EMPERIO Marketing Lab
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Manage seasonal offers in Goa

Panaji, Goa · Fictional practice case

The decision

A tour operator can sell 40 weekend seats at ₹1,200 or test ₹1,450 with expected demand of 34 seats. Variable cost is ₹500. An ageing tour route incurs ₹3,000 extra support weekly.

How should the operator price scarce slots and assess the old route?

Worked solution

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Case at a glance
₹1,200 × 40 seats · ₹28,000 contribution. ₹1,450 × 34 seats · ₹32,300 contribution. Review route support costs separately
  1. Contribution at the two prices is ₹700 × 40 and ₹950 × 34. The higher price needs 30 seats to beat baseline.
  2. Use transparent peak-slot pricing and test weekday spillover. Monitor cancellation and customer feedback as price changes.
  3. Calculate incremental demand retained by the legacy route after support. If its net contribution is negative, migrate customers with notice and honor existing bookings.

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