Tourism is a global business and New Zealand tourism is competing in a very competitive international market. To maintain our position on the global stage as a premium destination, and to achieve an economically sustainable tourism industry, New Zealand needs a tourism industry that competes on value. The price charged needs to be justified by the experience provided. TIA encourages pricing behaviour that is consistent with maximising the value of the visitor experience.
Aligned with the Tourism 2025 framework, the customer focus is on value over volume (acknowledging that volume growth is still important). New Zealand targets visitors with highly valued attributes (such as spend, seasonal pattern, regional dispersal) that deliver the greatest overall economic benefit. Aligned with this, TIA is an advocate for a tourism industry that strives to compete on the basis of value, rather than price. TIA supports pricing that:
- ensures the long-term economic sustainability of enterprises, and
- is consistent with consumer perception of the value delivered
There is a diverse range of tourism businesses and sectors within the New Zealand tourism industry, using different pricing approaches and tools. There is no one-fits-all approach. Dynamic pricing and differential pricing are both options but are unlikely to be suitable in all cases.
TIA also acknowledges that the value placed on a product can vary between consumer segments and can be priced differently.