Free tool — Revenue
Can your prices be higher?
Most specialist operators set prices based on cost. But cost tells you nothing about what your customers are actually willing to pay. Price elasticity measures the relationship between your price changes and booking volumes — and the answer often surprises operators who have been cautious about raising prices.
What is price elasticity?
It measures how much your booking volumes change in response to a price change. If demand is inelastic (score below 1), your customers are absorbing price rises — a signal your pricing has room to move.
Why it matters for specialist operators
Customers booking specialist travel are often motivated by experience, not price. Many operators discover their demand is more inelastic than they thought — meaning cautious pricing may be leaving significant revenue on the table.
Enter your figures
Compare two periods where you made a meaningful price change — ideally a full year before and after. Use your average booking value (total revenue ÷ number of bookings) for each period.
How to read your results
Your elasticity score tells you how sensitive your customers are to price changes. Here's what different outcomes typically mean for a specialist tour operator.
Inelastic (below 1)
Customers absorbed the price rise
Bookings fell less than prices rose. Your total revenue went up. This is the most common finding for quality specialist operators — and a signal that further increases may be possible.
Elastic (above 1)
The price rise pushed too far
Bookings fell more than prices rose, reducing total revenue. This doesn't mean prices are wrong — it may point to how the increase was communicated, or that a more gradual approach would work better.
Unitary (around 1)
Revenue stayed roughly the same
The gain in price and the loss in bookings balanced out. You have fewer bookings at higher value — which may actually suit your capacity and operational model better.
Want to run this on your actual booking data?
This calculator works on averages. SPIKE HUB can break down your elasticity by product, destination, lead time and customer segment — so you know exactly where your pricing power is strongest, and where you need to tread carefully.
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