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For several years, AKR offered an on-going and then, seemingly forevermore “BOGO” rate structure offering.
Any discount is always shown (in any type marketing) applied against the highest standard everyday price. In the hotel industry, this price point is referred to as “Rack Rate”.
So, AKR had trained customers to expect a Two-Fer, Buy-One-Get-One rate. Just before the initial introduction (6 years back?) of this 50% off rate, they also had bumped their Rack Rate up about 2X to crazy high numbers, basically doubling the Rack Rate of a single diver rate (not the single diver supplement). The industry was puzzled. But not for long.
[This making opting for the Single Diver Supplement less desirable? They more than make up for that per-night discount by the presence of another seat at the bar, gift shop, etc. ]
This BOGO is considered in marketing an irreversible move, like getting a tattoo. You have trained your audience to buy only when you offer BOGO. How to get out of this blind canyon?
The entire BOGO offering, beyond pre-inflating the Rack Rate prior to the offer, had enough hidden add-on fees that although minor, did add-up. AKR has only one “comp set”, an industry phrase that refers to comparable properties. That is CCV. Those are the two Five Star Dive resorts on the rock. Even then, it’s hard to make direct comparisons, both properties have their features, they appeal to slightly different divers. Close enough.
With the BOGO, the AKR pricing after considering after sale ad-ons, was approximately $40/pax wk cheaper than CCV. (pax wk = per person per week). No large distinction, even then disregarding the Shore Dive disparity. BOGO, if you’d really study it, was not anything to get excited about, but it did have flash and it worked.
So, a few months back, AKR made that initial huge leap to get out of that BOGO trap.
What follows are current screen shots:
AKR 2022, now that 2022 bookings are over and discounts can be quietly withdrawn or altered
So, it’s $1469 for a week in the nicer room, 45% off rack rate which nobody ever paid. $1469 is the Rack Rate.
Then if you look at 2023, here’s a page with a year-long offer of a discount rate. Note the start date for booking is April 14th 2022, but it can be withdrawn at any time. Certainly a smart precaution with the world economy in the flux that it is.
An increased Rack Rate of $2835, “discounted” to $1549. It’s about 45% off of the Rack Rate. So essentially, $1549 becomes the de facto Rack Rate, an $80 increase over 2022
A week at AKR seems a good deal at $1549.
Now, here’s the Special Discount price for Scuba Board Invasion, with the admonition:
That’s $261 over the highest Rack Rate, Then the comps.
No one can match that… when anyone can beat it.
I may be way off on this, math is not my strong suit, but I hope you‘ll see and agree the multiple screens currently shown on-line by AKR are a bit confusing. I’ve always thought that they were intentionally so, but again, i need a calculator to count my toes. I think they confused the SB Invasion team, too.
They have found an exit strategy from the incurable BOGO, but are still discounting (until withdrawn, at an adjustable %) from the already grossly inflated Rack Rate.
[Truth be known, AKR bottom line was previously quite insulated from week-long guest profits due to the dolphins and Cruise Ship programs, but times are tough, day visitor volume is way down, and money is money]
2023 is about to be hard times for the Dive Travel Industry, largely due to fuel costs and food, esp. for AI pre-priced packages. The illusion of a cheaper stay by going guest house (day dive) ala-crate because you’re not paying AI food costs will further drop into the illusionary realm. Hang on.
Any discount is always shown (in any type marketing) applied against the highest standard everyday price. In the hotel industry, this price point is referred to as “Rack Rate”.
So, AKR had trained customers to expect a Two-Fer, Buy-One-Get-One rate. Just before the initial introduction (6 years back?) of this 50% off rate, they also had bumped their Rack Rate up about 2X to crazy high numbers, basically doubling the Rack Rate of a single diver rate (not the single diver supplement). The industry was puzzled. But not for long.
[This making opting for the Single Diver Supplement less desirable? They more than make up for that per-night discount by the presence of another seat at the bar, gift shop, etc. ]
This BOGO is considered in marketing an irreversible move, like getting a tattoo. You have trained your audience to buy only when you offer BOGO. How to get out of this blind canyon?
The entire BOGO offering, beyond pre-inflating the Rack Rate prior to the offer, had enough hidden add-on fees that although minor, did add-up. AKR has only one “comp set”, an industry phrase that refers to comparable properties. That is CCV. Those are the two Five Star Dive resorts on the rock. Even then, it’s hard to make direct comparisons, both properties have their features, they appeal to slightly different divers. Close enough.
With the BOGO, the AKR pricing after considering after sale ad-ons, was approximately $40/pax wk cheaper than CCV. (pax wk = per person per week). No large distinction, even then disregarding the Shore Dive disparity. BOGO, if you’d really study it, was not anything to get excited about, but it did have flash and it worked.
So, a few months back, AKR made that initial huge leap to get out of that BOGO trap.
What follows are current screen shots:
AKR 2022, now that 2022 bookings are over and discounts can be quietly withdrawn or altered
So, it’s $1469 for a week in the nicer room, 45% off rack rate which nobody ever paid. $1469 is the Rack Rate.
Then if you look at 2023, here’s a page with a year-long offer of a discount rate. Note the start date for booking is April 14th 2022, but it can be withdrawn at any time. Certainly a smart precaution with the world economy in the flux that it is.
An increased Rack Rate of $2835, “discounted” to $1549. It’s about 45% off of the Rack Rate. So essentially, $1549 becomes the de facto Rack Rate, an $80 increase over 2022
A week at AKR seems a good deal at $1549.
Now, here’s the Special Discount price for Scuba Board Invasion, with the admonition:
That’s $261 over the highest Rack Rate, Then the comps.
No one can match that… when anyone can beat it.
I may be way off on this, math is not my strong suit, but I hope you‘ll see and agree the multiple screens currently shown on-line by AKR are a bit confusing. I’ve always thought that they were intentionally so, but again, i need a calculator to count my toes. I think they confused the SB Invasion team, too.
They have found an exit strategy from the incurable BOGO, but are still discounting (until withdrawn, at an adjustable %) from the already grossly inflated Rack Rate.
[Truth be known, AKR bottom line was previously quite insulated from week-long guest profits due to the dolphins and Cruise Ship programs, but times are tough, day visitor volume is way down, and money is money]
2023 is about to be hard times for the Dive Travel Industry, largely due to fuel costs and food, esp. for AI pre-priced packages. The illusion of a cheaper stay by going guest house (day dive) ala-crate because you’re not paying AI food costs will further drop into the illusionary realm. Hang on.
