I opened a box of breakfast cereal recently, and the inner bag of contents reached about half the height of the packaging. It was a classic example of the disclaimer that warns us that “contents are sold by weight, not volume”. If the packaging properly matched the size of its contents, it would have been half the size, have far less visibility on the supermarket shelf, and I probably would have passed on a purchase that did not appear to represent a very good value. You might say that I was deceived into making the purchase. Even though I liked the cereal, I am unlikely to purchase it again.
There are so many instances where corporate marketing decision-makers seem to underestimate the ability of their customers to make informed buying decisions and to alternately choose substitute products. Then there are instances that border on collusion, where companies follow the lead of a competitor who trail-blazes a reduction in product size without a corresponding reduction in price. For example, it only took one orange juice company to shrink its half-gallon container down to 59 ounces before every other company quickly followed suit. The same thing happened with ice cream, where the half-gallon container somehow evolved into a quart and a half. Perhaps the greatest offenses to consumer intelligence are meaningless comparison claims. I recently purchased a 50 ounce container of liquid laundry detergent where the label prominently stated “25% more ounces” (in a 36 pt. bold font) “vs. 40 fluid ounces” (in a 6 pt. light font). Needless to say, that claim did not influence my purchase.
Respect Your Guests’ Intelligence
People who feel that they have been somehow deceived into making a buying decision are almost never going to be return customers. When it comes to the outdoor hospitality industry, one of the biggest complaints is when guests feel like they are being “nickeled and dimed” during their stay. Although it is far preferable to avoid the imposition of add-on fees for incidentals like showers, Wi-Fi, or your planned activities, it is very important that any such fees be fully disclosed at the time of reservation. (One of my pet peeves is the imposition of so-called “convenience fees” for the making of reservations themselves!)
My best advice is to bundle as much as possible into your basic fees, promote the value within your rate structure, and stop presuming that people are comparison shopping for price without reading the fine print. One trend that I hope does not make inroads with the outdoor hospitality industry is the growing practice of hotels to impose so-called “resort fees”. This practice is so deceptive that it has generated lawsuits filed on behalf of consumers by 47 state attorneys general, who had recently negotiated an agreement with the Federal Trade Commission, until the Trump administration ordered the FTC to back off, siding with the hotel industry rather than the interests of consumers. Nonetheless, guests have little or no tolerance for deceptive rate embellishments.
Consider the All-Inclusive Approach
A far better – and opposite – approach is the all-inclusive concept, where guests are willing to pay a premium for the privilege of avoiding add-on fees. The all-inclusive concept originated with Club Med way back in 1950. It is the rule rather than the exception in some vacation destinations such as Mexico and the Caribbean. The concept has since been embraced by resort operators, cruise lines, travel agencies and online booking companies, several major airlines (including United, JetBlue, and Southwest), hotel chains (including Marriott and Hilton), and even wholesale buying clubs like Costco.
With all-inclusive pricing, as the name implies, guests willingly pay a premium fee for the privilege of vacationing without having to pull out their wallets throughout the course of their stay. All-inclusive pricing is most popular with destination resorts and highly competitive, saturated tourism markets. Probably the best known and most broadly marketed of these practitioners is Sandals Resorts International, which now promotes the tagline of “more quality inclusions than any other resorts on the planet”. Their all-inclusive stays include accommodations, dining, wine and spirits, golf, water sports, scuba diving, land sports, and entertainment. Even here, there are fee-based options such as spa treatments, premium wines, and scuba certification, as well as some restrictions on golf that vary from one resort or level of accommodations to another. The bottom line is that guests feel that they are being offered far more than they would otherwise expect.
Unfortunately, when I perform a Google search for the terms “all-inclusive campgrounds” or “all-inclusive camping resorts”, the results are pretty limited. I am more likely to find dude ranches, cabin resorts, and family resorts that do not fit the definition of a campground. Nonetheless, it seems that there is a small but growing list of campgrounds, ownership groups, and franchises that are discovering and beginning to capitalize upon the “all-inclusive” buzz words.
When I clicked through to the website of a campground in Michigan that calls itself “all-inclusive”, I found that it did not charge extra fees for most of its planned activities (something that is not all that uncommon); however, it charges extra fees for bike rentals, boat rentals, boat launching, and a few other “add-ons”. Another park in Wisconsin is promoting its all-inclusive pricing but is also charging for a short list of optional services that include boat and golf cart rentals, its laundry, and honey wagon service. Finally, a Jellystone Park in Texas is really promoting an all-inclusive pricing concept that includes full use of a wide range of recreational amenities – from miniature golf to a jumping pillow to a splash park. In each instance, the point of emphasis is not the list of fee-based options but the list of what is included at no additional charge.
The key to growth in the family camping industry has always been to draw in a new wave of guests who do not currently consider themselves campers. To reach them, offer them the unexpected and create the perception of overwhelming value that they have come to appreciate elsewhere. An all-inclusive approach to pricing may prove to be an idea whose time has come.
This post was written by Peter Pelland