Understanding and configuring Tiered Pricing

Blanca Castillo
Blanca Castillo
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Where do I find it?

PRODUCTS > TOURS

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What does it mean?

This article outlines the benefits of using Tiered Pricing within TourCMS and provides a comprehensive guide on how to configure this feature to optimise your revenue management.

Tiered Pricing is a logic-based pricing structure where the cost per unit is determined by the total quantity of a specific rate type selected. Instead of a single fixed price, the system automatically adjusts the rate as specific volume thresholds (tiers) are met.

How it works

The model operates on a "volume-based adjustment" principle—typically, the more a customer buys, the more they save. The tiers are generally structured as follows:

  • Tier 1 (Base): Standard pricing for low-volume or individual bookings.

  • Tier 2 (Mid-Range): An adjusted rate triggered once a specific quantity threshold is reached.

  • Tier 3 (Bulk/High-Volume): A highly competitive rate for large-scale orders or group bookings.

What should I do?

Creating a Tiered Pricing product

To set up a tour with tiered pricing, navigate to Homepage > Tours and locate the Create a new Tour / Hotel tab.

  1. Enter your product name and select the Tier pricing option.

  2. A warning message will appear outlining specific features that are incompatible with this pricing model. Press OK to proceed.

  3. Click Create Tour / Hotel

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Setting booking sizes

Before adding tiers, you must define your capacity. Navigate to the BOOKING SIZES / RESTRICTIONS tab.

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Important: Once tiers have been generated, the booking size for the tour must not be modified, as this can lead to system misconfiguration.

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Adding and managing tiers

Navigate to the RATE TYPES tab and select the Edit tiers button.

  • The initial tier: By default, the first tier covers the range from your minimum to maximum booking size (e.g., 1 to 10 pax).

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  • Adding tiers: You can create a maximum of 10 tiers per tour. Hover the mouse over the ‘Add tier’ link on the grey part of the bar to see the number of tiers left for this tour. Click Add tier to create a new threshold.

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Example: For a tour with a maximum booking size of 10, you can create a second tier from 5 to 10. The first tier would then be from 1 to 4, and the system updates the existing tier from 1 to 10 automatically.

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  • Automatic scaling: To prevent overlapping, the system automatically calculates the "Scale From" value based on the "Scale To" value of the previous tier.

    • Example: If tier 1 is set from 1–10, and you create a tier 2 from 5 to 10, then the system will automatically update the first tier to finish at 4. After creating a new tier, click the ‘Edit tiers’ button to check the tier scale.

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Tiers will always have a scale from and a scale to. The scale from is the minimum number of pax for the tier and scale to to the maximum number of pax of the tier.

 

Setting prices

You can define prices at two different levels:

  • At the rate level: Within the Edit tiers modal, enter the price for each rate type per tier. This applies the pricing globally across the tour.

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  • At the departure level: Navigate to Dates & Prices. Whether using the single departure tool or the activity generator, you can specify unique tiered prices for individual dates.

Example: Creating a new Single Departure Date

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Example: Creating departures with the 1 day tour/activity generator

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For example, if we change the price of a tier for both rates when creating departures:

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The departures will be created using this price per tier, even though the general tier pricing shows a different price.

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Note: If you modify these, ensure you click Save departure changes at the bottom of the page. Changes made here will override the global tour-level settings for those specific dates.

  • Departure Override: Changing a price here creates a "Departure Tier Price," which overrides the global tour settings for that specific date only.

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  • Massive update: You can also use the Mass Departure Update tool to change tiered prices across a large range of dates at once.

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Modifying tiers

Managing your pricing structure is flexible, but because tiers are linked, changing one will often affect the others automatically.

To change the range of a tier, click on the specific tier in the Tiers bar to open the modification modal.

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  • Automatic updates: If you change a middle tier, the surrounding tiers will automatically adjust to ensure there are no gaps or overlaps.

    • Example: If you have two tiers (1–4 and 5–10) and you modify the second tier to start at 9, the first tier will automatically shrink to 1–8.

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  • Validation rules: You cannot create overlapping tiers manually, and you cannot set a scale to a negative value.

 

 

Deleting tiers

To remove a tier, click on the tier you wish to delete and select the Delete tier button.

  • Initial tier: The very first tier (tier 1) cannot be deleted. This ensures the tour always has a valid pricing structure and prevents misconfiguration.

  • Space reallocation: When a tier is deleted, the surrounding tiers will expand to fill the gap.

    • Example: If you delete a middle tier, the tier below it will extend its "Scale To" limit to cover the range of the deleted tier.

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Good to know

  • Tours only: This feature is not available for Hotel products.

  • Capacity: Capacity must be set by departure.

  • No switching: Once a tour uses tiered pricing, do not switch it to other rate types.

  • Validation: The system blocks overlapping ranges, negative values, or zero-scale tiers.

  • Booking size lock: You can only change the overall booking size if only one tier exists.