Sunweb a $900 million travel and leisure company, operating with 6 brands across 7 international markets and supported by 400 travel representatives, offers a comprehensive range of holiday experiences. From summer holidays and winter sports deals to hotels and all-inclusive vacations, Sunweb caters to travelers seeking personalized, seamless getaways. With its own fleet of planes, the company ensures greater convenience and flexibility. Headquartered in cities such as Rotterdam, Girona, Paris, Copenhagen, Stockholm, and Zurich, Sunweb Group has solidified its position as a leading European travel organization, delivering exceptional service and unforgettable experiences to millions of customers annually.
Case video: Sunweb about Pricing
- Rising Component Costs made our Margin-Driven Pricing Ineffective
Our margin-driven pricing strategy had become ineffective as rising component costs, driven by inflation, outpaced our ability to manage margins. Without clear visibility into these fluctuating costs, we had relied on outdated assumptions of stability, leaving us vulnerable. Additionally, we lacked the tools and processes to manage pricing in a more dynamic way, which further complicated our ability to respond to changing market conditions. To stay competitive, we transitioned to a more differentiated pricing approach, enabling us to adapt effectively to the rapidly evolving landscape.
- Struggling to execute frequent Price Changes across Millions of Daily Price Points
Managing millions of price points daily was a daunting challenge. To price our packages effectively, we needed to calculate accurate price points for services like flights, hotel rooms, meal plans, and tours, all of which fluctuated based on seasonality, hotel ratings, and duration of stay. This complexity was compounded by frequent price changes, especially for services like flight tickets and hotel stays. Identifying the best margins and finding the optimal price within the context of our travel packages became an extremely time-consuming and complex task, particularly without the right tools or visibility into costs.
- Lacking Insights into Customer Behavior and Willingness to Pay
We lacked the necessary insights into customer behaviour to determine the optimal price for our offerings. Understanding what drives pricing—such as the difference between a hotel near the beach versus one further away—became critical. Without these insights, it was difficult to adjust prices effectively based on customer preferences, leaving us less competitive in a market where price awareness was growing.
- Lack of Control in managing Travel Package Pricing
Our previous pricing system did not allow us to change prices in bulk or quickly adjust travel package pricing. This limitation made it difficult to respond swiftly to new insights and seize low-hanging opportunities, particularly with the frequent fluctuations in flight and accommodation costs. Consequently, we struggled to optimise our travel package pricing and missed valuable chances to maximise margins efficiently.
- Strain on team resources due to Slow Pricing Process: limiting opportunities
Our old pricing system took too much time and effort, making it costly in terms of resources and payroll. The manual repricing process consumed much of our team’s time, preventing them from focusing on strategic tasks. This inefficiency caused us to miss quick wins and opportunities to adjust prices dynamically, increasing operational costs and limiting our ability to respond quickly to market changes.
- Inability to Perform Price A/B Testing
Our pricing strategy was hindered by the inability to conduct A/B price testing, limiting our ability to experiment and find the most effective price points. This prevented us from optimizing our pricing based on real customer responses and data.
- Unlocking the Potential of Our Internal Data Science Team, AI, and Algorithms
Sunweb had already developed an internal demand forecasting algorithm, but our old pricing tool wasn’t equipped to make use of this internal knowledge and handle AI-driven pricing algorithms. in our old situation We lacked visibility into historical prices and product performance, which made it challenging to fully leverage advanced pricing strategies. By collaborating with SYMSON and seamlessly integrating their models with ours, we are now able to optimize pricing even further. This shift enables us to benefit from smart algorithmic pricing recommendations while maintaining full control with the ability to manually intervene when needed. Instead of focusing on past limitations, we are now achieving more accurate and optimized pricing results.
Before Symson, our pricing strategy faced major limitations. We lacked visibility into whether we were offering the right price and couldn’t execute innovative pricing ideas. Managing millions of price points daily was difficult, and manual processes made it hard to act on low-hanging pricing opportunities.
With Symson, we became more efficient, executing three times as many price changes in half the time. We also gained the ability to conduct A/B tests, helping us discover customer willingness to pay and implement profitable pricing strategies. Symson has been key to transforming our pricing approach.
Symson is a key element in allowing us to build a truly differentiated pricing strategy.
Jason Day
RM Innovation Manager
SYMSON was able to help Sunweb Group with key pricing process improvements such as:
- Modernising Pricing to Achieve Significant Margin Increases
By modernising our pricing approach and strategically focusing on key areas, we were able to improve and optimise our margins substantially.
- Overcoming Rising Component Costs
SYMSON enabled us to transition from an ineffective margin-driven pricing model to a dynamic, differentiated approach. We now have real-time visibility into fluctuating component costs, allowing us to respond quickly and accurately. As a result, our pricing strategy is no longer based on outdated assumptions, giving us the flexibility to maintain profitability even in a volatile market.
- Efficient Price Management Across Millions of Price Points
Managing millions of daily price points is no longer a daunting challenge. With SYMSON, we can automate price updates for flights, hotel rooms, and other services, significantly reducing manual effort. What previously took hours now happens in real-time, enabling us to make optimal pricing decisions quickly and efficiently. This has allowed us to adjust prices more frequently, staying competitive while maximising margins.
- Enhanced Customer Behavior Insights and Willingness to Pay
SYMSON has equipped us with the ability to gain deep insights into customer behavior and willingness to pay. We can now analyse key pricing drivers, such as the difference in value between a beachfront hotel and one further inland. This data-driven approach has empowered us to tailor our pricing more effectively, improving our competitiveness in an increasingly price-sensitive market.
- Real-Time Control Over Pricing
Our outdated system's inability to adjust prices in real-time has been completely resolved with SYMSON. We now have real-time control over our travel package pricing, reducing the time it takes to create new prices from 10 minutes to almost instant. This ability to act quickly in response to frequent price fluctuations, especially in flights and accommodations, has drastically improved our operational efficiency.
- Streamlined Resources and Increased Efficiency
By automating pricing processes, SYMSON has drastically reduced the strain on our team. Manual repricing, which used to consume a significant amount of time and effort, has been replaced with automated workflows. This has freed up resources, reduced operational costs, and allowed our team to focus on strategic tasks, ultimately improving our ability to respond swiftly to market demands.
- A/B Price Testing for Optimal Pricing
In the near future, Sunweb will be able to conduct A/B testing on prices, a feature currently not yet activated. With this capability, users will be able to experiment with different price points in a controlled environment, providing valuable insights into customer preferences and behaviors. This data will enable businesses to refine their pricing strategies, helping them to optimise for maximum profitability and better align with market demands. This new feature will mark a significant step forward in enhancing strategic pricing capabilities within the platform.
- Ready for AI-Powered Pricing with Full Control
With SYMSON, we are now fully prepared to embrace AI-driven pricing strategies. The platform provides smart, data-backed algorithmic pricing recommendations based on historical trends and real-time market data. What sets SYMSON apart is its transparency, allowing us to understand the reasoning behind each recommendation. Additionally, we maintain full control with the ability to manually intervene whenever necessary, ensuring that our pricing strategy remains flexible and adaptable to changing conditions.
Do you want a free demo to try how SYMSON can help your business with margin improvement or pricing management? Do you want to learn more? Schedule a call with a consultant and book a 20 minute brainstorm session!
