Assignment task: Biltmore Discussion
You have been hired by Biltmore Industries to manage guest services at their Asheville, NC attractions. The attractions include the Biltmore House, the Winery, shopping venues, restaurants, hotels, and various other add-on activities. By far, the main revenue component (and draw) is admission to the house. Guests typically are from middle to higher income demographics. Eighty percent of guests are from the US, and 20% are international travelers. About 25% of total guests are part of a tour group. Admission to the house only includes self-guided tours. Additional tours are available to special places in the house such as the roof/attic and behind the scenes (basement/etc) for additional fees. About 35% of total guests purchase additional tours. Somewhere around 70% of guests do eat at one of the restaurants. Approximately 30% of guests only visit the house and nothing else. About 20% of guests stay on property in one of two hotels. In the past, discounts have been given to house admission for age (kids are free) and occasionally time of year. During certain Spring (depending on flower bloom schedules) all attractions are over capacity. During winter months, except for Christmas, attractions are well under capacity.
One of your responsibilities is to establish a more sophisticated pricing strategy for house admission similar to what Disney does with their theme park tickets. Create a pricing strategy and offer your suggestions.