5 easy steps to get a better understanding of Return on Investment

Comparing your Return on Investment for your marketing and distribution efforts can be difficult. This webinar shows you how it can be done in 5 easy to understand steps. We used the result from annual survey, the numbers are averages and might be different in your specific situation. You can download the Calculator and enter your own numbers.

 

Step 1: Costs

The first step in calculating your return on investment is to make the investment! If you are working with agents, this investment will be the commission you agree to pay them, as well as the time you take to answer calls from them and make the bookings that they send you.

If you are investing in marketing, the costs are more fixed. These costs come from the expense associated with printing marketing materials, distributing them, paying someone to build your website, paying for ad placements, etc.

Step 2: Result per product

Your result per product is how much money you make on top of how much money you spent getting that customer. Essentially it is your profit margin. This can be hard to calculate from your direct marketing efforts, unless you simply divide your fixed marketing budget by the number of customers you get from direct channels. However, it is much easier to calculate when selling through agents. You simply factor in the commission you pay the agent and take that away from the revenue you make per customer. These costs can be used to justify your retail price or to determine which distribution channels are worth the investment and which are not.

Step 3: Capacity

You might not know how much you are actually going to sell next year, but you do know how much you possibly can sell, and how much of that capacity you usually fill. Playing with the capacity rate will you show you that your return on your direct marketing fluctuates where your distribution ROI remains the same.

Step 4: Booking sources

Find where you get your bookings from in your Rezdy report. What percentage of bookings do you receive from agents?

Step 5: Return on investment

Compare your distribution and marketing return on investment, see exactly how much money you make for every dollar spent.

 

Calculate your Return on Investment

In the webinar we used average numbers obtained from the survey we ran. Obviously your numbers won’t be exactly the same, so check out the Return on Investment calculator and plug in your own numbers!





return on investment



 

 

Integrate Rezdy with GetYourGuide

Try Rezdy for free, we’ll help you getting listed.


 

Integrate Rezdy with several Online Travel Agents

Try Rezdy for free, we’ll help you getting listed.


Go back to part 1

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Join over 30,000 tour and activity professionals on Rezdy

Linda Tran, Digital Marketing and Content Coordinator, Rezdy Online Booking Software
About Linda Tran

Linda is part of Rezdy's Marketing Team and is passionate about producing content of all formats that help empower the tour and activity industry.

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(2/2) Distribution Strategy Webinar: Calculate your Return on Investment for Distribution and Marketing

, ,

5 easy steps to get a better understanding of Return on Investment

Comparing your Return on Investment for your marketing and distribution efforts can be difficult. This webinar shows you how it can be done in 5 easy to understand steps. We used the result from annual survey, the numbers are averages and might be different in your specific situation. You can download the Calculator and enter your own numbers.

 

Step 1: Costs

The first step in calculating your return on investment is to make the investment! If you are working with agents, this investment will be the commission you agree to pay them, as well as the time you take to answer calls from them and make the bookings that they send you.

If you are investing in marketing, the costs are more fixed. These costs come from the expense associated with printing marketing materials, distributing them, paying someone to build your website, paying for ad placements, etc.

Step 2: Result per product

Your result per product is how much money you make on top of how much money you spent getting that customer. Essentially it is your profit margin. This can be hard to calculate from your direct marketing efforts, unless you simply divide your fixed marketing budget by the number of customers you get from direct channels. However, it is much easier to calculate when selling through agents. You simply factor in the commission you pay the agent and take that away from the revenue you make per customer. These costs can be used to justify your retail price or to determine which distribution channels are worth the investment and which are not.

Step 3: Capacity

You might not know how much you are actually going to sell next year, but you do know how much you possibly can sell, and how much of that capacity you usually fill. Playing with the capacity rate will you show you that your return on your direct marketing fluctuates where your distribution ROI remains the same.

Step 4: Booking sources

Find where you get your bookings from in your Rezdy report. What percentage of bookings do you receive from agents?

Step 5: Return on investment

Compare your distribution and marketing return on investment, see exactly how much money you make for every dollar spent.

 

Calculate your Return on Investment

In the webinar we used average numbers obtained from the survey we ran. Obviously your numbers won’t be exactly the same, so check out the Return on Investment calculator and plug in your own numbers!





return on investment



 

 

Integrate Rezdy with GetYourGuide

Try Rezdy for free, we’ll help you getting listed.


 

Integrate Rezdy with several Online Travel Agents

Try Rezdy for free, we’ll help you getting listed.


Go back to part 1