6 ways to increase profit margins for tourism operators
Earning a profit is the hallmark of a great business. The only way to succeed in any industry to continuously earn a profit over the course of the time, but that is easier to say than it is to executive. Tour and activity operators must continually evaluate their operating procedures and business strategies in order to keep increasing their profit margins over time. Here’s 6 ways that will help increase profit margins for tourism operators.
What are profit margins?
Your profit margin is defined as the revenue that you generate through your tour and activity company above what is needed to cover your operating expenditures. Ideally, your profit margins will continue to increase year over year, allowing you to continue to build your business, develop your brand and encourage customer loyalty.
6 ways to improve your profit margins
- Offer value to your travelers. This is particularly important if your tour prices are higher than your competitors. Most travelers are willing to overlook the price point of a tour if they can see that there is added value to booking with your company. Personalized service, attention to detail and upgraded equipment are a few ways that you can easily increase the value of your products.
- Develop an online marketing strategy that encourages high-quality traffic. While driving traffic to your site is important, it’s better to encourage traffic from visitors who are most likely to book your tours and activities. You can do this by formulating an SEO strategy that allows you to get organic traffic from the search engines and also by investing in pay-per-click advertising campaigns.
- Improve your website. A website with a fast site speed, engaging multimedia elements and online booking capabilities is going to help you naturally increase your conversion rate.
- Create accurate, informative content and publish it on a regular basis. A blog is an easy way to provide your target market segments with valuable information about your tours and activities as well as the destination in which your business is located. However, your content marketing strategy should look beyond the words on the screen. You also will want to create videos, slideshows and other visual pieces of content to attract the most motivated travelers to your brand.
- Implement a retargeting campaign. It’s not uncommon for prospective travelers to visit a tour and activity website, only to abandon it within a few minutes because they aren’t quite ready to book. With a retargeting campaign, you can continue to remind these site visitors that they were interested in your brand and still need to finalize their booking. Retargeting ads can appear on the search engine results page, within an e-mail inbox or on a social platform.
- Don’t forget about the importance of automated e-mails. Automatic e-mails can be used for a variety of reasons, from soliciting feedback about your tours to promoting your most recent discounts and packages.
As you increase your profit margins, you will be able to add to the products that you offer, improve your tour and activity operating equipment and ultimately develop better brand loyalty.
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Image credit: Ben White