How can you increase your profits per customer rather than just increasing your revenue? Since profit is what you get to keep, that should be the part of the equation that tour operators focus on improving. There are some pretty easy tips that can help you increase the profit per customer ratio of your tour or activity:
To figure out what your gross margins are, you divide your gross profits by your net sales and the result is your gross margin. To find your net sales, you take your total sales, minus out your costs, and that gives you your net sales. If you want to increase your gross margins, then you have to raise your prices. But if your ticket prices are higher than your competition, then you need to stand out from your competition by developing a niche market. If you do something better than everyone else, and are consistent in what you do then people won’t mind paying more for a richer experience. When you can achieve this, then you no longer have to compete with your competition. They have to compete with you.
The simplest thing you can do to increase your revenue per customer is by adding a complementary offer to the experience. For example, offer lunch and dinner options to go along with it, or additional equipment hire. To do this well, you really need to know what your customers want. Think of an observatory tour operator, who offer private telescope viewing sessions. If it’s a couple who book a private viewing, you could offer a glass of wine and tapas prior to the viewing to make the experience more romantic.
To obtain repeat business, you treat your customers well, and offer them an incentive to come back again. The simplest example is to offer a discount for things like referring you to a friend, joining your Facebook page, or leaving you a good review on TripAdvisor. That way you build a positive relationship with your clients – and, if you impress them enough – their friends. Part and parcel of customer loyalty is providing a way for customers to keep in touch:
The key is to differentiate your business from competitors. To do this, treat your guests well, and offer a unique service that they value, in return this will increase revenue. Show that you really understand them and they will happily return (and hopefully with their friends). Rezdy can help you grow your business! If you’re interested in taking a test drive, click on the link below: