Because they’re so convenient, packages are a great way to get more bookings. A packaged tour combines elements that would be a hassle to coordinate separately, such as transport, accommodations, meals, attractions, and entertainment, can be bought as one easy package.

Here are some great tips on the essentials for packaging your tourism product.

1. Pricing

The price of your products should be set 12 months in advance, and it should include all your costs – product development, entry and guide fees, meals, maintenance, and marketing.

If you want to partner with other tour operators (which you totally should), make sure that

  • Everyone has a good profit margin.
  • You have allowed for unexpected costs.
  • You have determined product break-even points.

It would also be smart to ask everyone involved to promote and sell the package.

If you want to reduce your package price, remember not to compromise quality. It should be your last option. Consider other strategies that will make your tours more competitive.

 

Try Rezdy for free

2. Commission

Depending on the market you’re targeting, you will need to consider the commission you pay your agents. It differs from 10-30% depending on the type of agent involved.

If your market is overseas, you’ll  likely be dealing with an inbound tour operator, and they will expect a commission of 25-30%.

3. Legal Implications

Be aware that wholesalers and retail travel agents must

  • Provide explicit conditions of sale.
  • Be selective with product endorsements.

You don’t want to be involved in a customer complaint for your failure to deliver or misleading advertising.

4. Package Promotion

How you distribute your package will determine your success. You should conduct product and package familiarisations for retail agents, wholesalers, and sample target markets.

Packaging for overseas:

Contact distributors who understand international packages and markets. You may not even need to create a package, because the ITO may  bundle a range of products, including yours, for a wholesaler. Remember to screen your overseas resellers, too.

Packaging for domestic markets:

It’s recommended to start domestic before going international, because it’s less expensive and complicated. Target the following groups:

  • Clubs and associations members (particularly those that cater to retirees)
  • Schools and educational institutions (if your product has educational content, create an excursion package)
  • Families (they will want the value for money)

Testing the waters locally will also generally produce faster results.

Remember to include special interest groups and individuals in your marketing – for example, sports, festivals, arts, and 4-wheel drive enthusiasts.

 

Try Rezdy for free

5. Complementary Product Packaging

Partnering with other tour operators who offer complementary products is a smart way to reduce your promotion costs while making your package more appealing.

For example, you can offer

  • A range of products from an area to specific niches with related interests.
  • A selection of products in a destination where a customer can create a personalized itinerary.

6. Timing

Last, but certainly not least, is timing. When you set your availability, remember to consider your high season and the popular time of year that your target markets come by. Sometimes, however, tour packages can be the perfect answer to your off-peak season too.

The return on your investment will be gradual, so don’t expect an immediate return. Profits can take up to 2-3 years but can be achieved earlier if you get your distribution strategy right.

You can do things to speed up the process, like choose online booking software that allows agents to check your availability and book immediately. Make sure it isn’t commission-based so it doesn’t eat into your profits.

Want more great tips that can help enrich your overall strategy business? Why not download our latest Industry Survey results that can help you stand out competitively and provide you with insightful tips throughout.

Tour Operator Trends Global 2018

Want to learn more?

Get your hands on the Australia and New Zealand Industry Survey results: Download here

Or grab the latest United States and Canada Industry Survey results: Download here

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Linda Tran, Digital Marketing and Content Coordinator, Rezdy Online Booking Software
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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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6 Keys to Packaging Your Tourism Product

, ,

Because they’re so convenient, packages are a great way to get more bookings. A packaged tour combines elements that would be a hassle to coordinate separately, such as transport, accommodations, meals, attractions, and entertainment, can be bought as one easy package.

Here are some great tips on the essentials for packaging your tourism product.

1. Pricing

The price of your products should be set 12 months in advance, and it should include all your costs – product development, entry and guide fees, meals, maintenance, and marketing.

If you want to partner with other tour operators (which you totally should), make sure that

It would also be smart to ask everyone involved to promote and sell the package.

If you want to reduce your package price, remember not to compromise quality. It should be your last option. Consider other strategies that will make your tours more competitive.

 

Try Rezdy for free

2. Commission

Depending on the market you’re targeting, you will need to consider the commission you pay your agents. It differs from 10-30% depending on the type of agent involved.

If your market is overseas, you’ll  likely be dealing with an inbound tour operator, and they will expect a commission of 25-30%.

3. Legal Implications

Be aware that wholesalers and retail travel agents must

You don’t want to be involved in a customer complaint for your failure to deliver or misleading advertising.

4. Package Promotion

How you distribute your package will determine your success. You should conduct product and package familiarisations for retail agents, wholesalers, and sample target markets.

Packaging for overseas:

Contact distributors who understand international packages and markets. You may not even need to create a package, because the ITO may  bundle a range of products, including yours, for a wholesaler. Remember to screen your overseas resellers, too.

Packaging for domestic markets:

It’s recommended to start domestic before going international, because it’s less expensive and complicated. Target the following groups:

Testing the waters locally will also generally produce faster results.

Remember to include special interest groups and individuals in your marketing – for example, sports, festivals, arts, and 4-wheel drive enthusiasts.

 

Try Rezdy for free

5. Complementary Product Packaging

Partnering with other tour operators who offer complementary products is a smart way to reduce your promotion costs while making your package more appealing.

For example, you can offer

6. Timing

Last, but certainly not least, is timing. When you set your availability, remember to consider your high season and the popular time of year that your target markets come by. Sometimes, however, tour packages can be the perfect answer to your off-peak season too.

The return on your investment will be gradual, so don’t expect an immediate return. Profits can take up to 2-3 years but can be achieved earlier if you get your distribution strategy right.

You can do things to speed up the process, like choose online booking software that allows agents to check your availability and book immediately. Make sure it isn’t commission-based so it doesn’t eat into your profits.

Want more great tips that can help enrich your overall strategy business? Why not download our latest Industry Survey results that can help you stand out competitively and provide you with insightful tips throughout.

Tour Operator Trends Global 2018

Want to learn more?

Get your hands on the Australia and New Zealand Industry Survey results: Download here

Or grab the latest United States and Canada Industry Survey results: Download here