Major 5 Profit Maximization Tips for Tour Operators
- July 7, 2016
- Business advice, Online marketing, Travel and Life, Travel Business
Companies may use different online booking software to maximize profit or minimize loss based on their own organizational strengths. Pricing is the key to sales and revenue success. You must determine the prices customers are willing to pay. Product differentiation and low price can be critical to maximizing profit, controlling cost and maintaining market share may be more important in to minimizing loss.
5 tips to leverage data-driven price strategy to improve business performance:
Implement Smarter Pricing through online booking software
Tour operators face more challenges to determine sophisticated pricing. To maximize profits, prices need to be continually “tweaked” and updated. Show your customer the real time availability of each tour/activity and its pricing. Use online booking software to update your product pricing by season, day of week and time of day quickly.
You should know how to structure your pricing to optimize profits by adjusting price in light of customer ‘s demand. Most operators experience differential demand patterns for their products on different season. If you have a “peak season”, you can charge more rate at times of high demand. Customers will likely to pay more on holiday season for service provided. You can even optimize profit using a day time pricing strategy. During a busy season your activities price at 8AM might versus a price between 10AM to 4PM.
Differentiate yourself from your competitors
If your package pricing are higher than your competitors, then you need to differentiate your business from competitors by developing something better than they do. If you come up with some exciting and adventurous offer then people won’t mind paying more for a richer experience. Online booking software helps you achieve this. If once you achieve this, then you no longer have to compete with your competitors. They have to compete with you.
Increase your revenue per customer by adding a complementary offer such as offering lunch and dinner, additional equipment hire, medical diagnosis and many more. Know what your customers want and offer a unique service that they value as well as show them that you really value your customers.
Don’t leave customers in the dark about your pricing
Some business owners are hesitant to publish rates for their bookings online. This usually stems from a fear of their competition undercutting them.
However, your customers want to know what they should expect to pay you for a booking. They certainly won’t be sympathetic to your fear of the competition. If they can’t find your pricing, they’re likely to leave your site for another one. Make use of online booking software to clear your customers about your package pricing according to change in customer’s demand.
Enable Exit Intent Popup for Offers and Discounts
Exit Intent Popup (Mobile-optimized and responsive popup) helps in Coupon and Daily Deal Management. Messages show up with a special offer at the exact moment. Create your own customizes unlimited Exit-Intent popup to offer your customer with various Discount Coupons. Also make offer about anything that a prospective customer would appreciate.
Exit-intent popup allow you to detects user behavior and prompts them with a targeted campaign at the precise moment they are about to leave. Add promotional discounts or integrate your products with daily deals through online booking software. Manages and tracks all your promotions, so you can determine what works and when it works best for your customer.
Encourage Customer Loyalty
For long running business, you must build a good relationship with your customers. Treat your customers well, and offer them an incentive to come back again. To develop a good relationship with your customer, you should be using social media to connect with customers, visitors and attract new customers. Build a personal relationship with your customers by connecting with different Social media like Facebook, Instagram, etc. Take photos of your customers on tour and post them on Facebook. Photos and videos are the best way to convey what it feels like on your tour. Through online booking software allow your customers to leave a review and feedback on TripAdvisor, which can definitely be used as a marketing tool.
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