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Revenue Management for Tour & Activity Providers

By : Admin

18 months ago, two visionaries realized that the tour & activities industry was doing something wrong. "How can once conceive", they said, "that all the components in travel & tourism industry have implemented revenue management in their business models, except us, the tour operators?". They were right, there was a time when a plane ticket from New York to San Francisco had a fixed price of $350 USD, and a time when hotels would charge a fixed price of $100 USD per room per night, but that time is long gone (thank God!). Today, airlines, hotels, cruises, and car rental companies vary their prices according to their occupation and availability.

 

Introducing Revenue Management.

 

The concept is simple, yet effective. As a business, hotels, airlines, car rental companies, cruises, and also tour operators have an installed capacity to provide their services to the final customers. This installed capacity implies having fixed costs that have to be paid, whether or not there are any clients (aka. sales) that use this service. As a consequence, there's a certain risk that needs to be mitigated, somehow. Well, thanks to TourOpp, now tour & activity providers, like the other players in this field, can provide an economic incentive to final customers to fill out the minimum number of seats to cover these costs. Thanks to TourOpp, tour and activity providers can manage and control their prices on a daily basis.

 

It works the other way around too! Even if occupation is at 80% and minimum costs are covered, wouldn't you like to fill out 100% of those seats? Try giving out a discount just for that remaining 20% of spaces, and see how you start incrementing your revenue and profit.

 

Occupation varies depending on the day of the week or depending on the season? No problem, tour operators in the TourOpp backend are in control of the number of seats available and the discount on any given day.



  • Sold out? No problem, just block that day.

  • Do you think you can fill out your tour without giving out a discount? Just sell it a regular price on our platform too.


That's the beauty of revenue management. That's the beauty of TourOpp.



It's a win-win situation for both, tour operators and clients alike. And we love the fact that by doing this we allow travelers to see more, to discover more, to go further.

 

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