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Next Level Customer Service For Tour Operators

Getting to grips with customer service means predicting the issues and questions guests may have at every stage of their interaction with you. Rather than reacting to situations as they occur, first, you must sit down and consider the customer service journey. Because communicating and building relationships with customers is not something that should only be done before the tour, it should be considered at every stage. This may sound like more work than you signed up for, but there are plenty of tools that can help you automate small actions that will make a difference to your customer’s experience.

We’ll explore how you can assess your customer’s needs, how your customer service policy can grow with your business, and what parts of the customer service can be automated to save you and your team time. Technology plays an important role in streamlining such processes in your business and we’ll offer our top tips on how to get software savvy.

Map Your Customer Journey

Mapping out your customer’s journey is the best way to analyse what improvements need to be made in your business. This map shows how the customer will interact with your brand from the moment they first encounter it to after their experience is over. Breaking down the process (opens in a new tab) into steps makes it easier not only to assess the pros and cons of each stage but also to see what overall changes need to be made. For example, are there recurring issues at every stage which are negatively impacting the guest’s experience?

Analyse guests’ needs by taking note of what questions they ask at each stage and keep track of the questions that keep coming up and what frustrations guests have when they contact you. Look at your analytics and study user behaviour on your website, what route do they take, where do they spend more time, and what page are they on when they leave the site.

Before the Tour

Before the customer has decided to take the tour there are various stages to consider. First impressions are key and this doesn’t mean the first time you speak to them, it’s the first time they interact with your brand. This could be on social media, on a webinar, or on your website. Do all your online platforms convey the image of a professional brand (opens in a new tab) that customers will trust enough to invest money in? Having a professional-looking website that links to all your social media platforms is a great place to start (opens in a new tab) when building a brand image.

Answer Guests’ Questions

Next, the content on your website should preempt the information (opens in a new tab) that guests will want to know before booking a tour. Whether that’s covering the price, meeting point, useful information, or including FAQs on the tour page, the less the customer needs to ask you, the more you show how well you understand their needs.

Response Times

However well you write your content and anticipate queries, some guests prefer to gain trust by speaking with the tour operator before booking. Whether they’re asking for recommendations or discussing personal requirements, to ensure a great customer experience you’ll need to respond quickly to emails. Though this may sound basic, many people get it wrong and when it’s done properly it builds a strong foundation for a great relationship and an ever-precious guest review. We can see the positive effects of a great customer service system in the reviews of Maldives tour operator Secret Paradise. Their TripAdvisor (opens in a new tab) is brimming with 5-star reviews praising the team’s thoughtfulness in recommending tours and going above and beyond to ensure their guests are comfortable from the moment they arrive to the moment they leave.

Communicating through online platforms doesn’t need to be on the pretext of answering guests questions. In fact, building rapport with your customers on the phone, via email, or most likely on social media is a great way to build loyalty and keep your brand at the forefront of people’s minds. This could take the form of responding to comments, liking posts, or producing content that will attract your potential customers.

It’s the Small Things that Count

Small things such as setting up a day before reminder either through the booking software or email automation show guests how prepared you are and also decreases no-show rates (opens in a new tab) . Another option to exceed your guest’s expectations is to include a bonus resource in the confirmation email. Downloadable content (opens in a new tab) such as an illustrated tour map or suggested packing list helps your guests prepare.

On The Tour

We’ve talked a lot about the components that make a great tour and an outstanding guide (opens in a new tab) . Here are a couple of key points that will help you go above and beyond the call of duty.

• Make guests feel like individuals. If guides reel off their narration as though it was a script, guests are not going to feel like the guide is making any effort. When it seems as though the tour leader is going above and beyond, guests are far more likely to leave a good review and recommend the tour to others.
• Linking on from the previous point, reading the room and adapting to your groups’ needs and interests is almost guaranteed to give your customers a positive and memorable experience. In this article (opens in a new tab) , Nikki Padilla Rivera gives a great example of a tour guide adapting to the interests of the guests and showing emotional intelligence and confidence by being flexible with the topic.
• As well as adapting to your guests’ needs, being able to quickly adapt to changing situations (opens in a new tab) is a great way to show customers how professional your business is and why it’s worth taking a tour with you again. We’ve seen this most notably with maintaining a high level of customer service during the pandemic (opens in a new tab) .

After the Tour

Customer service after the tour has finished is one of the most neglected stages of the process. This stage can also be the easiest as you can take advantage of email automation.

Follow up emails

Follow up emails are a special touch that can distinguish you from your competitors. Sending a thank-you note shows appreciation for your customer and their trust in you and increases the chances of their return. A follow-up email is also a great opportunity to ask for feedback. Testimonials are key to a business’s success these days, in fact Hubspot says, “ 55% (opens in a new tab) of consumers no longer feel they can trust companies, and 79% (opens in a new tab) of shoppers trust online reviews as much as personal recommendations.”  Lastly, use your post-tour emails to encourage return visits. We’ve written about the importance of customer loyalty (opens in a new tab) and the return visitor for growth, so why not include a discount on a second tour? This small gesture will encourage guests to return with friends and spread the word.

Moreover, the follow-up emails can all be set up through booking software or automated emails, meaning you can create a personal touch without spending time on fashioning individual responses.

Customer service and guest experience are key components to the success of your tour business. It’s a great way to fine-tune your processes and help you stand out from competitors. By creating a process where you can interpret guests’ questions and frustrations into business improvements, you give your business room to grow. After analysing customer behaviour once, you will become more aware of possible adjustments you can make in the future. What’s more, the use of automation modernises your business and gives you time to focus on exploring new ideas.

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Tour Operator Guide: How to Improve Customer Service

In the vibrant and ever-evolving world of travel and tourism, standing out from the crowd is not just a goal—it's a necessity, especially for travel agencies and tour operators.

As we navigate through this competitive landscape, the key to success lies in our ability to provide exceptional customer service and unique experiences.

Today, we're thrilled to share 10 out-of-the-box tips that can transform your tours from ordinary to extraordinary. From themed dress days to virtual reality segments, these tips are not just creative; they are practical, adaptable, and sure to result in exceptional customer service.

So, let's dive in and explore how you can elevate your tour offerings to new heights!

Why Great Customer Service is Essential for Travel Operators

Let's talk about something super important - customer service.

It's the secret sauce that can make or break your business.

Think about it: when your customers are happy, they're not just buying a ticket or booking a tour; they're buying an experience, a piece of a dream. And you're not just a travel guide; you're a dream weaver!

It's all about making connections, understanding what your travelers need (sometimes even before they do!), and then knocking their socks off by going above and beyond. In a world where everyone's offering the next big adventure, it's your top-notch customer service that will keep them coming back for more.

Remember, in the travel biz, it's not just about the destination; it's about the journey – and that journey should be filled with smiles, support, and superb service.

Increase Customer Satisfaction in Travel and Tourism Industry With These 10 Tips

1. themed dress days.

Imagine your guides greeting guests in period attire for a historical tour or in wildlife-themed costumes for a safari adventure. Themed dress days add an element of fun and immersion that enhances the storytelling aspect of your tours. This visual and interactive touch not only delights guests but also makes for fantastic photo opportunities, encouraging social media shares.

To successfully implement themed dress days, prepare a wardrobe of costumes relevant to your tour's theme. Schedule these special days in advance and promote them through your  marketing channels . Also, ensure that all staff members are comfortable and trained in engaging with guests while in costume.

Example : A historical tour company in Rome could have guides dress as ancient Romans on specific days. They could wear togas and laurel wreaths, creating a more immersive experience as they lead guests through the Colosseum and Roman Forum.

2. Interactive Elements

Engaging your guests is key to a memorable tour. Incorporate interactive segments like treasure hunts, quizzes, or puzzles that relate to your tour's theme. For instance, a city tour could include a mystery-solving element where guests uncover hidden gems of the city. This adds an exciting, game-like dimension to your tours, making them more dynamic and memorable.

Interactive elements like treasure hunts may require additional planning and resources. One solution is to start small with simpler, low-cost interactive activities and gradually evolve them based on guest feedback and resources.

Example : A city tour operator in Paris might include a treasure hunt where guests solve riddles at each landmark, like finding a hidden message near the Louvre or deciphering a clue at Notre-Dame. This turns a regular tour into an engaging adventure.

3. Local Surprise Visits

Nothing in travel industry beats the authenticity of  local  experiences. Arrange for surprise visits or guest appearances by local artisans, musicians, or experts. This not only supports local communities but also provides an exclusive peek into the local culture and practices, offering a genuine and enriching experience that goes beyond the usual tour itinerary.

Example : A culinary tour in Tokyo could surprise guests with a visit from a local sushi chef who demonstrates sushi-making techniques. Guests not only learn about sushi but also get a taste of local expertise.

4. Digital Souvenirs

In a digital age, offering personalized digital souvenirs can be a game-changer. Create a digital photo album, a video montage, or even a virtual reality snapshot of the tour. These digital keepsakes are easy to share and serve as a modern and eco-friendly alternative to traditional souvenirs, keeping your brand in the hearts and minds of your guests.

Ensure digital souvenirs are accessible to all guests, including those with disabilities. Provide alternative formats like audio descriptions or tactile experiences for visually impaired guests.

Example : An adventure tour company in New Zealand could offer guests drone footage of their bungee jumping or hiking experiences. This digital souvenir provides a unique perspective and a memorable takeaway.

5. Cultural Immersion Workshops

To deepen the cultural experience, include short, interactive workshops in your tours. Whether it's a pottery-making session in a local village, a cooking class featuring regional cuisine, or a dance workshop, these activities offer hands-on learning and a deeper connection with the destination's culture.

Make sure these workshops are inclusive and respectful of all cultures and backgrounds. Provide options that cater to various skill levels and physical abilities.

Example : In a cultural tour of India, guests could participate in a short Bollywood dance workshop in Mumbai, learning the basic steps and experiencing the vibrancy of Indian cinema culture.

6. Sensory Experiences

Enhance the sensory appeal of your tours. If it's a nature tour, incorporate elements that engage all senses, like a guided meditation amidst the sounds of the forest. For culinary tours, focus on the aroma and flavors of local dishes. By engaging multiple senses, you create a more immersive and impactful customer experience.

Example : A nature tour in the Amazon Rainforest could include a segment where guests close their eyes and identify sounds of the rainforest, followed by a tasting of local fruits, engaging their sense of hearing, taste, and smell.

7. Eco-Friendly Swag

Show your commitment to sustainability by offering eco-friendly tour merchandise. Items like organic cotton t-shirts, bamboo utensils, or seed paper postcards not only serve as mementos but also provide exceptional customer service and promote environmental awareness. This approach resonates especially well with the growing demographic of eco-conscious travelers.

Emphasize the importance of sustainable practices in the hospitality industry throughout your operations. Choose swag items that are eco-friendly and communicate your commitment to environmental conservation to your guests.

Example : A beach tour operator in Hawaii could provide guests with reusable water bottles and bamboo sunglasses. These eco-friendly items serve as practical souvenirs and align travel companies with environmental conservation efforts.

8. Personalized Itineraries

In today's world of personalized services, offering customized itineraries can set your tours apart. Allow guests to pick and choose travel arrangements, activities or destinations that interest them the most. This flexibility not only caters to diverse preferences but also makes guests feel valued and understood. As such, make sure to craft personalized messages in addition to your personalized experiences.

Example : A tour operator in New York City could offer customizable itineraries where guests choose from options like a Broadway show, a visit to a particular museum, or a food tour in a specific neighborhood, catering to their interests.

9. Virtual Reality Segments

Incorporate virtual reality (VR) to showcase historical events, inaccessible terrains, or future projections. For instance, VR can transport guests back in time to historical battles or forward to envisaged city developments. This high-tech approach adds a futuristic edge to your tours and can be particularly appealing to tech-savvy travelers.

Train your travel and hospitality staff on how to use VR equipment safely and effectively. Ensure they can assist guests who may be unfamiliar it, to make them a good customer service team.

Example : A historical tour in Egypt could use VR headsets to show guests what the pyramids and Sphinx looked like in their prime, offering an exciting contrast between past and present.

10. Post-Tour Online Community

Create an online platform where guests can connect post-tour. This can be a social media group or a forum on your website where they can share photos, tips, and stories. This community-building approach not only keeps the memories alive but also creates a network of brand ambassadors who share their experiences with potential new customers.

Example : After a wildlife safari in Kenya, the tour company could invite guests to join a Facebook group where they can share photos, stories, and tips with other customers and future travelers. This platform could also feature wildlife conservation news and updates on animals they saw during their safari.

Enhancing Customer Service with Ticketinghub's Innovative Features

Discover the power of Ticketinghub to revolutionize your tour operation's customer service! With its intuitive and feature-rich platform, Ticketinghub becomes an invaluable asset for any tour operator looking for excellent customer service.

• Streamlined Booking Process : Ticketinghub's  easy-to-use  booking system simplifies the reservation experience, ensuring a smooth and hassle-free process for clients.
• Real-Time Updates and Notifications : Keeps travelers informed with automated updates, enhancing communication and reducing confusion.
• Personalized Experience Management : Offers the flexibility to tailor bookings to individual preferences, providing a more personalized experience for more customer satisfaction.
• Enhanced Operational Efficiency : Streamlines your tour operations, allowing for more focus on customer interaction and satisfaction.
• Competitive Edge in the Market : By integrating advanced features of Ticketinghub, tour operators can stand out in the market, providing exceptional customer service.

In conclusion, the world of tour and activity businesses is ripe with opportunities for innovation and creativity. By implementing these 10 out-of-the-box tips, you can offer more than just a tour—you can provide an experience that is as unique and memorable as your destination itself.

Remember, in our travel and hospitality industry now, it's not just about the sights—it's about how you make your guests feel. So, take these ideas, adapt them to your unique offerings, and watch as your tours transform into unforgettable journeys.

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How Tour Operators Can Enhance the Customer Experience

The customer experience is arguably one of the most important parts of customer retention. In fact, 80% of consumers switch brands because of negative customer service experiences. Additionally, Forbes reports that 58% of people are willing to pay more for good customer service. 

The stats speak for themselves. People are willing to spend more money for a positive customer service experience. This highlights the importance of excellent customer service when it comes to both maintaining customer loyalty as well as attracting new customers. 

This is especially true when it comes to the travel industry because of how competitive it has become. Stats show that the worldwide travel market is set to grow by nearly double in the next three years alone. 

Don’t let the competition intimidate you, though. This blog will highlight how to improve customer service in a travel agency. 

Why an Excellent Customer Experience is Vital for Tour Operators

In the travel industry, providing a high-quality customer experience is especially important to the customer journey (no pun intended).

As the travel industry shifts to an online-centric model, customers have more choices than ever before. One of the best ways to get a leg up on the competition and stand out in the crowd is by providing amazing customer experiences. 

Remember, the travel customer’s journey with a tour operator begins long before they depart on their trip, and continues long after they return home. This is why tour operators must provide clear and timely communication from the get-go. This extends to responding promptly to any issues or concerns that may arise throughout the entire customer journey. 

Communication is an important piece of the puzzle, but tour operators must also ensure that the trip itself meets or exceeds customer expectations. 

Overall, providing an enhanced customer experience is vital for tour operators as it helps to increase customer satisfaction and loyalty, which in turn leads to repeat business and positive word-of-mouth recommendations. In fact, 60% of customers who feel loyal to a brand will tell family and friends about it.

Not sure how to improve your customer experience? We’ve got you covered.

4 Ways to Enhance Customer Experience

1. understand your customers.

Implementing a positive tour operator dynamic with customers starts with understanding your target audiences’ needs and preferences. Using research and customer data is a great way to identify what a tour operator customer is looking for in a customer experience and in a trip so that you can cater to those needs. 

Some ways to do this can include conducting customer surveys , analyzing customer feedback and reviews, and studying customer behavior data. By understanding your customers and what they want, you can tailor your services and offerings to better meet their expectations and needs.

You can also use customer data to personalize interactions and shape experiences to fit each individual customer. This can include things like sending personalized emails or offering customized trip itineraries based on collected data.

Another way to provide excellent customer service is by making sure that your travel agent customer service team is well-trained and equipped to handle any issues that may arise. This includes providing clear communication, as well as being responsive to tour operator customer concerns.

Continuously improve your tour operator’s customer service by consistently gathering customer feedback and using it to better the customer experience. This can include making changes to your website, booking process, or trip offerings. Additionally, seek out new ways to enhance the customer experience, such as offering additional services or incorporating new technologies.

2. Empower your agents

Empowering your agents is a crucial aspect of providing an enhanced customer experience. After all, your agents are the front line of customer service, and if they are not equipped with the right tools and resources, it can negatively impact the customer experience. 

Let’s review some of the ways to empower your agents:

• Provide them with the right tools: Equip your agents with the necessary tools and technology to automate their day-to-day manual work, so they can focus on providing excellent customer service. This can include things like customer relationship management (CRM) software, chatbots, and holistic travel ERP solutions that automate most of their manual work.
• Give them access to training and development opportunities: Continuously provide your agents with training and development opportunities to help them improve their skills and knowledge. This can include training on new technologies, communication techniques, and customer service best practices.
• Encourage creativity: Encourage your agents to bring creativity to their work by giving them the freedom to come up with new ideas and solutions. Have fun with it! Giving agents creative freedom can lead to better customer service and more efficient processes, not to mention more exciting travel products.
• Provide a positive work environment: Create a positive work environment that promotes employee satisfaction, work-life balance, and stress management. This can lead to happier and more motivated agents who are better equipped to provide excellent customer service.

By empowering your agents, they will be able to provide better customer service, improve customer loyalty and reduce customer complaints. It also helps to reduce employee turnover and increase employee morale, resulting in a better overall customer experience.

3. Invest in excellent technology

Investing in excellent technology is essential for enhanced customer experience in the travel industry. The right travel tech can automate day-to-day tasks, empower your agents, and provide critical touchpoints with customers throughout their entire journey. 

Here are some ways that the right technology can enhance customer experience:

• Automation: Automation tools can help to streamline processes and free up your agents’ time, allowing them to focus on providing excellent customer service. This can include things like automated email and message reminders, both for online and mobile.
• Personalization: Personalization technology can enable you to tailor your interactions with customers and accommodate the experience to fit their individual needs and preferences. This can include things like sending dynamic proposals so the customer can customize their trip before booking, personalized trip itineraries, and customized marketing campaigns .
• Communication: Communication technology can help to improve the customer experience by providing straightforward, prompt, and efficient communication throughout the customer journey. This can include things like chatbots, messaging apps, and automated email systems.
• Analytics: Analytics tools can help you to track and analyze customer behavior and feedback, allowing you to make data-driven decisions about how to improve the customer experience. This can include things like customer surveys, social media monitoring, and web analytics.

Investing in the right technology can help tour operators improve travel agency customer service and provide customer satisfaction, increase customer loyalty, and stand apart from competitors. It also makes the customer journey more seamless, efficient, and enjoyable for all parties involved.

4. Nurture your relationships

Every relationship needs nurturing, and customer relationships are no different. You want your customers to know that you care.  

Nurturing customer relationships is an important aspect of an enhanced customer experience in the travel industry. Building a positive and lasting relationship with customers can lead to increased customer satisfaction, loyalty, and repeat business. 

Some of the best ways to nurture customer relationships are:

• Follow-up: Follow up with customers after their trip to ask for feedback to learn about their experience and find potential areas for improvement. Use this feedback to work on the customer experience and make any necessary changes.
• Reward loyalty: Reward loyal customers with special offers, discounts, or exclusive experiences. This can help to build trust and strengthen the relationship. Who doesn’t love some good old positive feedback?
• Stay in touch: Stay in touch with customers even when they are not actively booking a trip. This can be done through regular newsletters, email campaigns, or social media updates.
• Use technology: Use technology to help you nurture customer relationships. For example, you can use customer relationship management (CRM) software to keep track of customer interactions and preferences or use automated email campaigns to stay in touch with customers.

By nurturing customer relationships, tour operators can improve customer loyalty and build a positive reputation. It also helps to create a sense of trust and reliability, which is crucial in the travel industry where customers rely on tour operators to plan and execute their trips.

Tour operators, prepare for take-off

It is more important than ever for tour operators to ensure an excellent customer experience because of how competitive the industry has become. With the rise of online travel booking platforms, customers have more options than ever before, and they are less likely to tolerate poor service or subpar experiences. 

Additionally, social media has made it easier for customers to share their experiences with others, which means that a negative experience can quickly spread and harm a tour operator’s reputation. 

At the end of the day, to stay competitive, tour operators must focus on providing exceptional customer service and creating memorable experiences that will keep customers coming back time after time.

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How to provide great customer service in the travel and hospitality industry.

The travel and hospitality industry has undergone a massive upheaval over the last year and a half. The major boom that the industry saw towards the start of the previous decade was hugely overturned by the coronavirus pandemic. 

Data from the US Travel Association found that in 2020, the travel sector lost $492 billion compared to 2019. That’s a 42% annual decline! Further, international travel spending fell 76%, and corporate travel spending fell 70%.

Being the worst-hit industry since the crisis, sadly, many travel and hospitality businesses had to shut down their operations. The ones that did survive are at long last seeing some hope of recovery owing to the global vaccine rollout.

A study by Tripadvisor found that more than 77% of global travelers are likely to travel internationally, and 86% of them are likely to travel domestically if they receive the vaccine.

But, consumers are extremely apprehensive about safety and cleanliness. There is a 10.2% increase in negative reviews in the hospitality industry. So, companies need to go out of their way to reassure them with their honesty, transparency, and impeccable customer service . It is important that they focus on customer engagement and building trust.

In this post, we’ll help you understand why excellent customer service is so important in the travel and hospitality industry, and what it takes to deliver the same, especially during such turbulent times.

Table of Contents

Why great customer service is important for a successful travel and hospitality business today.

Modern travelers are tech-savvy, demanding, and empowered . They want to be able to book their travel with incredible ease. Research suggests that 57% of them want a single app for all their planning, booking, and travel needs. 

Naturally, when it comes to customer service too, travelers want to use channels of their choice to get their issues resolved quickly, fairly, and with minimal hassle. Travel agencies that are able to meet these expectations are the ones that will likely increase their customer satisfaction and earn themselves a loyal customer base. Utilizing services like Visa Fly can streamline the travel planning process, ensuring a smooth experience for customers.

According to a study published in Harvard Business Journal , airlines that responded to a customer’s Tweet in five minutes or less were likely to earn $20 more from that customer on a future airline ticket. 

Another study by Think with Google found that great customer service is the most compelling factor of consideration for high-value travelers. 60% of them say that when choosing a brand to travel with, their customer service matters most to them. 

For 50% of those high-value travelers, online reviews and word-of-mouth matter. Brands that offer travelers great experiences are most likely to earn stellar online reviews.

Travelers love sharing their experiences with travel companies, publicly. In fact, research from Stackla found that:

Today’s traveler isn’t one to take things at face value. They will do their own research, and compare options before making a well-thought-out and calculated choice for the right travel partner. Now, more than ever, customers are willing to do business only with travel companies that they can trust.

And that’s why providing personal and meaningful customer service has become critical for travel businesses today.

Some customer service best practices for the travel and hospitality industry

To say that the travel and hospitality industry has experienced a shift in recent times would be an understatement. If your travel company wants to stay ahead of the curve, you need to rethink your old ways. You need to adopt a customer-focused approach to culture and strategy. 

The travel and hospitality industry might see another boom soon enough. But, to be able to handle that well and make the most of it, companies must not only ensure they have their basics covered, but also offer customers what their competitors don’t.

Good customer service can be a that big differentiator.

Keeping that in mind, we’ve listed down five essential best practices for companies that want to deliver quality service in the travel and hospitality industry:

1. Save customers their time, and make the booking process simple

One of the most important aspects for customers when deciding on a travel and hospitality partner (apart from price, of course) is the time you can help them save on planning, researching, and booking their travel.

Many travelers, especially those traveling on business, appreciate a swift and simple booking process. In fact, they’re happy to pay more for such an excellent customer service experience.

Research suggests that 62% of consumers are willing to pay a higher sum for a simple experience, and 61% would recommend a brand if it has a clear proposition that saves them time.

Hilton’s ‘Stop Clicking Around’ campaign is a great example of the above. Through the campaign, the brand encouraged its customers to “stop clicking” through numerous websites and waste hours of their time. Instead, they asked them to book directly through Hilton’s website and enjoy the best price.

The result? The hotel earned 4.5 million bookings worldwide attributed to the campaign. That’s the value they received for valuing their customers’ time.

2. Be proactive with your communication, and swift with your resolutions

Traveling and accommodation have always been very anxiety-inducing for many people. With the pandemic having wreaked havoc, hotel guests are now more concerned about their safety than they’ve ever been before.

According to a recent research study from PwC , 85% of travelers said their travel decisions will depend on communications they receive from hotels and airlines about safety. Further, 40% of them said they’re unsatisfied with the current communication they’re receiving from travel companies about safety protocols.

That’s why proactive data-driven communication about safety protocols, cleanliness, and sanitization should be a critical part of hotel management today. It’s hugely important that airlines and travel companies also proactively communicate important updates including travel advisories, delays, cancellations, etc.

Further, when customers reach out for help, tour operators must make it a practice to resolve their problems as quickly and satisfactorily as possible. According to Hiver’s Customer Service Benchmark Report , almost 50% of companies promise their customers a resolution time of below 6 hours.

Investing in an intuitive help desk solution is a sure-shot way to ensure a such fast resolution.

Let’s take the vacation rental company Vacasa’s case study as an example. The company was earlier using Google Groups to handle all customer service emails. Communication within the team was restricted to sending back-and-forth emails. As a result, it was slowing down their query resolution process.

By implementing Hiver, a Gmail-based customer support software , the team was able to define clear accountability for every member. What’s more, they were also able to have contextual discussions about every customer query using Hiver Notes – all without the hassle of CCs and forwards. 

As a result, the team saw an 80% improvement in their average resolution time. You can check out their entire story here .

3. Be present wherever your customers are

Today, customers use multiple devices and channels at once to connect with brands. And, they expect those brands to seamlessly communicate with them across each of those devices and channels. 

For example, if a customer enquires about a specific holiday package on your travel company’s social media, they expect a consistent response and experience when they reach out to you about the same query on chat or email.

Travel companies need to therefore invest in systems that allow them to integrate all of their key channels where their customers are present. 

Brands also need to offer customers options to easily connect with them using devices of their choice. They can do this by adding click-to-call buttons on prominent parts of their website, tablet, and mobile applications.

Further, companies must ensure that at every touchpoint, they update customers with the relevant and latest information about their travel. They can proactively communicate these updates via text, email, voice, etc.

KLM Airlines takes this proactive communication approach to the next level with its ‘ Family Updates ’ service. Apart from sending real-time WhatsApp updates to travelers about their trip, the airline also updates travelers’ families and friends about their departure, arrivals, delays, cancellations, etc. What a simple yet thoughtful way to delight customers!

4. Offer deep personalization

21% of travelers are more likely to leave a review after a negative experience at a hotel than a positive one. And, 35% of travelers would think twice before booking if they find more negative reviews than positive ones.

No surprises then that the travel companies that stand out are the ones that deliver experiences beyond what most others in the market are offering.

A study by American Express reported that 83% of millennials are okay with travel brands tracking their digital patterns if they get to enjoy a more personalized experience in return. The same study found that 85% of respondents across all age groups prefer customized itineraries over general, mass-market offerings. 

Investing in a good CRM solution is thus critical for travel companies as it offers a safe and organized repository of important customer information that they can use to personalize travel arrangements. This not only includes customers’ names, birthdays, anniversaries, addresses, and work profiles but also their interactions across a brand’s website or app and also  travel website development . 

Customer conversations are another useful source of relevant customer data. The past interactions customers have had with your customer care team can give you important cues into their travel preferences. This data can in turn help you craft unique, tailored, and memorable travel experiences for your customers.

Some travel companies are also leveraging technology to deeply personalize customer experiences.

For example, with British Airways’ ’Know Me’ program, customer service agents can easily identify who are their frequent flyers, high-profile flyers, and even first-timer flyers. Accordingly, this information helps them deliver personalized offers and services to customers – right from the time they book a flight to the time they land. 

Similarly, the implementation of the SG Arrival Card system enhances the travel experience by streamlining the entry process into Singapore, demonstrating the importance of efficient and user-friendly digital solutions in modern travel and hospitality services.

United Airlines’ ‘Collect, Detect, Act’ system uses artificial intelligence to analyze 150 variables in customers’ profiles. This data helps them determine travelers’ unique preferences, and craft tailored offers for them. 

This system has helped increase United Airlines’ revenues by over 15% year on year.

5. Ensure your agents are well-trained and motivated

So far into this article, we’ve seen how important leveraging technology is in order to give customers the kind of experiences they want.

But technology, no matter how cutting-edge or expensive, is nothing without the human touch .

Unless you have a team of skilled, adept, and motivated agents and hotel staff to execute your customer service strategy, the guest experience is bound to suffer.

Hiring the right people is only the beginning. The travel and hotel industries are hugely dynamic. You need to make sure that your staff members are up-to-date with the changing nature of customer expectations and the increasing importance of customer service.

It’s the only way your brand can deliver meaningful customer experiences, consistently.

Ensure all your staff members undergo industry-specific customer service training programs. Apart from this basic training on customer service skills, you should also provide brand and product training. This will help them successfully tailor your brand’s offerings to suit customers’ needs, and even upsell and cross-sell at the right opportunity.

You could even provide your customer service team with incentives to upskill, voluntarily. The International Air Transport Association (IATA) offers some really good courses that you can encourage your agents to take up.

It’s also important to note that the travel and hospitality industry is rife with demanding customers and high-pressure situations. Empathizing with customers becomes the key to providing great customer service. Also, make sure you equip your agents with the right tools and skills to handle the same.

Wrapping up

The travel and hospitality industry might still be stumbling its way back to normalcy right now. However, one thing is for certain – it’s bound to bounce back in a bigger and better way.

Even if the demand isn’t the same as it was pre-pandemic, travel companies should prepare for the major surge in bookings that experts have predicted in the near future.

Now is the best time for brands to focus on fixing what’s broken in their customer service strategy. 

A good way to start is by creating a customer journey map . It’ll help you identify how customers interact with your brand at every touchpoint, and what you need to do better to improve their experiences across their journey.

Your journey map, for example, may help you understand that your customers have an inconsistent experience across the pre-purchase and purchase stage. It might then make sense for you to focus on breaking down silos between your marketing and sales departments.

At the end of the day, customer service shouldn’t just be a function but an org-wide mission. Travel and hospitality brands that understand that, and adapt their overall strategy accordingly, are ones that will thrive in these times.

Resources you’ll love:

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How to delight your customers with next level customer service

As the internet continues to take hold of the travel industry and offer travelers cheap DIY options, it’s becoming more and more important for tour operators like yourself to differentiate your offering from your competitors. Exceptional customer service is a great way to keep your business associated with the tailor-made goodness that you’ve worked so hard to build into your itineraries.

So whether you’re already focussing on customer service and just want to take it up a notch, OR you’re just starting out – we’ve put together our favourite tips and advice when it comes to customer service for tour operators.

1. Keeping customers matters

Most businesses have two types of customers: new business and repeat business. Suprise, surprise…tour operators are no exception to this rule.  So, while attracting new customers is key to expanding your business, retaining and growing your existing customers is 5 times cheaper than acquiring new ones ,  according to Invesp.

To make matters even better, the same study revealed that your existing customers are 50% more likely to try a new product and will spend on average 30% m ore than a new customer would. What’s the secret recipe, you may ask? It’s loyalty.

Building loyalty with your existing customers is what makes them stay, makes them spend more, and is what drives them to want to tell their friends and colleagues about YOU and your awesome company! Focusing on customer service is one of the best ways to ensure that you’re building loyalty that will last a lifetime.

2. It’s the small things that matter

For those of you that deal with travellers from all around the globe, taking time to learn greetings and basic phrases in their first language is a great way to show you care about them and about the place they come from. To start, why not find a private tutor on Superprof who can upskill your team on a language, your customers will love the special touch, and it’s a great team bonding activity too.

Excellent customer service doesn’t always necessarily mean you have to go to extravagant measures to please and delight your customers. Even the smallest gestures like taking the time to learn your customer’s names and personal interests will help them feel valued.

Although these personal touches are lovely, when you’re dealing with hundreds of travelers these sorts of relationships can be difficult to maintain. Lucky for you it’s 2018 and there are some fantastic solutions available to make building connections a little more manageable.

For example, using a tour operator software with built-in CRM (customer relationship management) functionality will mean all of those small and important details can be captured and stored in a central location. When it comes time to reconnect with one of your customers you can easily pull up all of their information such as activities they prefer, allergies and any other special requirements.

To understand a little more about good CRM practice check out this helpful article .

3. Price isn’t everything

If you’re a tour operator that focuses on service it’s important to remember that your customers and potential  customers may not be as concerned with price as you may think. Often a  knee-jerk response to wanting to please customers is to discount. However, an American Express Global Customer Service survey found that customers in a number of different markets (including Australia, the US, UK and Canada) valued customer service over and above price.

The same American Express survey found that the majority of customers around the globe have and will back away from a sale if they are met with even one instance of under par customer service. So, if you decide as a business that customer service is going to  be your leading point of difference then it is equally important to put checks and processes in place to ensure your service standard is upkept.   A basic rule of thumb is to set the standard early on and ensure that it’s maintained throughout your customer’s journey with you.

4. Repeat customers will make your accountant happy!

Long story short, good customer service will keep your customers coming back. As we discovered earlier, those repeat customers cost 5 times less to retain than acquiring new customers, which is a big plus for your bottom line.

Losing customers can be even more costly to your business. According to Entrepreneur.com, lost customers as a result of poor customer service cost businesses US$83 billion every year . Making sure you don’t fall into that category will help keep your business cash positive and ultimately keep your accountant happy. It’s a win-win!

5. Make things easy

Taking it a step further and delighting your customers with things that they didn’t even know they wanted is a sure way to strengthen that relationship even further. Providing them with online accessible itineraries that you can update in real-time if something changes, going the extra mile and providing them with local knowledge or even recommending a great restaurant will make your customers’ travels more fulfilling.

Going above and beyond can sometimes feel like a burden that is taking away precious time you could be spending on other customers. In fact, this is one of the very reasons we were inspired to create Tourwriter . By using tour operator software you can slice hours off other more menial tasks like quotes, bookings, and itinerary creation and reinvest the time saved in serving your customers better. Growing your business through customer loyalty and those all-important, sought after, referrals.

How does the travel industry actually work?

Who are the key players in the industry, where do they all fit together and how does the industry actually work?! There’s no doubt that the travel industry is a confusing space to wrap your head around so we’ve broken it down for you in this easy new resource.

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• Be A Better Guide is now Guest Focus

How to Give Amazing Customer Service – Examples and Tips

• February 20, 2022

Exceptional Customer Service can come in many forms.

As a tour guide or tour operator, you want to be taking care of your customers as much as possible, but how do you give amazing customer service? Well, it is an enormous topic, and one we will revisit many times here at Be a Better Guide!

In this video, I thought I would give you three concrete tips and examples, just to give you a sense of what great customer service can look like. Think of it as some inspiration as we continue to grapple with giving top notch service and incredible tours.

Share this video if you know someone who might appreciate it and have them join the conversation!

Finished Watching?

I know so many of you are incredible guides – how do you deliver amazing customer service? Share your examples below to inspire the community!

Transcript:

Kelsey Tonner here from beabetterguide.com, and I have gathered you from far and wide this week to talk is about over-the-top service.  I got three stories that will hopefully inspire you.

Tackle your guest’s frustrations before they even happen. I was leading a bicycle trip. I was actually here in Nova Scotia.

We’ve talked about the rain in Nova Scotia before on the site. What was happening was it was multiday trip, so their bike shoes and socks, everything, were wet when they got in.

So, as fellow guide, wasn’t my idea but super inspired him, came out with a big stack of newspapers. He got them from the reception.

As people arrived into the hotel, they biked into the hotel, he would collect their bike, and then give them this piece of newspaper, you know, a full newspaper and say, “Here’s what you need to do if you want dry shoes tomorrow. Stuff the newspaper in before dinner.

When you come back, take wet newspaper out, more dry newspaper in. And your shoes will be dry for tomorrow.” This is an example of incredible service because it shows that you are taking great care of them and you’re thinking about them and their future frustrations.

Use small acts of personal kindness whenever able to delight your guests. So an example was on a trip in France the group had gone in and done some shopping.

And one woman had missed out for some reason and everyone came back with these little artisanal mustard that was super delicious. She was really disappointed, “Oh, shoot. I wish I got one of those.”

There wasn’t any time before the trip was over and she just had to go back to Paris, I believe. So, like my fellow guide and I went and had that time to go to the store, just quickly buy a little something.

We wrapped it up, put a little note on it, and actually secretly slipped it into her suitcase as she was departing and heading back to Paris.

Now, of course, we got a really, really nice thank you notes from her, got rave reviews, she even wrote a note into our company saying how incredible we were.

know you can’t do this for every single guest, but those small acts of kindness will create the people who will be your biggest fans on Trip Advisory. It will be most likely treat for you to all their friends and family.

Try and take care of your clients even when they don’t know about it. So, this example comes from one forgetful guest when we were transferring hotels on a three- or four-day trip, and they’d forgotten some expensive jewelry actually and a sweater in the room.

So, the guest didn’t even know about it. But the hotel called us and we made some arrangements to get that stuff delivered to the next hotel. I think a staff member was coming through.

It was a fairly simple fix. But the key was then we were able just to show up and say, “Oh, hey, Julie. We just found your stuff. We’ve made all the arrangements to get it here and we just want to make sure it got back to you okay.”

That sort of stuff wins big points and it’s an example of incredible customer service because you’re taking care of them even when they don’t know it’s happening.

So those are three quick ways that you can give over-the-top service. There are so many out there and I know so many of you are incredible tour guides, tour operators.

Let me know in the comments what sort of things you’ve done for guests in the past that have scored you great, great brownie points, like the top of your service game. I want to hear about them. Share this video if you’re inspired and thanks for being here.

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In this blog post video, we’re going to talk about bonuses and extras and how you can use them on your tour sales pages to differentiate yourself from your competitors, create fear of missing out and go that extra mile with your ideal target guest.

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Comprehensive Guide to Managing a Tour Business

By Rezdy — 14 Sep 2023

1. The importance of managing a tour business efficiently

2. target market, 3. value proposition, 4. marketing plan, 5. customer service, 6. staffing, 7. financial management, 8. risk management, 9. legal compliance, 10. reporting and analytics, 11. summary.

As you embark on the journey of starting a tour business , it’s crucial to understand the importance of managing it efficiently. That’s where the power of our tour business operations ultimate guide comes in.

By following our tips and tricks when managing tour operations, you can ensure that your travel business runs smoothly and successfully.

In our tour business operations definitive guide, we will delve into key areas that will help you make informed decisions and run your business effectively.

1. The importance of managing a tour business efficiently

Regardless of which tour operation type you choose, efficiently managing a tour or activity business is crucial for its success and sustainability. Effective management ensures smooth operations, timely customer service, and streamlined processes, ultimately leading to enhanced customer satisfaction. By optimizing resource utilization and minimizing operational inefficiencies, the business can achieve better profitability and allocate resources towards growth and expansion. Efficient management also allows for quick adaptation during unexpected situations or crises, maintaining the business’s reputation and customer trust.

Let’s take a closer look at the key areas that will be covered in this complete guide to successful tour guide management:

• Target Market: Identifying and understanding your target audience is the foundation of your business strategy.
• Value Proposition: What sets your tours apart from the competition? Your unique selling points will attract customers.
• Marketing Plan: Developing a well-rounded marketing strategy is essential for reaching and enticing potential customers.
• Customer Service: Exceptional customer service will lead to customer satisfaction and positive reviews.
• Reporting and Analytics: Analyzing data will provide valuable insights to improve your business.
• Risk Management: Identifying and addressing potential risks will safeguard your business.
• Financial Management: Sound financial practices will keep your business on track.
• Legal Compliance: Understanding and complying with relevant laws and regulations is crucial for smooth operations.
• Staffing: Building a competent and motivated team is essential for delivering outstanding experiences.

2. Target market

Understanding your target market is the foundational pillar for successful travel agency and tour operations management. The target market represents the specific group of people who are most likely to be interested in and benefit from the tours and experiences your business offers.

Defining your target market

The first step in understanding your target market is to clearly define the characteristics of your ideal customers. This involves considering various aspects of your potential clients, such as:

• Demographics
• Interests and Hobbies
• Preferences and Expectations
• Pain Points and Needs

Conducting market research

Market research is an essential tool to gain valuable insights into the industry, target market, and your competitors. It helps you make informed decisions and develop effective business strategies. Consider the following steps when conducting market research:

• Industry Analysis: Study the tour and travel industry, both at the local and global levels. Identify trends, opportunities, and challenges that could impact your business.
• Target Market Analysis: Use surveys, focus groups, or online research to gather data about your potential customers. Analyze the collected data to gain a deeper understanding of their preferences and behaviors.
• Competitor Analysis: Identify your main competitors and analyze their strengths, weaknesses, pricing strategies, marketing efforts, and customer reviews. This analysis will help you position your business effectively in the market.
• Demand Analysis: Assess the demand for tours and experiences in your chosen location(s). Understanding the demand patterns and seasonal variations will help you plan and optimize your offerings throughout the year.

Communicating to your target market

Crafting effective marketing messages is crucial for reaching and engaging your target audience. Consider the following tips when communicating with your potential customers:

• Tailor your Message: Use the insights from your target market analysis to customize your marketing messages. Address their specific interests and pain points, showcasing how your tours can fulfill their needs and desires.
• Use the Right Channels: Identify the most effective marketing channels to reach your target market. This might include social media, email newsletters, travel websites, or collaboration with local businesses.
• Highlight Unique Selling Points: Emphasize what sets your tours apart from others in the market. Whether it’s exclusive experiences, expert guides, or sustainable practices, highlight the unique selling points that will resonate with your target audience.
• Build Trust: Establish trust with your potential customers through transparent communication and genuine customer reviews. Trust is crucial in the tour business, where people entrust you with their travel experiences and memories.

3. Value proposition

Your value proposition is the essence of your tour business—it is the unique combination of benefits and experiences that sets you apart from competitors and persuades customers to choose your tours over others. Developing a compelling value proposition is crucial for managing tour operations, capturing the attention and interest of potential customers, ultimately driving bookings and building brand loyalty.

What makes your tours unique?

To create an impactful value proposition that aligns with your travel and tour operations management, it’s essential to identify and highlight the key features and experiences that make your tours truly stand out. Consider the following aspects:

• Exclusive Experiences: Showcase any exclusive or hard-to-access experiences that your tours offer. Whether it’s access to private locations, behind-the-scenes tours, or unique encounters with local cultures and wildlife, emphasize the extraordinary moments your customers can enjoy.
• Expert Guides: If your tours are led by knowledgeable and passionate guides, highlight their expertise and how they enhance the overall experience. Having guides who can share fascinating insights and create a personalized journey for each customer adds significant value to your tours.
• Tailored Itineraries: Emphasize the flexibility and customization options available in your tours. Whether you cater to specific interests, age groups, or travel preferences, communicating that your tours are designed to suit individual needs will resonate with potential customers.
• Sustainable Practices: If your tours prioritize sustainability and eco-friendly practices, make sure to highlight this aspect. Many travelers today seek responsible and environmentally conscious tour options, so showcasing your commitment to sustainability can be a powerful selling point.

Communicating your value proposition

Effectively communicating your value proposition is essential to attract and engage potential customers. Use clear and concise language that highlights the unique aspects of your tours. Consider the following communication strategies:

• Compelling Website Content: Ensure that your website clearly communicates your value proposition on the homepage and throughout key pages. Use engaging visuals and captivating copy to illustrate what makes your tours special.
• Engaging Social Media Presence: Leverage social media platforms to showcase the unique experiences your tours offer. Use images, videos, and customer testimonials to create an emotional connection with your audience.
• Captivating Marketing Collaterals: Design marketing materials, such as brochures and flyers, that effectively convey your value proposition. Include the most compelling features and experiences to entice potential customers.
• Personalized Email Campaigns: Segment your email lists and send personalized messages to different customer groups, highlighting the aspects of your tours that align with their interests and preferences.

Highlighting the benefits of your tours

Apart from showcasing the unique features, it’s equally important to highlight the benefits that customers will gain from choosing your tours. Benefits appeal to customers’ desires and needs, making them more likely to take action and book with your business. Some benefits to emphasize include:

• Unforgettable Memories
• Stress-Free Planning
• Cultural Immersion
• Time Optimization
• Group Bonding

4. Marketing plan

A well-defined marketing strategy is essential for promoting your tour business effectively and reaching your target market.

Setting marketing goals

Before implementing any marketing initiatives, it’s crucial to set clear and specific marketing goals. These goals will serve as the foundation for your entire marketing strategy and will help you measure the success of your efforts. When setting marketing goals, consider the SMART criteria: Specific, Measurable, Achievable, Relevant, Time-Bound.

Marketing channels

Selecting the right marketing channels is critical for effectively reaching and engaging your target audience. Different channels cater to different customer segments and offer unique ways to showcase your tours. Consider the following marketing channels:

• Website and SEO
• Social Media
• Email Marketing
• Content Marketing
• Paid Advertising
• Partnerships and Affiliates

Pro tip: Your website is your primary marketing channel. To boost user experience, consider incorporating live booking availability .

Marketing budget and ROI

Allocating a budget for marketing is essential to ensure that your strategies can be executed effectively. Consider your marketing goals, target audience, and the channels you plan to use when setting your marketing budget. It’s essential to regularly monitor and analyze the performance of your marketing efforts to calculate the return on investment (ROI).

Evaluate the success of each marketing campaign and channel by tracking key performance indicators (KPIs) like conversion rates, cost per acquisition, and revenue generated. Analyzing ROI allows you to identify which marketing strategies are most effective and make data-driven decisions for future marketing allocations.

5. Customer service

Exceptional customer service is the cornerstone of a successful tour business.

Providing excellent customer service

Delivering excellent customer service starts with understanding and anticipating the needs and expectations of your customers. Train your staff to be friendly, attentive, and knowledgeable about your tours and destinations.

You can also use AI in tour management to further enhance your customer experience.

Responding to customers

Prompt and effective responsiveness to customer inquiries, feedback, and concerns is crucial for building trust and loyalty. Establish clear guidelines for responding to customer communications across different channels:

• Phone Calls
• Post-Tour Follow-Up

Pro tip: To save time and ensure a consistent customer experience, you may want to start automating communications .

Collecting feedback

Customer feedback is invaluable for improving your tour business and understanding how to better meet the needs of your customers. Implement a feedback collection system that allows customers to share their thoughts and experiences with your tours. This may take the form of online surveys, encouraging customers to leave reviews and testimonials, or monitoring social media channels for mentions of your tour business.

6. Staffing

The success of your tour business heavily relies on the competence, enthusiasm, and professionalism of your staff.

Recruiting staff

Recruiting the right staff members is the first step toward building a dedicated and capable team. When hiring and training tour guides , customer service representatives, drivers, and other roles, consider the following tips:

• Job Descriptions: Create clear and comprehensive job descriptions that outline the responsibilities and qualifications required for each role. Specify any necessary certifications, language skills, or experience needed for tour guides.
• Cultural Fit: Look for candidates who align with your company’s values and customer-centric approach. Cultural fit ensures that employees share your passion for providing exceptional service and representing your business positively.
• Industry Experience: Prioritize candidates with relevant industry experience, especially for tour guides who should possess in-depth knowledge of the destinations and activities you offer.
• Customer Service Skills: Emphasize the importance of strong customer service skills during the interview process. Your staff should be friendly, approachable, and adept at handling customer inquiries and concerns.

Training staff

Comprehensive training is essential to equip your staff with the knowledge and skills they need to excel in their roles. Provide a thorough orientation that introduces new hires to your company’s mission, values, and policies. Familiarize them with your tour offerings and the destinations they will be guiding.

For tour guides, conduct in-depth training on the itineraries, historical facts, safety protocols, and any unique aspects of each tour.

Managing staff

Effective management plays a crucial role in maintaining staff motivation, engagement, and performance. Consider the following management strategies:

• Maintain open and transparent communication with your staff.
• Conduct regular performance evaluations to provide constructive feedback, set goals, and identify areas for improvement.
• Implement a system of incentives and recognition for outstanding performance, such as utilizing Awards.com for custom trophies and awards to acknowledge and celebrate achievements.
• Organize team-building activities to foster camaraderie and collaboration among your staff.
• When issues arise, address them promptly and professionally. Provide support and resources to help your staff overcome challenges.
• Promote a healthy work-life balance.

7. Financial management

Effective financial management is crucial for the long-term sustainability and success of your tour business.

Creating a comprehensive budget is the foundation of sound financial management. A well-structured budget allows you to plan and allocate resources wisely. Consider the following steps when developing your budget:

• Revenue Projections
• Fixed and Variable Costs
• Contingency Funds
• Marketing Budget
• Investment and Expansion
• Regular Reviews

Tracking expenses

Accurate expense tracking is essential to understand where your money is going and identify areas where you can optimize costs. Prioritize record-keeping so you can maintain organized and detailed records of all financial transactions, including receipts, invoices and payroll documentation. Categorize expenses into different groups (e.g., marketing, payroll, maintenance) to easily analyze and identify spending patterns. To further streamline your financial processes, consider implementing the practice of creating a pay stub for efficient payroll management, enhancing overall record-keeping efficiency.

Staying profitable

Maintaining profitability is vital for the sustainability of your tour business. Here are some strategies to enhance profitability:

• Pricing Strategy: Review your pricing regularly to ensure it covers all costs while remaining competitive in the market.
• Upselling and Cross-Selling: Offer additional services or upgrades to customers during the booking process or on tour to increase revenue per customer.
• Cost Optimization: Continuously look for ways to optimize costs without compromising the quality of your tours.
• Repeat Business and Referrals: Focus on providing exceptional customer experiences to encourage repeat bookings and word-of-mouth referrals, which are more cost-effective than acquiring new customers.
• Analyze Profit Margins: Regularly review your profit margins for different tours and destinations.
• Financial Performance Metrics: Track key financial metrics such as gross profit, net profit, and profit margins to assess the overall health of your business.

8. Risk management

Strong risk management is critical for safeguarding your tour business from potential threats and uncertainties.

Identifying and assessing risk

The first step in risk management is to identify potential risks that could affect your tour business. Risks can arise from various sources, including external factors such as weather conditions, natural disasters, political instability, and economic fluctuations. Internal risks may involve operational issues, employee-related challenges, and financial uncertainties.

Risk mitigation

Once risks are identified and assessed, it’s essential to develop strategies to mitigate their potential impact. Risk mitigation involves taking proactive measures to reduce the likelihood of risk occurrence and minimize its consequences.

Contingency plans

Despite meticulous planning and risk mitigation, unforeseen events can still occur. Having contingency plans in place ensures that you are prepared to respond swiftly and effectively to unexpected situations.

9. Legal compliance

Adhering to laws and regulations is vital for operating a tour business ethically, responsibly, and without legal complications.

Understanding laws and regulations around tours

The tour and travel industry is subject to various laws and regulations at local, regional, and national levels. As a tour operator, you must be well-informed about these regulations to ensure compliance. Some key areas to consider include:

• Licensing and Permits
• Safety Standards and Guidelines
• Environmental Regulations
• Employment Laws
• Data Protection and Privacy
• Accessibility
• Insurance Requirements

Should you consider a legal team?

Navigating the complexities of legal compliance in the tour industry can be challenging, especially for small businesses. Hiring or consulting with a legal team or a qualified attorney specializing in the tour and travel sector can be beneficial.

If budget constraints are a concern, consider seeking legal advice through legal clinics, industry associations, or networking with other tour operators who may share insights and experiences related to legal compliance.

10. Reporting and analytics

Reporting and analytics play a crucial role in the success of your tour business.

Tracking tour performance

Tracking tour performance involves monitoring key performance indicators (KPIs) and metrics that provide an understanding of how your tours are performing. Some essential KPIs to track include:

• Booking and Sales Metrics
• Customer Satisfaction
• Capacity Utilization
• Customer Demographics
• Customer Retention

Pro tip: With Rezdy, you can use your tour booking software to analyze the above data with reporting and analytics .

Analyzing marketing data

Effective marketing data analysis helps you assess the performance of your marketing efforts and identify which strategies are driving the most success. Key marketing data to analyze includes:

• Use tools like Google Analytics to track website traffic, user behavior, and conversion rates
• Monitor engagement metrics on social media platforms, such as likes, comments, shares, and click-through rates.
• Analyze email open rates, click-through rates, and conversion rates to evaluate the effectiveness of your email marketing campaigns.
• Calculate the ROI for your marketing campaigns to determine which initiatives are delivering the highest return and adjust your marketing budget accordingly.
• Conduct A/B testing to compare different marketing strategies or messaging and identify which variations are most effective.

Acting on insights

Collecting and analyzing data is only valuable if you act on the insights gained. Use the information gathered from tour performance and marketing data analysis to make informed business decisions.

11. Summary

Remember, running a tour or activity business is not only about delivering memorable experiences but also about maintaining a strong foundation of effective management and strategies. With the right combination of passion, dedication, and sound business practices, tour operators can thrive in this exciting and rewarding industry.

At Rezdy, we understand the challenges and opportunities that tour operators face in the dynamic and competitive travel industry. Our robust tour management platform is designed to streamline your operations, optimize bookings, and enhance customer experiences. With Rezdy, you can effortlessly manage your inventory, automate bookings, and gain valuable insights from our comprehensive reporting and analytics tools.

Ready to take your tour business to new heights? Sign up for a free 21-day trial today and discover how Rezdy can transform your business.

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• OUR SOLUTIONS

Tour Operator Online Reservation Solutions

We have developed dynamic or traditional packaging systems for Tour Operators who want to merge their carefully planned products such as plane, hotel or cruise and enrich them with auxiliary service products.

With this solution that provides an opportunity for online sales, end customers and agencies can look into every kind of demand and combination. Tour Operator Online Reservation program, which we have developed by following the conditions and technologies of the developing market closely, presents a wider sales network for tour operators.

It also brings services and products such as plane, hotel, cruise, transfer, trip, travel insurance and car rental together with corporate (B2B) and end (B2C) customers; both separately and collectively. It serves tour operators with a management model that is comprehensive in managing content and makes sure that the products and services are always up to date.

Profitability, rising with technology

TOUR OPERATOR ONLINE RESERVATION SOLUTIONS , which are developed with the latest technologies in the sector, are prepared with the approach of SaaS (Software as a Service – Solution as a Service). This way, our customers can minimize operational costs and receive top-quality service with low costs whenever they want.

Why Tursys?

• We provide web-based applications, accessible anywhere with an internet source
• 24/7 professional technical support
• User-friendly, developed and effective backoffice services
• Fast and effective GDS and XML integration with Tursys Pool
• Latest technologies in the architecture of web and mobile applications
• Solutions that comply with the Software as a Service (Saas) business model

Improved Flight Inventory Management

Thanks to the web-based backoffice, the business we work with can use flight inventories in a fast and reliable manner. With all-around functionality and improved management techniques, they can increase their earnings systematically with solutions of allotment, pricing and flight timetable planning on short and long term. They can easily combine their identified flights with the hotels in the inventory.

• Choosing flights on the basis of charter or allotment
• Defining flights separately and serially
• Pricing in accordance with the flight, option of periodical or seasonal pricing
• Creating alternative flight classes and different pricing application
• Practical definition of flight taxes and charges
• Opportunity to determine prices gradually/dynamically (Economical, Flex, Premium etc.)
• Defining multi-leg and intermediate-landing flights
• Allotment notifications for agencies, operators or flights
• Classification/pricing in accordance with operators and agencies
• Option of identifying guaranteed and pro-rata allotment
• Chance to provide release in accordance with the operators and agencies
• Automatically sending PNL to to airlines, representatives, ground services or airports on IATA standards
• Chance to create a voucher with an original design
• Income and expense management

Improved Hotel Inventory Management

Our customers have the convenience of determining their hotel inventories in accordance with their daily and periodical needs. Also, the hotel documentation and visual update processes can be controlled via our content management panel that is available for practical use. Web-based backoffice service allows momentary revisions in the background.

• Advanced content management system (CMS)
• Listing hotels in accordance with various sub-categories (location, stars, concept, room type, room features etc.) in the content management system
• Multiple languages in the content management system
• Identifying hotel accommodations on day base, period base or arrangement (e.g, identifying a 3-day price as a single price)
• Allotment entry in accordance with the agency
• Allotment management, stop sale, deadline (release) determination
• Defining hotel contracts with their costs
• System entry of the suppliers
• Uploading and easily managing hotel visuals in accordance with the sales channels (B2B-B2C)

Improved Cruise Inventory Management

Our business partners shape their cruise inventories in accordance with their periodical needs. Also, thanks to the "Special Package" solution, they can combine other additional products that provide various conveniences. Our comprehensive CMS management panel controls whether if the cruise visuals are up to date. Web-based backoffice service allows momentary revisions in the background.

• Listing cruises in accordance with various features (geographical region, country, cruise company, floor, concept, room type, room features etc.) in the content management system
• Multiple languages in the content management system (CMS)
• Periodically defining cruise accommodations
• Allotment notification in accordance with the agency
• Identifying cruise contracts with their costs
• Supplier entry
• Uploading and easily managing cruise visuals in accordance with the sales channels (B2B-B2C)
• Feature of combining additional products

Dynamic Packaging

Our users have the privilege of combining the plane, hotel (or cruise) and transfer (if necessary) services within the inventory.

• Displaying the total fee resulting from the combination
• Feature of adding the plane links in XML format

Package Tour

This traditional package solution prices the flights and hotels that have been previously identified to the inventory of our clients as a single product under the "package tour" name.

• Convenience of combining flight and hotel options in accordance with the desired combinations
• Presenting the defined flights and hotels at a single price
• Transfer adding option

Special Package

Special Package service plans travelling in a detailed and dynamic manner. Flights, hotels or cruises can be combined with products such as private transfer services, trips at the vacation spot, travel insurance and car rental. This way, services and products are combined into an exclusive product package.

• Private transfer (VIP services, escort, public transport etc.)
• Travel insurance
• Additional services (Museum, excursion and tours, special training, various couses, concerts etc.)

Sales And Distribution Channels

With solutions that are in line with the target audience and the desired business models, our customers have the opportunity to make comprehensive and flexible e-commerce. They can conduct their business either by getting into direct contact with the end consumer (B2C) or in the structure of an agency, tour operator or consolidator. As Tursys, we present the wide product range and inventory of the Tour Operator to online travel agencies through GDS and certain distribution channels. We make sure that our customers save time and labor by using a fast and effective method with the Tursys Pool integration.

• Agency and sub-agency management (B2B)
• Final consumer (B2C) web site
• Chance to prepare a promotion/campaign
• Multi-GDS support
• OTA XML integration

Accounting And Methods Of Payment

It is very important to reflect each product separately or collectively (package) with a simple and clear management panel by taking product range into account. The accounting system that we present in the scope of Tour Operator Online Reservation Solutions can be shaped towards the needs of our customers and integrated to external general accounting systems. Banks and intermediary institutions can be contacted and current payment models can be connected locally and abroad in a fast and reliable manner; the remaining local needs are developed in the light of the proper documentation.

• Integration to general accounting systems
• Invoice tracking and automation
• Multiple currencies
• Credit Cart and Debit Card (SOFORT)
• Online banking (IDEAL)
• Credit and current account
• MCO working model

Original Web Design

We fulfill the needs and demands of our customers by using the latest technology in the web/mobile application architecture and strengthen their businesses with easily manageable and dynamic designs. In parallel with the growth data of our solution partners, we conduct indexing in accordance with the criteria of the search engine and support their usage of social media.

• Visionary and original web site design and programming
• Faultlessly transmitting the site content to mobile and tablet devices with responsive web design
• Search engine optimization module (SEO)
• Improved content management (CMS)
• Chance to develop a mobile app (IOS, Android)
• Multiple language support

The statistics are very important in terms of planning the future of a company. Our programmable, effective and automatic reporting system that is in line with every demand and our capacity of presenting the reports in the desired format make daily work much easier.

• Flexible and automatic reporting
• Detailed transfer report
• Sales reports that belong to the customers' own inventories
• Chance to monitor the sales reports of external systems
• A report that notifies hotel accommodations day by day
• A report that shows the hotel name, number of guests and the number of nights etc. for all reservations
• A report that provides the list of vacant rooms
• A report that displays collections per reservation
• A detailed report that groups reservations in accordance with the hotel and the date of entry
• A report that shows the allocation of allotment and the information of the sold ones, stop sale or release
• A passenger list that belongs to our customers' own inventory
• Reservation status report of the agencies; amount of reservations and guests per agency etc.
• Efficient business planning model that includes reports controlling the vacancy in reservations per agency
• Report of the sold extras
• Chance to fasten processes with reporting that shows profitability by grouping the placed reservations per agency
• Profitability report per agency
• Cost report
• Detailed solution opportunities thanks to reports that show whether if these costs have been controlled or not by filtering the cost items within the reservation per supplier

If you want more information about our solutions, please contact us by filling out the "Request Form" section.

Our Solutions

• Airline Reservation Solutions
• Tour Operator Reservation Solutions
• Consolidator Reservation Solutions
• Internet Solutions
• Request Form
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ABL Education

3 Key Customer Service & Support Tips For Tour Operators

By Adrian Bertrand

Though many tour & activity operations have affirmed the customer is always right, Zeke Adkins from Entrepreneur magazine said it better - customers are not always right but they are never wrong .

When it comes to dealing with client concerns, frustrations, criticisms, pushback, or even grudges, there are methods of dealing with such complaints that can result in better outcomes than others.

In this post, we will highlight eight key methods of dealing with customer service to help businesses recognize the most efficient ways of handling the more undesirable sorts of interactions.

We hope this post helps you provide excellent customer support but that it also helps you secure loyal promoters that share their positive experience(s) with future customers.

1. Use social media, email, chat bots & other online platforms as primary methods of communication.

This is not to say that speaking with someone is unacceptable but rather that it is disfavored by a fair portion of people. According to one study by Conversocial, 32% of participants found phone & voice calling to be the most frustrating way of dealing with customer service. Be sure to offer good support via online mediums to cater to a more tech-savy & newer generation of clientele.

Additionally, tour businesses should consider the ancillary benefits of using more online mediums as opposed to phones to provide support:

• The cost of virtual support is far cheaper than phone & voice support.
• Reduced phone support means less frustrated employees.
• Less administrative work required for repeat issues or similar concerns means more resources available for tasks at-hand.
• Online messaging can be made on public channels as to necessitate good behavior on behalf of a customer while demonstrating transparency on a business’s behalf.

2. Value a customer’s time and find a way to demonstrate this understanding.

In a customer service study published by Forrester, 73% of participants stated that valuing their time is the most important thing a business can do to provide good customer service.

Though this may seem like a no-brainer, recognizing and acting upon this fact can greatly contribute to providing exemplary customer service. Whether this takes the form of solving an issue as fast as possible, stating words that demonstrate the understanding of a customer’s frustration, etc., the choice remains at the discretion of individual businesses.

3. Respond quickly. The value of fast responses can be quantified & monetized.

In 2015, Twitter paired up with Applied Marketing Science and found that in the context of domestic air travel, customers are willing to pay $20 more for an air ticket when airlines respond to Tweets within 6 minutes. Yet, by contrast, only $2.33 more if an airline take longer than an hour to respond.

Who knew that quicker replies could lead to additional sales & revenue for a company?

Now let’s take a look at this idea from a referral standpoint. In a study by NM Incite, respondents were asked to rank the values of slow but effective support vs fast but ineffective support with respects to companies offerings goods and services. It was found that a higher 33% of respondents were likely to recommend a service that had fast but ineffective support while only a lower 17% of respondents were likely to refer a company that provided slow but effective customer support!

The kicker is, even when no support was provided, customers were still 19% likely to make a referral. All conditions equal, customers really do hate slow support!

There are many notable facets of customer service that should be taken into account in the tour & activity space. Given that customers are never wrong it is taking feedback and data-driven analysis that will help move your customer support forward. We hope these specific pieces of advice will complement your existing structures for customers but be sure to check out our other helpful resources found here . If you have any questions, comments or feedback regarding this recent post please don't hesitate to give us a shout!

How to automate bookings with tour operators and destination management companies

Business Management

• Digital Marketing
• Distribution
• Guest Experience
• Innovation in Hospitality

Tips & Advice

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The challenge with tour operators and DMC bookings

Automating tour operators and dmc booking process.

• A single solution is the fastest way to improve – You should start the new season by setting up and managing rates, packages, inventory allocation and any other fees for all channels (business, leisure, tour operators and DMCs) with a single, centralized solution. Ensure your rates and inventory are always accurately distributed via two-way API integrations. When everything works together as one, better results occur almost effortlessly.
• Automating reservations enhances channel visibility – To keep from dropping the ball, abandon the manual process of managing tour-related reservations offline from incoming faxes and emails. It’s easier to manage when every booking lives in one system. Accessing all your bookings automatically on the same screen from every channel in real-time dramatically increases your visibility of the whole playing field, allowing your team to easily catch bookings hit at your hotel from every direction.
• Quickly reacting to market changes is fundamental to success – Never let your hotel be caught standing still. Enforcing a single, holistic distribution strategy consistently across all channels from a centralized solution that connects directly to your CRS or PMS, allows your hotel to adapt its rates and inventory quickly to tour operators’ and DMCs’ changing market demands and stay ahead of the competition.
• Analyze the stats to gain greater market intelligence  – Knowledge applied is powerful, especially when building a lead over your competitors. Having a solution that lets you leverage built-in reports, monitor business activities across all channels, look at the numbers your tour operators and DMCs produce are vital. Integrated reporting enables you to analyze tour segment performance against other channels and make any adjustments that improve performance.
• Static rates limit your revenue growth  – For your hotel team, it’s important to improve revenue yield by replacing annually contracted static rates and inventory blocks with dynamic rates and real-time inventory allocation. Being able to effectively manage inventory, advance bookings, lower-cost competition and fluctuating bouts of supply and demand are essential in driving home more bookings, RNs and ADRs from tour operators and DMCs — producing even greater revenue for your hotel.

Make the most of every season

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• Tips & tricks

KPIs for Tour Operators: An Essential Tool for Maximizing Revenue

Table of Content

What are s.m.a.r.t. goals, the importance of tracking kpis for tour operators, kpis for tour operators: booking volume, kpis for tour operators: occupancy rate, kpis for tour operators: average booking value, kpis for tour operators: customer acquisition cost (cac), kpis for tour operators: online reviews and ratings, kpis for tour operators: website traffic and conversion rate, kpis for tour operators: customer lifetime value (clv).

In this day and age, there are a lot of resources out there on how to improve your tour and activity business. In fact, on this very blog you will find so many articles and ebooks covering the subject that it would take a lifetime to read them all. While the barrier to accessing the right knowledge is relatively low, the real challenge is adapting all these strategies and best practices to your own reality. The main reason travel professionals struggle to execute their plans is that they often forget to set S.M.A.R.T. goals, define relevant Key Performance Indicators (KPIs) and monitor them continuously. But what do we mean by S.M.A.R.T. goals? And what are the most important KPIs for tour operators and activity providers? In the following sections, we’ll answer these questions and more.

Before trying a new business strategy, you need to clearly define the goals you want to achieve, which can be more complex than you think. For this reason, we suggest you to adopt the “S.M.A.R.T.” framework, which is an acronym that stands for:

Setting a broad goal like “I want to sell more tickets” can be detrimental to your business because it makes it difficult for you and your staff to focus your efforts in a constructive way. You need to be as specific as possible, and the best way to do that is by asking yourself a few questions:

• What is the end result of this project?
• Who will be involved in the project? Can this be done internally, or will I need to hire outside contractors?
• What resources can I use to accomplish this goal? What is my budget?
• What are the best distribution/sales/marketing channels I should consider using?

Simply put, a goal is “measurable” if it has a number attached to it so you can easily track your progress. Monitoring these numbers (the tour operator KPIs we’ll talk about in the following sections) not only helps you stay focused and motivated, but it also allows you to see if you need to make adjustments to your original strategy before it’s too late.

You will never reach your goals if they are not realistic, even if you follow all the other principles of the S.M.A.R.T. framework. A goal is actually achievable only if you’re confident you have enough resources (in terms of manpower, money, and knowledge) to accomplish it in a given time frame.

Even if you work for or own a large company, you still need to remember that the resources at your disposal are limited, so you can’t afford to waste them on projects that don’t contribute to your bottom line in some way. In other words, when defining a new goal, ask yourself if reaching it will effectively have a positive impact on your business.

To really focus your energy on achieving a goal, you need to set a start and end date for your projects. Having a deadline will help motivate you and, more importantly, allow you to set the right priorities for your business.

Using these criteria, here are some examples of possible S.M.A.R.T. goals for a tour or activity company:

• Grow your email subscriber list by 25% in the next two months.
• Increase your social media followers by 40% in the next six months.
• Generate 15% more qualified leads from online advertising in the next three months.
• Increase website conversions by 10% in the next four months.
• Increase average booking value by 5% in the next two months.
• Improve online review scores on TripAdvisor by 0.5 points in the next six months.
• Increase click-through rate (CTR) on email marketing campaigns by 7% in the next three months.

As we’ve seen, one of the most important aspects of the S.M.A.R.T. framework is that you must constantly track your results so that you know your progress and can adjust your strategies as needed. The best way to do this is to define a set of Key Performance Indicators (KPIs), which, as the name suggests, are quantifiable metrics of your company’s performance. If you’re wondering what the most meaningful KPIs are for tour operators and activity providers, read on!

Booking volume refers to the total number of bookings made for tours and activities in a given period. This is a critical metric for tour operators as it directly relates to revenue generation and reflects the overall demand for their services. For instance, a steady increase in bookings suggests that an operator’s marketing efforts, tour offerings and customer service are resonating with its target audience and driving growth.

In addition, monitoring bookings helps travel companies identify seasonal trends and fluctuations, allowing them to adjust their strategies accordingly. When it comes to reservations, having a clear understanding of patterns and fluctuations allows operators to optimize resources, such as staffing and inventory management, so that they can efficiently meet customer demand.

Occupancy – a metric traditionally used in the hotel industry – can be calculated by dividing the number of tickets you’ve sold for your tours and activities by the total amount of seats available. This KPI for tour operators tells you how effectively you’re using your resources and whether you’re maximizing your revenue opportunities.

If you’re not happy with your occupancy rate, consider the following strategies:

• Dynamic pricing: Implement dynamic pricing strategies based on demand, time of day or seasonality to incentivize off-season bookings.
• Offer last-minute deals: Encourage last-minute bookings by offering discounted rates for low-demand tours close to their scheduled start dates. This can help fill the remaining seats and improve overall occupancy.
• Adjust tour frequency: If certain tours have consistently low occupancy rates, consider reducing their frequency or eliminating them altogether. This will allow you to focus on promoting more popular tours with higher occupancy rates.

Average Booking Value (ABV) is the average amount of revenue generated per booking and it can be calculated by dividing total revenue by the number of reservations in a given period. ABV provides valuable insight into the effectiveness of your pricing strategies, and if it’s too low, it means you’re probably leaving money on the table. The best way to increase your average booking value is via up-selling and cross-selling strategies: in other words, offer your customers the opportunity to upgrade their experience or add additional services such as transportation, meals, or equipment rental during the booking process. Alternatively, you can bundle tours or activities at a discounted rate to encourage customers to book multiple experiences at once.

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer and is calculated by dividing the total marketing and sales expenses by the number of new customers acquired in a given time period. As you can imagine, monitoring CAC allows companies to gauge the effectiveness of their marketing and sales efforts. Unlike the tour operator KPIs listes in the previous paragraphs, you want to keep your CAC as low as possible. One cheap and easy strategy to reduce acquisition costs is to encourage satisfied customers to refer friends and family to your tours and activities. You can offer people discounts or free add-ons on their next booking to entice them to join your referral program.

Online reviews and ratings play a crucial role in the decision-making process of potential customers looking for tours and activities. As marketers know, they take advantage of a cognitive bias known as “social proof”: when people are undecided, they tend to copy the actions and beliefs of others around them. Regularly evaluating customer feedback through reviews is also essential because it provides critical insight into the aspects of your business that need improvement, as well as the areas in which you already excel. To build your online reputation, other than encouraging happy guests to share their experiences on TripAdvisor and similar sites, don’t forget to respond to both positive and negative reviews. Thank customers for their feedback, acknowledge any problems they may have experienced, and offer solutions to rectify the situation if necessary.

Website traffic is the number of visitors who come to your website, while the conversion rate is the percentage of those visitors who complete a desired action, such as booking a tour or filling out a form to request more information. Traffic is a good indicator of the performance of your marketing efforts: the higher it is, the more prospects you’re driving to your site. On the other hand, the conversion rate shows if your target audience is effectively responding to your offer and/or if there are problems with your booking process. For travel and activity providers, the most effective way to increase traffic and conversions is to implement a booking system . With Regiondo – the leading software in this category – visitors to your website can make a reservation with just a few clicks, eliminating any friction in the booking process. In addition, Regiondo’s robust analytics tools make it easy to track the tour operator KPIs mentioned in this article.

Customer Lifetime Value (CLV) is a metric that represents the total net profit a company can expect to earn from a customer over the course of their relationship. It takes into account factors such as average purchase value, purchase frequency and average customer lifespan. CLV is essential for tour operators because it provides a picture of the long-term financial viability of their business and helps guide marketing, pricing and customer service strategies. As with the other tour operators KPIs, there is no magic formula for increasing CLV: the only thing you can do is focus on giving your clients the best experience possible, so they’re more likely to book additional tours or activities and recommend your services to others. You could also consider implementing a loyalty program by offering rewards, exclusive offers and discounts to returning customers: it’s a great way to encourage repeat business and foster a long-term relationship.

In summary, consistently tracking and analysing KPIs is paramount to the success of any tour operator or activity provider. KPIs provide valuable insight into various aspects of your business, allowing you to make informed decisions and implement effective strategies. By monitoring your progress against your S.M.A.R.T. goals, you can identify areas for improvement, optimize resources and ultimately drive growth and profitability.

If you’re looking for comprehensive reservation software that can help your organization track KPIs and optimize processes, consider scheduling a call with the Regiondo team. Our industry-leading software offers seamless online booking, real-time availability, and powerful reporting tools to help your company grow. Book your demo today and discover how we can help you unlock the full potential of your business.

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This is how dynamic packaging impacts tour operators

What is dynamic packaging in travel and tourism?

Examples of dynamic packaging in travel and tourism, dynamic packages that include activities and experiences, the benefits of dynamic packaging.

When Thomas Cook collapsed in September 2019, headlines suggested that the demise of one of the oldest travel companies in the world was the final nail in the coffin for the traditional package holiday.

In truth, traditional tour operator package holidays, usually sold offline and consisting of set flights and accommodation, remain popular, particularly in the UK, Germany, and China.

Research presented by Skift shows fixed package holidays – normally a two-week beach vacation – taken by Germans and Britons in 2018 accounted for 40% and 43% of the total vacation market respectively (see chart 1).

Chart 1: Outbound Package Holiday Market Share UK & Germany

So the evidence is that while the traditional package holiday is by no means dead, alternative and more flexible ways to book vacations are dominant.

Travelers are seeking more individual experiences and, for a number of years now, there has been growth in OTAs offering consumers the ability to create dynamic travel packages and improving the look to book ratio .

Tailor-made trips can include flexible arrival and departure dates,  tours that take tourists off the beaten track, niche activities and experiences, cruises, wellness breaks and all-inclusive packages.

In the US, the world’s largest tourism market, dynamic vacation package sales were worth $35b in 2017, according to a peakwork research paper (see chart 2).

Chart 2: Dynamic Vacation Package Sales

A forecast of dynamic package sales made prior to the global pandemic shows significant growth curves, particularly for the Indian and US markets (chart 2)

Chart 3: Growth of dynamic package sales

In the travel and tourism sector, dynamic packaging refers to a trip or vacation with in-built flexibility and ‘pick and mix’ functions, that customers can book via an OTA or online tour operator.

Dynamic packaging contrasts with the traditional travel business model in which the tour operator buys blocks of flights and overnight stays from wholesalers and sells them on to customers. This pre-internet model left the tour operator exposed to the cost of any unsold vacations, and was a factor in the collapse of Thomas Cook.

In the 21 st century, OTAs and online tour operators have made dynamic packages a core focus of their businesses. Customers making purchases on sites such as Expedia and Booking.com are sourcing flights, accommodation and car rental in real-time.

The dictionary definition of ‘dynamic’ is a system or process characterized by constant change.

The term ‘dynamic’ applies to the vacation package because it changes depending on the customer, who may wish to add theatre tickets, airport parking, activities or restaurant bookings.

Crucially, dynamic also applies to prices. Dynamic pricing i.e. flexible pricing based on market demand, is particularly suited to perishable products such as hotel stays, airline seats and concert tickets. Still, in order to apply dynamic pricing, we need to understand the factors affecting demand forecasting .

This allows packages to be dynamically priced for each individual component but given a total opaque price for the end-user.

To deliver true dynamic packaging, tour operators and OTAs need to partner with a specialist software provider such as peakwork or traveltek .

The most common entry point for customers purchasing dynamic packaged trips or vacations is accommodation, followed by flights, according to research into the UK market by Microsoft (see chart 3).

There has been an increase in the types of businesses and brands that offer dynamic packaged vacations. These now include airlines, hotel groups, rail operators, metasearch engines and potentially more.

Almost every major airline is now in the business of selling vacations too. Airlines are taking a share of the dynamic package market and extending their brand presence. Some outsource their vacation websites to travel companies while others do not.

Ryanair Holidays, for instance, is administered by the OTA Logitravel. In contrast, Emirates Holidays is run in-house as the tour operating arm of the Dubai-based Emirates Airline.

Major hotel brands have also created their own vacation businesses to give their brands greater visibility and capture their share of the vacation market.

Vacations by Marriott is a service powered by Expedia. The website clearly states that the customer is making a booking with Expedia and not Marriott and that the majority of the hotels within the packages are not Marriott hotels.

Train operators are another category in the dynamic package market. In Europe, high-speed rail travel is taking market share from airlines, especially on shorter journeys such as those between London, Paris, Brussels and Amsterdam.

Eurostar Holidays, a wholly owned subsidiary of Eurostar International, allows customers to book travel, accommodation, car rental, luggage services and museum tickets all in one transaction.

Metasearch giant Google has flight, hotel and trip search tools that allow travelers to apply various filters of their choice, such as only to show offers with free cancellations policies.

Technological advances could further ‘democratize’ the availability of travel information and inventory by making it easier and cheaper to access. The use of big data in the travel industry could be a big asset for this.

In the near future, it is likely that any business that chooses to – e.g. travel guidebooks, wine producers or publishers – could include a travel booking function on their website thanks to an API (application programming interface).

Dynamic packaging has helped to increase the sales of activities and experiences too. According to Unlocking cross-selling in travel , a 2019 Microsoft report, the most popular activities by number of searches are as follows (see chart 4).

Chart 4: The most popular activities by number of searches

Activities are a popular add-on for consumers who are creating their own dynamic packages.  Microsoft research found that 40% of its users exclusively bundle flights with accommodation, while 47% added an activity when either purchasing a flight or accommodation (see chart 5).

For OTAs and online tour operators, the overriding benefit of dynamic packages is the ability to achieve consistently high margins.

Dynamic packages usually have a single opaque price for the consumer meaning that the tour operator’s cost of the individual components is not known to the end-user.

Tour operators tend to obtain special package-only rates from their suppliers which are significantly lower than if these components were sold as standalone items.

Pricing in real-time allows the tour operator to sell attractive packages to tourists while keeping control over their own margins. This is the answer to the question of how to increase sales in travel business .

As noted in a research paper by Emmanouil Stiakakis tourism is an information-intensive industry with a relatively long value chain. The chain of distribution usually consists of four or five stages.

Because the chain of distribution is dynamic (availability and price are constantly changing), there are further opportunities for tour operators to maximize their profits.

Hotelmize , for instance, offers an innovative software solution for OTAs, bedbanks and tour operators that optimizes profits during the post-booking and pre-arrival phase.

For the principals in the distribution chain – i.e. the airlines and the hotels – dynamic packages have benefits too.

Average daily hotel rates are, on average, 30% higher for package stays compared to standalone stays, according to research by Expedia.

Tourists who book their hotel stay within a package tend to stay longer, book earlier and are less likely to cancel.  This helps hoteliers reduce last-minute discounting. The same is true for airlines.

Dynamic packaging also enables hotels and airlines to offload distressed inventory, as the true price is hidden from the customer.

Dynamic packaging has created more complexity, but also greater flexibility and many positive benefits for all players at every stage of the travel and tourism distribution chain.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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