Seasonality is the nature of the travel industry. Tourism operators know this all too well. While peaks and troughs are inevitable, there are ways minimise the effects on your bottom line. We’re going to let you in on some secrets to maintaining year-round profitability for tourism operators.
Take advantage of the peak season
While anticipating the low season, take full advantage of the peak season. You can maximise profits in the peak season by:
- Using reliable booking software in order to optimise last-minute bookings.
- Introducing different pricing tiers
- Offering new packages that offer higher value (that would entice more bookings)
- Establishing referral programs and partnerships with local operators.
The goal is to keep your existing customers happy while also encouraging new customers to make bookings.
Manage off-season expenses
Knowing how to manage your expenses is one of the best ways to maintain business profitability, even during the low season. You can toggle your marketing and advertising budget up or down, depending on the demand for the season.
The challenge is finding a balance. Just because you’re in a quiet season, it doesn’t mean travellers aren’t using this time to plan their next trip. In fact, the off-season might be the best time to capture the attention of would-be travellers. They expect to find good deals.
Be smart when assessing your expenses so you can maintain cash flow while also ensuring more bookings in the months to come.
Get people dreaming
Use the low season to create buzz about the peak season. There’s no reason you can’t start hyping your summer offering in July! We all like taking a mental holiday in the bitter cold of winter and planning a sunny vacay. Let people know what they have to look forward to.
Offer daily deal promotions
The off-season is the best time to offer great deals and discounts on your offering. One of the best ways to drum up interest is to offer daily deals. This type of discount offer is available for a limited time so it creates a sense of urgency.
Explore other revenue streams
When business is slow, consider diversifying your offering and developing a new product. If weekday numbers are down, consider what you could offer school groups or corporate teams. Think about ways you can target niche market segments – whether that’s families with young kids, grey nomads, schools, solo travellers…
The tourism business is seasonal by nature, but there are many ways of maintaining year-round profitability. It just requires a consistent approach and flexible thinking!