Updated March 2023 – As a tour operator, maximizing tourism profit is crucial to the success of your business. However, with so many factors to consider, it can be difficult to know where to begin. 

So, how do tour operators maximize profit and increase their profit margins over time? The key is to constantly assess and adjust your business strategies and operating procedures. In this article, we will discuss six effective ways that tourism operators can increase their profit margins and take their business to the next level. Whether you’re a seasoned tour operator or just starting out, these tips will help you stay ahead of the game and boost your bottom line.

What is your profit margin?

Your profit margin is defined as the revenue that you generate through your tour and activity company above what is needed to cover your operating expenditures. Ideally, your profit margins will continue to increase year over year, allowing you to continue to build your business, develop your brand and encourage customer loyalty.

As a tour and activity company, earning a profit is not only essential for your survival but also for your growth. While there are several ways to increase your profit margins, one factor that can greatly impact your bottom line is the average commission rates that you pay to your sales channels. Direct and indirect channels such as online travel agencies, wholesalers, and travel agents can all play a significant role in your business’s success. Therefore, it’s important to evaluate and negotiate the average commission rates you’re paying to these channels regularly. By doing so, you can ensure that you’re not overpaying for their services and that you’re maximizing your revenue.

6 ways to maximize your tourism profit margins

Here are 6 effective ways to maximize your tour operator’s profit margin:

1. Find ways to add value to customers

This is particularly important if your tour prices are higher than your competitors. Most travelers are willing to overlook the price point of a tour if they can see that there is added value to booking with your company. Personalized service, attention to detail, and upgraded equipment are a few ways that you can easily increase the value of your products.

Another effective strategy that can help you differentiate your tour and activity company is selling packaged tours. By bundling multiple activities or services into a single package, you can create a unique and attractive offering for your customers. Packaged tours also enable you to offer a discounted price point for customers who purchase multiple activities, thereby increasing the perceived value of your products.

2. Target high-quality traffic in online marketing campaigns

Driving traffic to your tour and activity website is a critical component of any successful marketing strategy. However, simply generating large volumes of traffic is not enough. To truly maximize your tourism profit margins, you need to focus on attracting the right kind of visitors – those who are most likely to book your tours and activities.

One of the most effective ways to do this is by formulating a robust SEO (search engine optimization) strategy. This involves optimizing your website for the keywords and phrases that are most relevant to your business and target audience. By doing so, you can increase your visibility in search engines and attract highly targeted organic traffic to your site.

In addition to SEO, another effective way to attract high-quality traffic is through pay-per-click (PPC) advertising campaigns. With PPC, you can create targeted ads that appear in the search results or on social media platforms and only pay when someone clicks on your ad. This allows you to reach highly targeted audiences and drive relevant traffic to your site, without wasting money on unqualified leads.

3. Optimize your website for conversions

In today’s digital age, having a strong online presence is essential for any tour and activity company looking to succeed. One effective way to increase your online sales and maximize your revenue is by optimizing your website for conversions. A well-designed website with fast site speed, engaging multimedia elements, and online booking capabilities can significantly improve your conversion rate and provide a seamless user experience for your customers.

However, it’s important to keep in mind that website optimization can be a costly endeavor. Managing your budget and prioritizing your investments is critical to ensuring that you’re making the most of your resources. Investing in high-quality multimedia content, such as professional photos and videos, can help attract and engage potential customers.

4. Create informative content regularly

Attracting and retaining customers is essential to maintaining a healthy profit margin in the tourism industry. One way to achieve this is through content marketing, which involves creating and sharing valuable, informative content that resonates with your target audience.

A blog is an easy way to provide your target market segments with engaging information about your tours and activities as well as the destination in which your business is located. However, your content marketing strategy should look beyond the words on the screen. You also will want to create videos, slideshows, and other visual pieces of content to attract the most motivated travelers to your brand.

5. Launch retargeting campaigns

Launching a retargeting campaign can be an effective way for tour operators to boost their profit margin by converting potential customers who may have abandoned their website before making a booking. By reminding visitors of your brand and the services you offer, retargeting campaigns can help to increase the likelihood of conversion.

Retargeting ads can be strategically placed across various platforms such as search engine results pages, social media platforms, and even email inboxes. This helps to keep your brand top-of-mind for potential customers, making it more likely that they will return to your website to complete their booking. Furthermore, retargeting campaigns can be personalized to show relevant offers or promotions based on a visitor’s previous browsing behavior, making it more likely that they will engage with the ad and make a purchase.

6. Automate your emails

build tourism profits by automating emails

One of the most powerful tools in a tour operator’s arsenal is the use of automatic emails. These pre-written emails can be sent out automatically to customers at specific points in their journey, helping to keep them engaged and informed about your business. Whether you’re looking to solicit feedback about your tours, promote your latest discounts and packages, or simply stay top-of-mind with your customers, automated emails can be a powerful tool for driving tourism profit.

By setting up automatic emails that are triggered by specific actions or events, such as booking a tour or signing up for a newsletter, you can create a seamless and personalized experience for your customers. This can help to build trust and loyalty, ultimately resulting in higher customer satisfaction and repeat business.


As you increase your tourism profit margins, you will be able to add to the products that you offer, improve your tour and activity operating equipment and ultimately develop better brand loyalty.

By utilizing an online booking software such as Rezdy, you’ll be able to generate more revenue through advanced features such as:

  • The ability to accept online & mobile payments in multiple currencies via integration to secure payment gateways
  • Intuitive reporting tools that will allow you to make informed business decisions
  • The ability to sell add-ons and extras
  • Setting up a dynamic pricing strategy to maintain your revenue even during low seasons
  • Offering promo codes and coupons

Furthermore, a tour operator reservation system will allow you to optimize your processes and broaden your distribution strategy. Tools such as a real-time availability viewer, automatic guest communication and automated manifest updates allows you to automate your repetitive tasks – thus, saving you time. And connection to the industry’s largest distribution network – Rezdy Channel Manager – will give you access to connect with over 25,000 active agents looking to resell your products.

Ready to join the thousands of Rezdy operators that on average grew their bookings by 27% in 2022? Start your FREE 21-day trial or book a demo with us today.

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Download our Guide to Building Online Products that Convert

Ready to start building online products that convert and take your tour operator business to the next level? Download our comprehensive Guide to Building Online Products that Convert today and learn how to optimize your online offerings for maximum profit and customer satisfaction.

With practical tips, best practices, and real-world examples, this guide is a must-read for any tour operator looking to boost their bottom line and build a loyal customer base.

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