Updated April 2022 – As a tour company, you may be seeking effective ways on how to create a tour package that’s enticing for your customers. A packaged tour combines elements that would be a hassle to coordinate separately, such as transport, attractions, meals, and entertainment. With the ease of a tour package, these elements can be easily bought as one and provides convenience for your customers.

Travelers looking for a hassle-free trip usually seek an all-inclusive tour package. It’s an enticing product to promote and include within your marketing strategy and can help you boost your bookings. Most travelers would usually seek a travel agency to provide them with the best packages. However, if you could set up tour packages yourself, you may be able to attract customers to book packages through you directly.

What do customers look for in a tour package?

When understanding the first steps on how to create a tour package, you need to understand your target audience. What is it that they prioritize? Is it affordable airfare? Easy car rental? Flexible cancellation policies? or a particular destination that can cater for their entire trip? Understanding your target audience is key to building enticing tour packages.

Once you’ve nailed your tourism market research, make it easy for your website visitor to identify the different types of tours you offer.

Points to outline in your descriptions should include:

  • Types of tours (day tours, adventure tours, family-friendly getaways, group tours, sightseeing, etc.)
  • The estimated total cost and budget per guest or booking
  • The total duration of the vacation package
  • The different travel products included (transportation, tours, activities, etc)
  • Age range. Are there any age limitations?

1. Pricing

The price of your products should be set 12 months in advance, and it should include all your costs – product development, entry and guide fees, meals, maintenance, and marketing.

If you want to partner with other travel companies (which you totally should), make sure that

  • Everyone has a good profit margin but is still able to provide competitive prices
  • You have allowed for unexpected costs
  • You have determined product break-even points

It would also be smart to ask everyone involved to promote and sell the package.

If you want to reduce your package price, remember not to compromise quality. It should be your last option. Consider other strategies that will make your tours more competitive.

2. Commission

how to create a tour package and handle commissions

Depending on the market you’re targeting, you will need to consider the commission you pay your agents. It differs from 10-30% depending on the type of agent involved.

If your market is overseas, you’ll likely be dealing with inbound tour providers, and they will expect a commission of 25-30%.

Want to learn more about agent commission rates and how to calculate commission breakdowns? Click here.

3. Legal Implications

When creating a tour package, you need to provide explicit conditions of the sale of the tour package in order to avoid any confusion. Tour wholesalers and retail travel agents must:

  • Provide explicit conditions of sale
  • Be selective with product endorsements

You don’t want to be involved in a customer complaint about your failure to deliver or misleading advertising.

It’s recommended that you work closely with a lawyer in order to develop the right language for your tour package. Since travel agents will need these legal conditions in place before they can resell your product, it’s best you have your terms and conditions prepared before promoting your tour packages.

4. Travel packages & promotion

How you distribute your package will determine your success. You should conduct product and package familiarisations for retail agents, wholesalers, and sample target markets.

Packaging for overseas:

Contact distributors who understand international packages and markets. You may not even need to create a package, because the international tour operator may bundle a range of products, including yours, for a wholesaler. Remember to screen your overseas resellers, too.

Packaging for domestic markets:

Trialing domestic markets before going international is probably the safer option when first starting out. It’s a more cost-effective and less complicated option.

You can start by targeting the following groups:

  • Clubs and associations members (particularly those that cater to retirees)
  • Schools and educational institutions (if your product has educational content, create an excursion package)
  • Families (they will want the value for money)

Testing the waters within your local travel industry will also generally produce faster results.

Remember to include special interest groups and individuals in your marketing – for example, sports, festivals, and arts.

5. Complementary Product Packaging

Partnering with other tour operators who offer complementary products is a smart way to reduce your promotion costs while making your package more appealing.

For example, you can offer:

  • A range of products from an area to specific niches with related interests
  • A selection of products in a destination where a customer can create personalized experiences

6. Timing

timing when it comes to tour packages

Last, but certainly not least, is timing. When you set your availability, remember to consider your high season and the popular time of year that your target markets come by. Sometimes, however, tour packages can be the perfect answer to your off-peak season too.

The return on your investment will be gradual, so don’t expect an immediate return. Profits can take up to 2-3 years but can be achieved earlier if you get your distribution strategy right.

You can do things to speed up the process, like choose online booking software that allows agents to check your availability and book immediately. Make sure it isn’t commission-based so it doesn’t eat into your profits.

Curious to see how you can organize your tour packages with Rezdy? Start your FREE 21-day trial or request a demo today.

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