By Blake Ng — 26 Nov 2018
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.
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:
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
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.
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.
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:
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.
How you distribute your package will determine your success. You should conduct product and package familiarisations for retail agents, wholesalers, and sample target markets.
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.
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:
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.
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:
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.
If you enjoyed this article – 6 ways to package tourism products – then follow the Rezdy blog. There are a lot of marketing tools and resources designed with businesses like yours in mind.
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