What is a promo code and why do online shoppers who use promo codes spend 24% more than shoppers who don’t? Moreover, 38% of shoppers indicated that they bought more than they usually would because of promo codes, according to Blippr.

So, what is a promo code?

In short, it’s a word or code that you can set up in your system that allows your customers to receive a discount or a special deal at checkout. You can set them up for specific campaigns such as holiday promotions, referrals, loyalty, etc. 

Why do promo codes work?

They make people feel special. People who receive promo codes experience heightened levels of oxytocin (this means it creates a feeling of happiness), according to studies done at Claremont University. Meaning these customers are a lot more likely to go through with their purchase.  

Promo codes also: 

  1. Allow you to easily keep track of where your sales are coming from. 
  2. Push specific products at specific times where you have excess supply. 
  3. Build loyalty from your existing customers.

Now that you know what a promo code is. Here are:

3 ways to grow your revenue with promo codes

1) Create urgency with daily deals or limited-time offers


Humans by nature are afraid of missing out. By using phrases such as ‘Today Only’ or ‘Limited Seats’ you can influence your customers to act sooner rather than later.

Daily deals are a great example. You could offer a special price for the first 15 customers to book a specific tour with your promo code. The next day you could offer a free upgrade. And so on. If the setup is too much of a hassle, you could also do it as a weekly or monthly deal. 

In addition to urgency, this creates a sense of regularity, which 51% of shoppers said they want, according to Claremont University

2) Push your less popular experiences and sessions

using promo codes in your tourism business

Promo codes are a great way to push your less popular experiences and/ or time slots. For example, many tour operators may find that their tours are not as full during weekdays, especially during the day. 

You could offer a special deal or upgrade on those specific time slots with promo-codes, for example 20% off – 74% of shoppers online prefer discounts that indicate a “percentage off” savings, according to Blippr

You can set up the promo-codes so they’re only redeemable for your specific time slots, for example during Monday to Thursday, between 9AM and 3PM. Here’s how you can do it on Rezdy.

This is also a great way to target specific groups of customers. For example, students who would be able to go on your tours at those times. Create a code like ‘STUDENT20’ so they feel like the special deal is catered for them. 

96% of students would be more likely to make a repeat purchase from a brand that offers student discounts – dealdrop

3) Target returning customers and grow customer loyalty

discounts and promo codes

51 percent of online shoppers say they want exclusive offers based on their loyalty to a brand. Reward your existing customers and build loyalty, by offering them a special deal. With travel beginning to reopen, now is the perfect time to reach out to your past customers and remind them about the great times they had with your company. 

Returning customers are your greatest asset. After all, increasing your customer retention by just 5% increases your profits by 25-95% according to Harvard Business Review.


Now that we’ve answered the question “what is a promo code?” and how you can grow your revenue with promo codes. Here’s how you can set them up on Rezdy

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