What is the number one reason why attractions and tour & activity companies go out of business?
Answer: Lack of customers.
It might be an obvious answer, but companies worldwide work hard every day to get enough customers through their doors. However, with the advent of new platforms and technologies, getting your message in front of customers has never been easier… with a little know-how!
For every business owner, it is critical to know (or at least have someone in their company who knows) how to take advantage of all the latest tools and platforms, from SEO and social to digital distribution. Those who do not familiarise themselves with these opportunities will unfortunately be left behind and likely fail.
A word of caution. Though you may learn how to take advantage of these new platforms, this does not mean that you avoid working on your product to make it the best it can be, or spend less time training your staff etc. These elements drive positive reviews and encourage repeat customers. But by learning about new revenue opportunities, you’ll be able to cast a wider net than ever before.
How to grow your customer reach?
With a strong online sales strategy.
1. Have a good website and online reservation system
2. Sell via your local and regional tourism network
3. Join up your distribution plan with a channel manager.
The challenge for many local tour & activity suppliers is knowing where or how to connect with the major distributors.
Here at ExperienceBank, we discuss with you and your reservation system provider the best steps and options to connect with the right distributors for your product. (If you don’t have a current reservation system, talk to us directly and we will point you in the right direction).
Supplier Commissions
Suppliers must be aware that all distributors charge a commission for each booking generated. Many of these distributors also resell via third parties, so they split their commission with them. The commissions charged range from 20% – 40%, depending on factors such as where you are located, the uniqueness of your product, and the volume of sales anticipated.
With the right product distribution strategy, you can achieve multiple benefits for your organisation that go beyond your expectations.
Eliminate managing multiple excel spreadsheets from different partners
Cut down on your marketing spend
Eliminate online overbookings
Create greater operational efficiencies
Have time to work on your business rather than always in the business
Get more customers
Your next steps to improve your distribution
Talk to your reservation systems provider and say you want to discuss channel management. Get them to contact us and we will arrange a discussion (no commitment or fees required) to explore your requirements and to discuss how we can help you grow your business.