Pricing and upselling tips to grow your tour business year-round
Finding the right price for your tours and activities can feel like a guessing game. Set it too low and profits shrink. Set it too high and travelers might look elsewhere. The good news is, pricing doesn’t have to be a gamble. It’s a strategy you can refine with the right approach.
Pricing is about more than covering costs. It’s about positioning your experiences competitively, creating value, and using upsells to grow revenue without sacrificing the guest experience. When you strike that balance, everyone wins.
Whether you’re just starting out or ready to reassess your pricing model, begin by understanding your costs, setting profit goals, and choosing strategies that align with demand throughout the year.
Start your pricing plan by analyzing tour costs
Before changing prices, understand what it costs to run your business. Every tour or activity has two types of expenses: fixed and variable.
Fixed costs include rent, insurance, permits, or storage fees. You’ll cover these each month, even in slower periods.
Variable costs change based on bookings — fuel, guide commissions, snacks, or marketing campaigns.
Once you know these numbers, calculate your break-even point. This is the minimum number of bookings needed to cover costs and start making a profit.
Review past data to spot trends. For new operators, research benchmarks. An ATV company might face higher fuel and maintenance costs, while walking tours spend more on guides and advertising.
Understanding your costs lays the foundation for strong pricing and smarter upselling.
How to calculate profit margins for your tours and activities
Next, decide how much profit you want to make per booking. Margins vary by experience, location, and demand, but the goal is to balance value and profitability.
Highlight what makes your tours unique. Premium touches like hotel pickup or champagne at sunset can justify higher prices. Travelers are willing to pay more when they see clear value.
In competitive markets, start with a lower base price and offer optional add-ons like beverages, photo packages, or transportation. This attracts price-conscious travelers while giving them the option to upgrade.
Compare your rates with local competitors and customer feedback. Consistently selling out can signal an opportunity to reassess pricing or capacity. If bookings slow, adjust accordingly. Small changes can lead to meaningful gains.
Tour pricing strategies to increase revenue and fill more bookings
Prices don’t need to stay the same all year. Tourism moves in cycles, and your pricing should too. Adjusting rates based on demand helps maximize revenue and attract more travelers.
Seasonal and peak pricing
If your tours have clear busy and quiet months, adjust accordingly. Travelers expect higher prices during peak times like summer or holidays. Lower prices in slower months help fill tours that might otherwise sit empty. For example, a zipline park could apply higher pricing during school breaks and offer discounts in the fall to attract locals.
Time of day pricing
Many experiences see peak demand at specific times; think sunset sails, ghost tours, or evening escape rooms. Price premium slot differently and discount early or midday tours to fill your schedule evenly.
Day of week pricing
Some days are busier than others. Adjust rates on weekends and offer weekday deals to drive midweek bookings. A kayak rental company might charge more on Saturdays and offer a discount on Tuesdays to keep guides working.
Discount pricing
Offer discounts strategically. Large groups or corporate outings can earn volume discounts, while limited-time promotions in your email or social campaigns create urgency.
Pro tip: Use FareHarbor reporting tools to track which discounts drive the most conversions.
Last-minute pricing
Last-minute deals help fill open spots before departure. Promote them through social media or email. Use this strategy sparingly to avoid training travelers to wait for discounts.
Packages
Packages boost your average booking value by bundling extras like lunch, branded gear, or transportation. Travelers who want a seamless experience often choose the upgraded option.
If you already use FareHarbor, the Packages feature makes it simple to combine tours and add-ons directly in your dashboard.
Putting your tour pricing strategy into action
Start by reviewing your costs and making small adjustments that add up. Whether you focus on seasonal pricing, weekday discounts, or packages, these strategies can increase revenue and fill more tours.
Want more ways to boost profits? Learn how to use upselling techniques effectively to turn every booking into an opportunity for growth.
