As a tour business owner, you’ve likely already laid the foundation—your brand is established, your offerings are defined, and you’re starting to see the fruits of your labor. Now, you’re ready to take your business to the next level.
This article is your guide to navigating the next phase of growth. We’ll explore key areas that are crucial for expansion: optimizing OTA marketing and distribution channels, enhancing your online presence, mastering social media strategies, implementing effective financial management, refining your pricing strategies, and scaling your business sustainably.
The tour and activities sector is thriving, with travelers increasingly prioritizing experiences in their travel booking, as Arival research has found. This presents a wealth of opportunities for businesses like yours to capitalize on increasing consumer demand for unique and memorable experiences.
Let’s dive in, starting with how to leverage OTA marketing and distribution channels to expand your reach and drive bookings.
OTA Marketing and Distributions Channels
Whether you love them, or love to hate them, online travel agencies (OTAs) are the lifeblood of many tour operators’ bottom lines. Working with distribution partners can help you widen your reach to new audiences.
“Use the OTAs to your advantage,” recommends Dara Mihaly, an industry veteran who has worked with the likes of ExperienceFirst, Another Side of Los Angeles Tours, and the Griffith Observatory, among others.
Mihaly recommends getting on as many platforms as possible, as long as you can stay on top of your inventory and effectively manage your availability. “Ultimately, direct is the goal but the OTAs are one of your best marketing tools. Make Viator, and the like, work for you,” Mihaly adds.
For more on working with OTAs and managing distribution channels, check out our articles on Essential OTA Checklist for Experience Operators, OTA Marketing, and 4 Ways to Make OTAs Work Harder for You.
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Online Presence and Social Media Marketing
In today’s digital age, having a robust online presence is essential for the success of any tour business. With the rapid evolution of technology and changes in consumer behavior, it’s more important than ever to stay ahead of the curve.
Get listed on Google Things to do
While Google does of course offer paid ads, it’s free for operators to get their tours and experiences listed on Google Things to do, an initiative that presents users with tour and attraction tickets and purchasing options directly in Google search results.
Getting listed on Google Things to do is as simple as claiming your Google business profile, and loading up and optimizing your product listings on Google. Operators who’ve completed these steps will benefit from an “official site” badge next to their tour or ticket product listing.
Learn more about Google Things to do and how to take advantage of the program with Arival’s collection of content on marketing with Google.
Keep up with changes in SEO
Google’s latest search algorithm updates only add to the complexity of digital marketing and online presence. In 2024, we are real-time transitioning away from what we’ve traditionally known as search engine optimization (SEO) to search generative experience (SGE).
At Arival 360 I Orlando 2023, Brennen Bliss, the founder of the digital marketing agency Propellic, spoke about the implications of SGE during SEO in the Age of AI: What’s Changing and How to Adapt. “SEO, as a channel, is going to move a lot further down the funnel,” Bliss predicted based on early results he was seeing.
As an example, for many operators, the coveted “things to do” query was the bullseye you wanted to hit to attract people to your site. Now, SGE can give a much faster and streamlined answer to recommended things to do. As you build your online presence, focus on the unique value propositions of your tours and experiences.
“SEO is not title tags and keywords,” says The Tour Guy, Sean Finelli. “I mean, these things are important, but it’s really your product. A rockstar product. Something that is difficult to replicate, and that everyone wants, is what’s going to drive traffic. Not some hack to the algorithm.”
For more on SEO, check out Arival’s Essential Guide to SEO for Tour and Activity Operators. Arival Insider Pro Access members can also get more insights from Finelli by watching his full talk from Arival 360 I Berlin 2023 on how to feel less intimidated by Google.
Be active on your social media
Building a strong online presence goes beyond SEO; social media is a crucial component of your digital marketing strategy.
And as younger (Gen Z and Millennial) travelers in particular are relying on social media for travel inspiration and bookings, staying on top of your social media game is critical for reaching these travelers.
“Reviews and group pics can be good content for your ‘stories,’ while scheduled tours and current events can be good ‘pinned’ or weekly content,” Curry advises.
Social media is also about engaging with your audience, not just broadcasting. Respond to comments, ask for feedback, and create conversations around your tours. This builds a community around your brand and can lead to fostering loyalty around your brand.
Learn more about social media strategy with this Ultimate Social Media Guide for Tour Operators.
Operator Takeaways
- Get listed on Google Things to do by claiming your business profile, uploading and optimizing your product listings.
- Keep up to date with SEO and differentiate yourself by focusing on the unique value proposition of your tour or experience products.
- Focus on creating unique, compelling content (don’t copy/paste it to use on your third-party channels) about your tour offerings.
- Showcase video and photos that capture the essence of being on tour with you or your tour company through your social media channels.
- Respond to positive and constructive feedback from your engaged users to build trust.
Managing Finances and Evaluating Success
Effective financial management is the backbone of any successful tour business. This section covers essential strategies for budgeting, managing costs, and setting competitive pricing to ensure profitability and growth.
Budgeting and Managing Costs
Effectively managing finances is crucial to the success of your tour business. Start by creating a detailed budget that accounts for all operational costs, including marketing, staffing, transportation, and equipment. This should be in line with your overall business plan and strategy: something you refer back to regularly.
Time blocking is one successful way to keep yourself on top of your finances. “Usually, I will spend just one or two mornings a week taking care of all the scheduling, bookings, sales, and marketing,” Gonzales shares. “I prefer to wait until I have the time and tools to complete a task from start to finish.”
Utilizing financial management tools and software to keep track of your spending can help you identify areas where you can cut costs without compromising the quality of your tours.
Pricing Strategies for Tours
Uncertainty in the economy, stock market and consumer confidence continues to cast a gray cloud over 2024 when it comes to where consumers are spending their money.
Yet despite some headwinds over 2024, demand for experiences has remained strong. Travelers want more, and they are increasingly prioritizing experiences when trip planning. Operators need to understand their customers — and their various customer segments — more than ever, and tailor products and prices to suit both affluent and price-sensitive guests. Private tours, for example, are becoming more popular among affluent travelers — and can be priced higher, and corporate tours are another potential avenue to consider.
“When it comes to determining the value of your tour(s), practical logistics (length of the tour, add-ons, etc.) are certainly important, but come second to defining your competitive edge,” Curry says. “What makes your tour(s) different from anything else out there? Once you have identified that most crucial question, you can begin to take a look at the other options (in your city) and how they are priced and marketed.”
Learn more about pricing your tours in this article on How to Set Your Net Rates, and explore the opportunity of corporate tours with How to 5x Your Revenue from Corporate Groups.
Operator Takeaways:
- Research what other tour companies are charging for similar tours. This will give you a benchmark to ensure your prices are competitive while reflecting the unique value your tours offer.
- Calculate all your costs, including fixed costs (licenses, permits, insurance) and variable costs (transportation, tour guides’ wages, marketing).
- Ensure your pricing covers all costs and leaves room for profit — especially if you are selling on third-party platforms that are taking a commission.
- Implement tiered pricing based on different levels of service or experience. For example, offer a standard tour and a premium tour with additional features or exclusivity.
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Scaling Your Tour Business
Successfully scaling your tour business requires strategic planning and a keen understanding of market dynamics. Here’s how to effectively evaluate customer feedback and explore new market opportunities to drive growth.
Evaluating Customer Feedback
Customer feedback is a vital resource for improving your services and ensuring customer satisfaction. By systematically collecting and analyzing feedback, you can identify areas for improvement and capitalize on strengths.
Start by implementing feedback collection methods such as post-tour surveys, online reviews, and direct customer interactions.
Renee Ventrice, Founder of Cork & Keg Tours, emphasizes the importance of leveraging customer feedback to enhance your offerings. In discussions at Arival, she shared insights on adapting to customer needs and preferences to refine and improve services. By responding to feedback and making necessary adjustments, you can improve customer satisfaction and loyalty.
Additionally, consider setting up a formal process for addressing negative feedback. This could involve training staff to handle complaints effectively and using feedback to guide staff development and operational changes. By demonstrating a commitment to continuous improvement, you build trust and credibility with your customers.
Arival Insider Pro Access members can enjoy a candid discussion with Renee Ventrice, Founder of Cork & Keg Tours, about strategizing for success as a tour operator in 2024 and beyond.
Exploring New Market Opportunities
Identifying and capitalizing on new market opportunities is essential for scaling your tour business. This involves understanding market and tourism trends, customer demographics, and emerging travel interests.
Begin by conducting market research to uncover untapped opportunities. Look for gaps in the market that your tours can fill, whether it’s a niche interest or an underserved geographic area. Utilize resources like the Arival 2024 U.S. Experiences Traveler report series and attend an upcoming Arival event to stay informed about the latest travel trends and potential opportunities, and to learn from fellow operators and travel industry experts.
Also be clever with finding the audience you want to reach. “I’ve seen tour operators be successful on Pinterest and it’s because nobody talks about Pinterest,” Bach mentions. “I’ve seen multi-day tour operators become successful because they went to their local public library and talked to the seniors in little meetings there and sold trips to Europe to her community in the area. Don’t follow the crowd, go where there’s an opportunity.”
Setting the Stage for Future Growth
As you continue the journey of growing your tour business, remember that success lies in the details—mastering your marketing channels, refining your online presence, and staying financially savvy are all crucial steps. By strategically managing your distribution through OTAs, enhancing your social media and SEO efforts, and adopting smart financial and pricing strategies, you’re setting the stage for sustainable growth.
The tour and activities sector is full of potential, and with the right strategies in place, your business can thrive as you focus on delivering exceptional experiences that set you apart. Your dedication to continuous improvement will not only attract more customers but also ensure that your business scales successfully in the years to come.
About the Author
Kate Cornell is an editorial and digital strategist with many years of experience in the experiences sector of travel, and has spoken at Arival on the topics of writing tour descriptions, and the “content conundrum.” She has led global editorial teams for travel brands including Viator and Tripadvisor, helped build startups such as TourismSolved, and worked behind the scenes as a content consultant for leading travel and luxury brands.
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