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Tourism Business Insights
Practical articles for tourism operators covering profitability, marketing, distribution, operations and the changing visitor economy.
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Revenue is a glamour number | Sarah Colgate
Revenue might look impressive, but it doesn’t tell you whether your tourism business is actually profitable. Here are the four numbers that reveal what’s really happening behind the scenes.
Profit Per Passenger: The Metric That Makes (or Breaks) a Profitable Tourism Business | Sarah Colgate
Revenue and bookings don't guarantee a profitable tourism business. Profit per passenger reveals whether your pricing, distribution channels, and operating costs are truly delivering sustainable returns. Learn why this overlooked metric matters, how static pricing and agent commissions affect margins, and the practical steps you can take to improve profitability without simply adding more passengers.
Get Profitable First, Then Think About Growing | Sarah Colgate
Growth isn't always the answer. Many tourism operators assume adding more tours will increase profits, but expanding before your current business is profitable can create more stress, thinner margins and cash flow problems. Drawing on real experience growing Aquaduck, this article explains why understanding your net profit per passenger, commission costs, pricing and cash flow should come before expansion. If your existing tour isn't generating healthy profits, adding another product often multiplies the problem rather than solving it. Learn the financial measures every tourism operator should know before investing in growth.
Busy Season but Thin Margins? | Sarah Colgate
Full tours, strong occupancy, and a packed calendar should mean healthy profits. Yet many tourism operators find themselves working harder than ever while margins remain stubbornly thin. The problem usually isn't demand, it's what happens behind the scenes. From OTA commissions and operational complexity to owner dependency and poor financial visibility, this article explores the five most common reasons busy tourism businesses struggle to turn growth into profit and what you can do about it.
A profitable year and a bank account that scares you in July | Sarah Colgate
Seven in 10 tourism operators were profitable last year, yet many still face sleepless nights when winter arrives. The reason is simple: profit and cashflow are not the same thing. While profit looks back over the year, cashflow determines whether you can cover wages, bills, and operating costs during quieter months. Discover why winter catches even successful operators off guard and the simple exercise that can reveal thousands of dollars hiding in your booking channels.
What Is Quietly Killing Margins in a Hospitality Business? | Sarah Colgate
Hospitality margins rarely collapse. They erode, quietly, in a few predictable places. Here are the usual culprits, and how to find which one is costing you the most.
How Do I Make an Event Venue Profitable Between Bookings? | Sarah Colgate
An event venue does not fail on the big days. It bleeds in the empty ones, while the fixed costs keep running. Here is how to make the gaps between bookings pay their way.
Why Is My Restaurant Full but Barely Breaking Even? | Sarah Colgate
A full room feels like success, but full and profitable are not the same thing. Here is why a busy restaurant can still barely break even, and the number most owners never check.
How Do I Know if My Tourism Business Has a Profit Leak? | Sarah Colgate
A profit leak rarely announces itself. The business just works harder for less. Here are the signs an operator looks for, and how to find the leak before it costs you another year.
What Should a Tour Operator Do Before Raising Prices? | Sarah Colgate
Most operators raise prices too late and too timidly, then worry they have gone too far. Here is the work to do before you change a single number, so the increase actually holds.
Why Is My Tour Business Busy But Not Profitable? | Sarah Colgate
Booked out but the bank balance does not show it? The reason is almost always one number most operators never calculate. Here is where the profit actually goes, and how to find it in your own business.
More Bookings, Less Profit: The Margin Red Flags in Tourism | Sarah Colgate
More bookings should mean more profit. But in tourism, growth can quietly increase stress, complexity, and costs while margins shrink. From discounting and commission-heavy channels to inefficient operations and the wrong guest mix, these warning signs reveal why busy businesses don’t always become profitable.
Is your tourism business busy but Not Profitable?
Many tourism operators rely on financial reports to measure success, but those reports only show what has already happened. They rarely explain why profits are leaking, why staff feel overwhelmed, or why strong bookings don’t translate into stronger margins. In this article, we explore how a Business Analysis connects financial results with daily operations, helping tourism businesses uncover inefficiencies, identify their most profitable products, and make smarter decisions for sustainable growth.
Your Next Profit Boost Isn’t More Guests; It’s More Value Per Guest
Tourism businesses don’t need more bookings, they need more value per guest. Stronger margins come from retention, alignment, and designing experiences that generate repeat visits and referrals. Here’s how to grow profit without increasing pressure.
7 Smart Strategies for Tourism Operators to Beat Rising Expenses | Sarah Colgate
Tourism operators are facing rising costs and softer demand, creating financial challenges across the industry. From smarter pricing strategies to diversifying revenue streams, discover 7 actionable ways to protect your margins and thrive. These proven tips will help you stay profitable without compromising quality or guest experiences.
How to Develop Combo Packages That Grow Sales | Sarah Colgate
Developing combo packages with complementary tourism operators boosts revenue, extends guest stays, and opens new sales channels. Understanding customer desires, smart pricing, and seamless booking are key to increasing value and conversions. By partnering strategically, tourism businesses can create high-performing packages that sell better, scale faster, and stand out.
How to Effectively Manage Cashflow in a Tourism Business | Sarah Colgate
Effectively managing cashflow is vital for tourism operators, especially given the seasonal fluctuations in demand. Understanding your cashflow cycle, budgeting for off-seasons, and diversifying revenue streams are crucial steps to ensure liquidity throughout the year. By implementing strategies such as flexible pricing, encouraging prepayments, and leveraging technology, you can create a robust cashflow management plan that supports both daily operations and long-term growth. With the right approach, your tourism business can thrive, even during challenging times.
Boost Your Revenue: How Accommodation Businesses Can Increase Sales by Expanding Add-On Offerings | Sarah Colgate
In the tourism industry, enhancing the guest experience is key to driving revenue growth. While attracting new customers is important, maximizing revenue from each booking can significantly impact your bottom line. Expanding your range of add-on offerings is a highly effective strategy to achieve this. From local experience packages to in-room amenities, convenience services, and themed packages, each add-on can enrich the guest's stay while creating additional revenue streams. By curating add-ons that align with your guests’ interests and needs, you can differentiate your business in a competitive market and boost your profitability.
The Hidden Costs of Discounting | Sarah Colgate
Discounting may boost bookings temporarily, but it devalues your brand and harms long-term revenue. Instead of cutting prices, try value-added packages, loyalty programs, or unique promotions to attract customers while maintaining your brand’s integrity. Protect your business’s worth and focus on sustainable growth strategies.
9 Strategies to Maximise Your Tourism Business Profits | Sarah Colgate
Standing out in the tourism industry and boosting profitability requires a blend of innovation and strategic planning. At Aquaduck, for example, we enhanced our core offerings and improved our customer-centric approach, resulting in a 36% sales increase in just 18 months. Whether you're looking to diversify your services, optimise pricing, or enhance customer experiences, these strategies can pave the way for greater success and sustained growth in your tourism business.
Read more on my blog to explore these strategies and take your business to the next level.
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