7 Smart Strategies for Tourism Operators to Beat Rising Expenses
Tourism operators are feeling the pinch.
Costs are going up; food, fuel, wages, energy and guests are watching their wallets, too.
The double challenge of rising expenses and softer demand has made financial sustainability a real concern for many in our industry.
If you’re a tourism business owner feeling squeezed and unsure of how to stay profitable, you are not alone.
I’ve worked with many operators facing the same pressures and the good news is, there are practical, proven strategies that work.
Here are my 7 ways you can protect your margins and thrive, with my personal tips added for each.
1. Know Your Numbers, Own Your Margins
Being busy isn’t the same as being profitable.
Without clear visibility of your margins, you can’t make smart decisions about pricing, packages, or cost-cutting.
My tip:
Set aside 30 minutes once a fortnight to review what’s making money and what’s not. Use a simple Excel spreadsheet or software like Xero + Float to track profit per product.
If you don’t love numbers, delegate it or ask me for a template I’ll happily send one over.
2. Cut Costs, Without Cutting Corners
You don’t need to slash quality to save money.
Small changes can add up fast. How often are you looking through every expense line? Start doing that on a regular basis to ensure costs are minimised and controlled.
My tip:
Go paperless where you can. Swap printed brochures for QR codes.
Review all recurring subscriptions (you’ll be surprised how many quietly stack up).
Bonus win: these changes can actually improve the guest experience and align with your sustainability message.
Cut Costs, Not Corners: Proven Strategies To Keep Your Business Lean
3. Refocus on High-Margin Experiences
Some tours or products are more profitable than others so why not spotlight those?
Promote what makes you the most money. Not necessarily what is the most expensive. Know your margins and promote what makes a profit first!
My tip:
Do a “profit-per-guest” breakdown. What experiences cost less to run but deliver great value?
Turn them into premium packages with a few small upgrades.
If something’s not selling or is hard to deliver let it go. Simplifying your offer is powerful.
4. Diversify Your Revenue Streams
If you’re relying on one audience (e.g. international travellers or weekenders), it’s time to expand your reach. Look at what others are doing in your destination.
How can you adapt or better deliver your product to a new audience?
My tip:
Think beyond tourism. Can you offer midweek corporate bookings, local wellness days, or creative workshops?
Add easy upsells like local produce, photography packages, or gift vouchers.
Local markets are often overlooked and they can be incredibly loyal.
5. Collaborate to Share Costs & Boost Reach
You don’t have to do everything alone.
Partnerships = shared effort, lower costs, and a bigger audience. Partner up and save on marketing spend by cross promoting with another business.
My tip:
Team up with nearby operators to offer joint packages like a “day in the region” deal or a local food and tour combo.
Share the cost of social ads or print brochures.
Bonus: guests love curated itineraries that take the planning off their plate.
6. Use Smart Pricing Strategies
Don’t be afraid to raise prices if you’re increasing perceived value. It’s about what the guest gets, not just what they pay.
My tip:
Bundle inclusions so the guest sees greater value (e.g. “includes local snack + eco gift”).
Introduce peak and off-peak pricing to smooth out demand and increase yield.
Always communicate the why behind your price, guests appreciate honesty and purpose.
7. Market Smart, Not More
You don’t need a big marketing budget, you need targeted, consistent activity.
My tip:
Prioritise your Google Business Profile and reviews, it’s free and powerful.
Send an email to past guests, they’re your easiest and most cost-effective bookings.
Need help with digital marketing?
That’s one of our sweet spots at Exceptional Experiences, we can take the whole thing off your plate or train your team to do it right.
My Final Thoughts
Yes, the economy is tight.
Yes, costs are up.
But with smart planning, clear data, and creative marketing, your business can stay strong and profitable.
You don’t have to cut your prices or burn out trying to do it all. With the right strategy, you can drive direct bookings, reduce unnecessary spend, and create real growth, even in a challenging market.
Need support?
At Exceptional Experiences, we help tourism businesses build sales and marketing systems that actually work whether that means mentoring your team, refreshing your strategy, or doing it all for you.
👉 Book your free discovery call here
Let’s make your business more resilient, more profitable, and more enjoyable to run.
