How to make money on excursions: the main business formats

How the tourism market will change in 2020: 12 predictions from experts

"Vestnik ATOR" brought together assessments and forecasts of leading experts of the Russian tour operator market regarding trends and factors that will determine the development of organized tourism in Russia in 2020.

CONTINUING MARKET CONSOLIDATION AND INCREASING COMPETITION BETWEEN MAJOR PLAYERS

According to the majority of the tour operator market participants, in 2020 the trend towards its consolidation and consolidation of the leading companies will continue.

“We have been observing the transformation and change in the rules of interaction between market participants for several years - some companies are strengthening their positions, others are losing their share and leaving. TUI Russia is an example of growth and strengthening of positions. Over the past three years, we have grown 7 times and in 2020 we plan to grow 2 times more, send 3 million tourists on vacation. It is clear that in the context of transformation, companies will begin to stake on building effective alliances, ”says Taras Demura, General Director of the TUI Russia tour operator.

There is also more detailed specifics. Thus, according to Taras Kobishchanov, General Director of the Russian Express tour operator, one of the main factors affecting the organized tourism market in the coming year may be the struggle for leadership between the two leading tour operators: TUI Russia and ANEX Tour, which was strengthened in 2019 by resources " Intourist ".

“Both of these groups are extremely ambitious, aiming to dominate the market and can afford to sacrifice some degree of profitability on the path to leadership. Taking into account the fact that the rest of the Big Five players - Coral Travel, PEGAS Touristik and Biblio-Globus - also do not intend to give up their positions, the 2020 summer season promises to be difficult, "the head of Russian Express notes.

Discounts on the market, which are used as a tool of competition, both among tour operators and among travel agencies, will not disappear as a phenomenon. “Tourists want to get the usual rest for less money, so discounts are still relevant and will be relevant in 2020,” notes Sergey Romashkin, general director of the Dolphin tour operator.

EFFECTIVE ALLIANCES WITH RETAILS AND DIFFERENTIATED AGENCY POLICIES

The travel agency market will be transformed along with the tour operator market. At the same time, tour operators will form an agency ecosystem around themselves, looking no longer at the number of partners, but at their quality. Accordingly, approaches to differentiated agency remuneration will continue to become more complex.

“It is clear that in the conditions of market transformation, all companies will rely on building only effective alliances. Agencies will give preference to tour operators offering the best product in terms of price-quality ratio, favorable terms of cooperation and loyalty in solving emerging problems. In turn, tour operators will make the main bet and give a higher commission to those partners who know how to manage sales and book in depth, ”explains Taras Demura from TUI Russia.

ONLINE SALES OF TOUR OPERATORS AND PACKAGE UNITS WILL GROW

Package tours will continue to go online: all major experts are sure of this. Classic travel agents will have to take into account that sales of "simple" package tours will be more effective online and reconsider their approaches to the target audience.

How the tourism market will change in 2020: 12 predictions from experts

Net profit: from 100,000 ₽

* Average data for Russia are used in calculations

The active development of domestic tourism provides entrepreneurs with the opportunity to open a profitable business on excursions. To do this, you need a minimum of cash investments and a maximum of personal abilities.

In recent years, the Russian tourism market has been experiencing changes. The unstable situation in the world, the growth of the exchange rate and the economic crisis have led to the fact that the number of trips abroad has decreased. Many Russians began to travel within the country or stay at home altogether. Interest in the historical and natural sights of Russia is actively growing, and tourists are increasingly turning to the services of excursion agencies and guides.

In recent years, domestic tourism has been actively supported by the state and is developing. Thanks to this, people began to travel around Russia more often, visiting interesting places. In such conditions, it is a good idea to open your own excursion business. Firstly, competition in this area is insignificant (with the exception of million-plus cities and resort areas). Each city in our country is interesting in its own way. If you love your city and know everything about it, and there are many interesting places with history and unusual sights in the district, then starting an excursion business is a promising option. Secondly, with competent work, the project pays off in a matter of months, and thanks to the popularity of such social networks as Instagram, such services are easy to promote.

You need to understand that business on excursions is not suitable for everyone. This idea is for those who like to work with people, travel, tell a lot; those who are interested in history, have organizational, oratorical and creative abilities. Only then should the idea be taken seriously.

Work on a project in the field of excursions should begin with an assessment of the tourism opportunities of a city or region. Explore what historical and cultural monuments are nearby, what natural places and interesting objects can attract the attention of tourists. Analyze the demand for various tours and excursions. Study the offers of competitors to form your unique offer at a favorable price. Choose the format of excursions and tourist attractions with which you will work. There can be many options.

City Tours

If you live in a city that has a story to tell and you know its history, you can make money on individual excursions for tourists. It is not necessary to live in a city with a population of over one million, which attracts tourists from all over the world. You can also organize an interesting excursion for visitors in a small town. And if you offer an unusual form of excursion, you can also attract the residents of the city.

The success of a business depends entirely on your abilities. The important thing here is the ability to keep the listener's attention, to speak correctly, to create a mood. After all, people go on an excursion not so much for some knowledge as for emotions. For them, it is a cultural form of entertainment. Therefore, a mournful listing of historical facts is unlikely to pass for an interesting excursion.

But if you think over a route, add elements of a quest, turn an excursion into a game, take you to unusual places of the city, show the most photogenic places, tell urban legends and, most importantly, evoke positive emotions, you will get a good service, for which they will be willing to pay.

Recently, city excursions with a specific theme are gaining popularity, for example: food tours, excursions to places of crime history, romantic walks, ecological trails, bike taxi excursions, individual walks for families, etc. A great way to stand out from the competition is to create excursions with elements of a show or performance along the route. Calculations for such a project can be found in this business plan.

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