Question 1

What costs should be included in the 'Total Cost of Excursion'?

Accepted Answer

You should include all direct costs associated with running the excursion. This includes transportation (bus, boat), guide fees, entrance tickets to attractions, any included meals or drinks, and commissions paid to local partners.

Question 2

How does passenger participation rate affect ROI?

Accepted Answer

Participation rate is critical. Many excursion costs (like hiring a bus or a guide) are fixed, regardless of how many passengers attend. A higher participation rate spreads these fixed costs over more paying guests, increasing the total revenue and dramatically improving the ROI.

Question 3

Is a low-ROI excursion always a bad idea?

Accepted Answer

Not necessarily. An excursion might have a low ROI but be a major selling point for the entire journey (a 'loss leader'). It could be a unique, exclusive experience that attracts customers to book the trip in the first place. However, it's important to know the numbers so you can make that strategic decision consciously.

Question 4

How can I increase the ROI of my excursions?

Accepted Answer

To increase ROI, you can either increase revenue or decrease costs. Try negotiating better group rates with your partners, combining smaller groups to fill a bus, or bundling the excursion with an onboard experience (like a themed dinner) to increase its perceived value and price.

Question 5

What's more important: ROI or Profit Per Passenger?

Accepted Answer

Both metrics tell a different part of the story. ROI is great for comparing the efficiency of different types of excursions (e.g., a low-cost walking tour vs. a high-cost helicopter ride). Profit Per Passenger tells you the actual dollar amount each guest contributes to your bottom line. Use ROI to assess efficiency and Profit Per Passenger to assess overall financial impact.

Excursion Add-On ROI Tool

Results

Understanding Excursion ROI

Frequently Asked Questions

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