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Safari · Tool 06

Luxury vs. Budget Package Profitability Tool

Compare the profitability of your different safari packages to understand which strategy drives your bottom line: high-margin luxury or high-volume budget.

/ 01

Find Your Profit Driver

Discover if high margins or high volume is more profitable for your lodge.

/ 02

Optimize Pricing

Make data-driven decisions on pricing for each of your packages.

/ 03

Focus Marketing

Allocate your marketing budget to promote the most profitable package type.

The calculator

Run the numbers

Package Profitability Comparison

Luxury Package

Budget Package

Results

Enter values and click Calculate to see results

The theory

Understanding Package Profitability.

A successful lodge often caters to different market segments. This tool helps you analyze the two classic strategies: high-margin, low-volume (luxury) versus low-margin, high-volume (budget). It's crucial to understand which strategy, or what mix of the two, generates the most overall profit.

/ Formula
  • Profit per Package: Shows how much you make on a single sale. Luxury packages typically excel here.
  • Profit Margin: The percentage of revenue that is profit. This shows the efficiency of a package.
  • Total Profit: The absolute profit generated (Profit per Package × Packages Sold). This is the ultimate measure of a package's contribution to your bottom line.
Total Profit = (Price − Cost) × Packages Sold ; Profit Margin = (Profit / Revenue) × 100
/ Industry standard

Sometimes, a package with a lower margin can be your most profitable product if it sells in high volumes. Use this calculator to find the perfect balance for your lodge.

Questions, answered

Frequently asked questions.

Not necessarily. A high profit margin is great, but if you only sell a few of those packages, your total profit might be low. Conversely, a lower-margin package sold in high volumes can generate more total profit. The goal is to maximize total profit, which is a balance of both margin and volume.
Include all variable costs associated with the package. This means accommodation costs (housekeeping, utilities for the room), food and beverage, activity costs (fuel, guide time), and any other direct expenses. Don't include fixed costs like marketing or administrative salaries.
No, the luxury package still serves a vital purpose. It enhances your brand's prestige, attracts a different type of clientele, and likely has a high profit margin. It also acts as an 'anchor price,' making the budget option seem more reasonable. The two packages often work together to maximize overall revenue.
Focus on cost control. Can you source F&B more efficiently? Can you optimize game drive routes to save fuel? Also, look for opportunities to sell high-margin add-ons to budget guests, like a private dinner or a walking safari, which can boost the profitability of their stay.
You can still use this tool to great effect. Use the 'Luxury' side for your current package and the 'Budget' side to model a hypothetical new package. This allows you to test different pricing and cost scenarios to see if introducing a new package type would be a profitable move.
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