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.
Discover if high margins or high volume is more profitable for your lodge.
Make data-driven decisions on pricing for each of your packages.
Allocate your marketing budget to promote the most profitable package type.
Luxury Package
Budget Package
Results
Enter values and click Calculate to see results
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.
Key Metrics:
- 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.
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.
Frequently Asked Questions
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