 Increasing the profit potential of your tourism business can be achieved by:
- Increasing capacity of your product by purchasing extra plant or equipment, for example, buying bigger tour vehicles or building more cabins.
- Increasing sales of your product by attracting more visitors.
- Improving yield by generating more income from each customer. This is especially important where you are limited in your capacity to have more customers.
- Marketing to increase occupancy or sales.
- Diversification by introducing new products or services, for example, a campground could start offering bush tucker tours, a tour operator could hire out camping gear or sell souvenir hats and shirts.
- Reviewing expenses by renegotiating with suppliers, reviewing purchasing methods and keeping personal expenses separate to the business. Setting and sticking to a budget can help.
The Quality Tourism website has links to a Tasmanian report titled 'How to Make More Money From Your Accommodation Business' designed to help small to medium sized accommodation businesses increase the yield from their operations and to enhance the viability and long term stability of their business. The report is a little old, but the tips and techniques are all still relevant. Click here and search for 'money'.
Free Online Short Courses
The Queensland Department of State Development and Trade offers a range of free online short courses which will help you to analyse and improve your profitability, including topics such as:
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