All businesses experience demand fluctuations, and the tourism industry is no exception. Travel agents would agree how challenging the low seasons can be regarding profits and revenue. However, the modern world is about finding the right solutions with strategic plans.
Multiple factors contribute to the relatively lower travel bookings in specific seasons, and ‘weather’ tops that list. Hurricanes, extreme rainfall, and excessive heat waves disturb travel plans. These conditions lead to the off-season challenges, causing a decline in revenue. According to a report by CNN, more than 62000 people died heat-related deaths in 2022 in Europe. This blog discusses the various ways of navigating the off-season hurdles to help travel agencies turn the next off-season profitable.
Tourism seasonality explained
Off-season or low season in the travel industry is the time when traveler traffic decreases after a peak season. This time of the year poses serious challenges to tour operators whose earnings depend on these travelers. A drop in the number of tourists can be due to many reasons:
- Seasonal changes and weather conditions of popular tourist-attracting countries or places.
- Festivals and other public holidays.
- Change in day and night hours.
Impact of low season on a travel agency business
It is imperative to first discuss the impact of low season on travel agencies. Reduced bookings lead to decreased profit and revenue for tour operators, heavily impacting their business. Here are the 3 major aspects affected by low-season travel.
Lower profits
Minimal bookings directly impact the profits made by travel agencies. Since very few people travel during the off-season, travel companies are compelled to offer services at relatively lower prices. This leaves them with a substantially low profit.
Increased competition
During the off-season months, all tourism companies become relentless with their business. This leads to strong competition among the tour operators as they adopt new business strategies for making more bookings.
Lesser sales
Only trips made during the off-season are either work-related or emergency visits. Though travelers still make bookings for leisurely activities, the number of such customers is relatively low. This gives a lesser number of sales for travel agencies, affecting their business.
How to turn the off-season into peak season
Selective targeting of destinations
Low season is a major buzzkill but travel companies can turn the tables by focusing on specific locations. France was the most visited country for inbound travelers in 2023, followed by Spain, the United States, and Italy. Travel agencies can focus on the months when the least number of travelers visit these places and instead focus on creating tourism packages for other countries. For example, Seychelles, Singapore, Indonesia, Maldives, Japan, and Peru are some countries that can be visited at any time of the year.
High discount offers
Off-season is all about the sales. Travel agents should first focus on increasing their sales and later worry about the profits. The ideal way of garnering more bookings is by providing attractive offers and packages to travelers. Travel companies can also run a week-long campaign where they provide bookings at discounted rates. With these offers in place, the agency’s portal will witness a greater amount of online traffic, finally leading to marginal profits.
Build an off-season marketing strategy
An influential marketing strategy has the power to change the course of business. By creating an off-season marketing strategy, a tour operator or travel agency can outshine its competitors and enjoy greater profits during the low travel season. Here are some low-season marketing strategies travel agencies can adopt:
- Promoting less popular off-season destinations is an effective way of diverting your customers toward a new travel experience.
- Early bird discounts work like magic in the modern world. Travel agencies can offer early bird discounted rates on train and flight tickets to selected travelers.
- There were over 5.45 billion internet users in the world till July 2024. Travel companies can utilize this online population by promoting their business and services on social media. Since off-seasons are relatively slow, travel agents can focus more on social media marketing and generate higher online revenue.
Focus on community engagement.
Off-season gives travel agencies ample time to reconsider their community engagement tactics. Having a pool of loyal customers and travelers is bliss. By creating a community engagement forum, travel and tourism companies can increase their popularity in the market. Actively involving the community with your online travel content boosts engagement and reliability.
Wrapping Up
Seasonality is a part of the travel industry, and Tour operators should not be scared of it. The best way to handle this season is by determining the months or seasons that see a dip in online bookings and creating strategies. In this blog, we discussed the various strategies that can be adopted by travel agencies to turn their off-season into a profitable and productive business season. Want to learn more about such tips? Follow TBOHolidays!
Off Season Strategies for Tour Operators FAQs
Can travel agents provide virtual tours during off-seasons?
Absolutely, travel agencies can integrate AR/VR technologies into their online travel portals to provide virtual tours to their customers. They can include cultural performances and other activities for an immersive virtual travel experience.
Iceland, Greece, and Thailand experience a steady flow of tourists even during the off-season period.
Pratyush Kumar Srivastava is a seasoned expert in B2B travel writing with years of experience in the industry. With a deep understanding of the intricacies of travel technology, supplier relationships, and market trends, Pratyush offers valuable insights to help businesses optimize their travel booking strategies. Passionate about innovation and efficiency, he is dedicated to guiding travel agencies through the complexities of modern distribution channels to achieve growth and success.