• Giuseppe Crinò

FINANCIAL ISSUES BEHIND A BIKE TOUR PACKAGE

Aggiornamento: 2 dic 2020

How to build a bike tour package functional to a winning business relationship with B2B customers?


In previous posts we have seen aspects related to the safety of a bike tour package and the importance of the beauty of the territory that the trip goes through.

I addressed the theme related to the importance of having a reliable network of providers in the area where the tour develops. We have also seen the criteria behind the choice of the accommodations that are fundamental to the bike tour.

In this post I would like to give an overview of the technical, economic and relationship aspects. These must also be highlighted in the design of the offer and take care of them along the building process of the relationship with the tour operator customer.


NOT ONLY TOUR OPERATORS


In the next few days, we will also publish an article dedicated to bike shops, another interesting category of customers with whom Bike Italy is starting a constructive collaboration.

The connection between the sale of bikes and their use in a safe and relaxing context such as a bike tour, can be a natural extension of the business of a bike shop that deserves a separate discussion.


I remind those who read this article that Bike Italy is a tour operator that specifically addresses business operators in the area of cycling trips, who in various ways, are interested in the sale of cycling packages in Italy. This means, tour operators who want to include bike trips in Italy in their catalogue, bike shops, bike teams.


The process described in this post is not the only one, every operator may have his own; The one described here is what I follow and that over time I have seen effective.


FROM WHERE DO I START?


· The needs of my client.

· The selling price.

· The margin.


The strategy is a long-term one with the aim to create solid and productive relationships over the time, satisfactory to both parties.

The starting point, therefore, is always who stays in front of us. The first survey concerns the prospect tour operator's reference market, with regard to the customers to whom it is addressed.


· What does he propose in his catalogue?

· Self-guided?

· Guided tour?

· Family tour?

· What is the target he is targeting?

· What is the duration and difficulty level of the itineraries proposed in his catalogue?


THE OVERVIEW OF THE NEEDS OF THE POTENTIAL CUSTOMER


Having the answers to the above elements will allow us to have a general picture of our prospect.

A second step is about the price:


· What is the average price at which the tour operator sells its packages?

· What is the average margin satisfactory to him?


The two points mentioned above are crucial in order to ensure the profitability of the commercial relationship.

The quality of our suppliers and the best prices we manage to tick off, are essential to be able to build a high-quality offer that can remain within price ranges and allow us to remain competitive.


We need to consider also that the price valuation game must be played over a very large area. In fact, our customer often has similar packages in the catalog that includes other regions of Italy or/and other Mediterranean countries.

I’m firmly convinced that the game must be played on the quality of the service offered and not around the price; competing on the price is a loser strategy.

However, the price must still be considered as part of the process. It is a parameter that needs to be aligned with the prices of the other trips of the catalogue of our client, to ensure that our package does not remain in the catalog just for show.


GROWTH PROSPECTS


The margin for Bike Italy is a consequence. If the path we have followed so far has worked in all its part, we will have been able to have opened a new sales channel, but above all we will have started it on a solid basis of clarity and with potential growth prospects.

The simply logical process described here leads us to the acquisition of a new customer, with a strategy that takes us to a solid and long-term cooperation.

It must tend to be a win-win relationship. We win if our customer wins and he wins if his client wins.


In summary, in these twenty years we have been able to verify that:


· meet the customer's needs works

· the price must be in line with my client's offer

· Our profit margin is a consequence and not the starting point


This criterion proves to be a winner for everyone:


· for the customer of my client who buys a safe trip, studied in all its part and composed of quality services, in line with the price paid.

· for my client, the operator, who has the satisfactory margin and a solid partner on the territory with whom to build a solid long-term relationship.


Giuseppe Crinò


Are you a tour operator interested in increasing your turnover by adding a new tour in Italy?


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