Is your travel program as financially healthy as it should be?
Group travel is amazing, and the experience of leading people to experience great destinations around the world can be rewarding in itself. But good vibes aren’t enough to pay the bills.
If you’re a for-profit tour operator or travel agent, you know it’s important that your business generate revenue and profit. But even if you’re only into group travel as a hobby, you want to make sure it isn’t a hobby that’s losing you money.
There are a host of factors putting upward pressure on travel prices right now, and many of those things are out of your control. What you can control, though, are your operating expenses. Here are some expense categories you should always keep an eye on.
Printing and Postage
I’m obviously a big believer in the power of print for promoting travel, but I’m also more sensitive than most to the expenses that come with printing and postage. If mailing catalogs or flyers is an important part of your trip marketing strategy, it’s worth considering whether you can save some cash on those mailings. To minimize printing expenses, consider smaller books or a different paper type. And to keep postage in check, do a deep clean of your mailing list to make sure you’re only sending mail to qualified candidates who may actually buy your trips.
Merchant Fees
Anyone selling travel in 2026 should be offering ways for customers to pay online. Buyers love this feature, but it comes with merchant fees and other expenses for sellers. Though these fees are only a small percentage per transaction, they can really add up if you’re selling high volumes or high-ticket trips. It’s worth reviewing your merchant agreement annually to see if you can find a processor that offers a more advantageous fee structure.
Office Expenses
There are costs associated with the day-to-day operation of your business, but they don’t have to be as high as you may think. You should periodically examine your spending on things like office space, computers, software, phone plans and even office supplies. There’s a high likelihood you could live without some software or service you subscribe to, for example. And if most of your team prefers working at home, maybe you don’t need to lease office space.
Borrowing and Debt
Nothing will sink you financially faster than debt. Borrowing money can seem like an easy way to get through a tight cash-flow period, but if you make a habit of borrowing and carrying balances, you’ll soon find yourself in all kinds of trouble. Take a look at your program’s finances and make sure you’re not spending more than you earn. And create a plan for clearing whatever debt you might have — you’ll be glad to stop making those payments and to get that monkey off your back.
Group Leader Travel
When you operate a tour, either you or someone you hire will have to lead the group. You should make sure the group leader’s travel expenses are subsidized as much as possible. Guide and driver comps should be included in every hotel, restaurant and attraction you book. And for any travel expenses you can’t get covered by a vendor, spread those costs out among the entire group. As a group leader, you should always be traveling free.
