Juggling client requests, reviewing documents for the umpteenth time and working with suppliers to make sure every detail is just right: A day in the life of a modern travel pro is packed.
That's not even getting into the never-ending tasks that come with running a business, from marketing for new clients to perfecting workflows to impress the ones you already have.
It’s incredibly demanding, and I know how busy you are. And yet, I'm about to tell you why it's worth carving out a teensy bit of time for math.
I can feel you laughing through the screen.
But before you click away, let me ask you this: Do you want above-average clients? Then you need to know your averages.
The simplest way to plan for the future of your business is to analyze your past. We do this by running the numbers. Understanding sales data sounds boring and tedious, but it truly is the gift that keeps on giving.
It makes it easier to set goals, plan your marketing, create boundaries and make decisions for your business. Setting up a system doesn't take much effort, and it will save you time in the long run when you can make data-backed decisions.
Not sure where to start?
First, Gather Your Data
Begin with gathering your data. Already have a system in place? Go there. Otherwise, a spreadsheet will do the job. Create an Excel or a Google Sheet to do math for you.
If you are setting up from scratch, I recommend the following columns for your sheet: Month Booked, Client Name, Number of Passengers, Supplier Name, Destination, Travel Month, Number of Nights, Total Sale, Fee and Commission. Then, fill in your sheet with your data from past trips sold. Feel free to split this out by year or season.
Once you have your dataset in one spot, it's time to analyze it. Use filters to isolate any data and find the key performance indicators you need.
These are the metrics I recommend everyone look at:
- Number of trips
- Total sale
- Total revenue (also with totals split by fee and commission, if applicable)
- Average sale per trip
- Average revenue per trip
Then, add in any of the following categories that make sense for your business:
- Average sale or revenue per person
- Average sale or revenue per trip night
- Average sale or revenue per room
- Most popular destination(s)
- Most popular month(s) to travel
- Biggest booking month
- Percent of repeat clients
- Percent of new clients
- Percent of referrals
- Average sale per supplier
- Average sale per destination
Next, Analyze Your Metrics
Did you even realize how much detail you were sitting on in your past sales history? Once you have everything set up, take some time to analyze what it means for your business.
Did you even realize how much detail you were sitting on in your past sales history?
For example, is there a destination you've done many trips for, but that isn't actually producing much revenue? Consider cutting it loose and referring those requests to save time for more profitable trips.
Maybe there are a suppliers you adore because they make your life easy and save you so much time — but they only make up a small portion of your overall sales. Ramp up your marketing to their destinations/trip types and drive more business there.
Finally, Set Goals and Work Backward
This is also a great time to set goals. Think about what you want those numbers to look like one year from now. Do you want more trips overall? Or more to a particular destination? Get specific.
Once you have your goals, you can work backward. Develop marketing campaigns to bring attention to the areas you want to grow. Adjust your messaging to be more effective. Create boundaries by declining or referring requests that do not match your goals.
If you have not gone over your sales data this deeply in the past, it may take a little bit of time this go-around. Going forward, make it part of your workflow and input those numbers into your tracker after each trip or on a schedule, such as once per month.
Imagine how great it will feel to have all this insight at your disposal when you need it. Just set some time aside to get cozy with your numbers. While you'll still spend most of your days managing client chaos, moving to a data-driven style of running your business will ensure you are getting clients and trips that support your business goals and growth.
