Remember the days when first starting your own tour company? When you had to come up with a business plan that included a market analysis, financial projections, partnership opportunities, and more. Well, this type of strategic planning should be an annual exercise for any successful business in the travel industry.
I’m not suggesting you need to write another 20-50 page document — that would be excessive. But it’s crucial to re-evaluate your tour company, assess its current position, and plan its future direction. In case you’re wondering, the end of the year would be an ideal time for this strategic planning process.
That’s because you’ll have 365 days of data, experience and insight. You’ll have all the information you need to develop a solid marketing plan and business strategy for the coming year, which are essential given the ever-changing nature of the travel and activities industry.
The winds are constantly shifting in our sector, but you can safely sail through the storm with a well-crafted strategic plan. Think of it as your rudder, helping you take control of where you’re heading, make the most of new opportunities, and thrive in challenging times.
What exactly is strategic planning?
Let’s make one thing clear from the very beginning: a yearly strategic plan is not your business plan. However, there are similarities in that it’s more big-picture than day-to-day operations. Strategic planning is about reflection and adaptation. It’s for pinpointing what went well and what didn’t over the past year while considering your current position and other influencing factors — both internal and external.
For example, Google taking over online travel is an external factor. While you can’t control this, you can plan how your business reacts to its impact. On the other hand, raising new capital is internal. You get to choose the best way to use the extra funds, such as building a better brand, expanding your team, or opening another location.
Overall, the process allows you to step back and examine everything with a fine-tooth comb. Afterwards, you’ll benefit from knowing how to take action, change course if necessary, give your team members direction, and prioritize projects in the upcoming year.
As might be expected, strategic planning isn’t a one-person job. It’s a team effort, which means enlisting the help of key stakeholders. Whether that requires actively involving them in the process or keeping them in the loop with purposeful and consistent communication.
What does a strategic plan look like?
Before diving into strategic planning, it’s essential to understand what you’ll be covering. In other words, it’s best to have a plan for your plan. If you skip this step, especially the first time, you might miss something important and fail to make the most of your efforts.
That said, there are generally eight elements included in every strategic plan. Of course, you can go more in-depth, but this is an excellent place to start. So, let’s quickly go over what they are:
Vision statement
A vision statement is your chance to dream big. It’s what you hope your tour company will eventually become. Of course, you would’ve crafted a vision statement initially with your business plan, but it doesn’t hurt to Review and ensure it still aligns with your long-term aspirations for your travel business. Plus, it will set the tone and provide a foundation for your strategic planning.
Mission statement
Again, you’re probably already familiar with this part. If not, your mission statement describes what your tour company does and identifies why you do what you do. Since your mission drives your business, it’s a good idea to start the strategic planning process by reminding everyone of the primary objective.
Core values
Everything you do should align with your core values — they’re the building blocks of your tour brand. If you steer away from them, both your guests and team will likely get confused. When developing a strategic plan, you can use your core values to determine whether to pursue a specific tactic or not.
Market analysis
The best strategies are research-based; that’s where a market analysis comes into play. A thorough market analysis provides a high-level perspective on your business environment, including the competitor landscape, your target audience’s behavior, tourism industry trends, and potential disruptors.
SWOT analysis
Following your market analysis, you should have a good jumping-off point for your SWOT. As an acronym for Strengths, Weaknesses, Opportunities, and Threats, a SWOT analysis helps you get into the nitty-gritty. Here, you’ll go over what you do well, what you can do better, what might give you a boost, and what is standing in your way.
Long-term goals
Set SMART (Specific, Measurable, Achievable, Realistic, and Timely) goals that align with your vision. These targets will help your team stay on track and work towards your ultimate business goals.
Action plan
A strategic plan is nothing without an action plan. To turn your vision into reality, you need to plot out how your team will achieve the goals. Your plan can be as detailed or as flexible as you like. But it should clearly communicate the steps involved and who will be responsible for doing what by when, while reflecting the current workload and workflow.
Executive summary
The executive summary is the last thing you complete in your strategic plan. As you can tell by the name, it merely summarizes the above sections so that your key stakeholders have a solid overview they can quickly understand and get behind.
5 important strategic planning steps
Now that you know what makes up a strategic plan, it’s time to get the ball rolling before the end of the year. Of course, you can execute the process as early as you like and as often as you like. Either way, you can go about it using the same procedure:
Conduct market research
Where did you think you’d get the data for the market analysis in the strategic plan? Studying up beforehand ensures that you and your team come prepared with answers to the tough questions, saving you tons of time and doubt. You can find this information by reading the latest tourism news, downloading niche reports, joining relevant webinars, and sifting through your booking data.
Ask your team for feedback
Who knows your operation better than your team — especially your tour guides who interact one-on-one with your guests on a daily basis? You might be surprised by what they have to say and how much their feedback will help in the strategic planning process. The easiest way to do this is by sending out a survey and asking open-ended questions.
Host a Start, Stop, Continue session
For your SWOT analysis, you’ll need to know what your tour company does well and what it doesn’t. Again, you can prepare for this ahead of time with a Start, Stop, Continue session. As the title suggests, the exercise is simply a brainstorm of what your business should start, stop and continue doing. Depending on the size of your staff, you can drill down on these items on a department-wide or individual basis.
Get everyone together in the same room
Once you have a strategic plan outline and resource materials, you can gather those you want to be involved. Just remember, strategic planning is often a tedious process; the meeting will take more than an hour. So make a full day out of it, break out the refreshments, and get your team comfortable. Or consider booking a weekend retreat that’s centered around strategic planning, team building, and fun activities.
Put your strategic plan into practice
It’s one thing to write a strategic plan, and another to take action. But a good place to start is by generating buzz with your staff. Send out an internal memo or go over it in a town hall meeting; this will give everyone a sense of direction and purpose for the new year.
Next, you’ll want to share your strategic plan with board members, partners, and other interested parties. How you go about communicating with them is up to you and your unique business dynamics. Once everyone is up to date — internally and externally — you can allocate resources for the action plan and launch your strategy.
Optimizing your tour company’s operations
As you develop your strategic plan, consider these key areas that can significantly impact your tour company’s success:
Pricing Strategy
Develop a pricing strategy that reflects the value of your tour packages while remaining competitive in the market. When setting your prices, consider factors such as seasonality, target customers, and operating costs.
Marketing Plan
Create a comprehensive marketing plan that includes various channels such as social media, email marketing, and content marketing. Tailor your marketing efforts to reach your target audience effectively.
Online Presence
In today’s digital age, having a strong online presence is crucial. Invest in a user-friendly website with online booking capabilities, and maintain active social media profiles to engage with potential customers.
Financial Plan
Develop a detailed financial plan that includes a balance sheet, cash flow and financial projections. This will help you manage your finances effectively and attract potential investors if needed.
Operations Plan
Create an operations plan that outlines how your tour company will function on a day-to-day basis. This should include details on itineraries, tour guide management, and customer service protocols.
Final thoughts
Developing a strategic plan for your tour company is a crucial step in ensuring long-term success in the competitive travel industry. Let’s recap the key takeaways from this guide:
- Annual Strategic Planning: Make strategic planning an annual exercise to stay ahead in the ever-changing travel and activities sector.
- Key Elements: Include these eight essential components in your strategic plan:
- Vision statement
- Mission statement
- Core values
- Market analysis
- SWOT analysis
- Long-term goals
- Action plan
- Executive summary
- Team Effort: Involve key stakeholders and team members in the planning process for diverse insights and buy-in.
- Five-Step Process: Follow these steps for effective strategic planning:
- Conduct market research
- Ask your team for feedback
- Host a Start, Stop, Continue session
- Get everyone together for a planning session
- Put your strategic plan into practice
- Operational Focus: Optimize key areas of your tour company, including:
- Pricing strategy
- Marketing plan
- Online presence
- Financial plan
- Operations plan
Ready to take your business to the next level? Streamline your operations and boost your strategic planning efforts with Checkfront, the leading booking system for tour operators and activity providers. Our comprehensive platform can help you manage reservations, optimize your pricing strategy, and gain valuable insights into your performance.
Take your business to the next level
Online bookings. Flexible pricing. Outstanding support.
