Tour operator KPIs and cash flow: the numbers to watch
Seven numbers show which tours make money, and a cash forecast shows when money will run short.
Watch seven numbers every month
| Number | How to work it out | What it tells you |
|---|---|---|
| Revenue and profit per departure | What a departure took in; for profit, minus guide, driver, vehicle, entries and commission | Which tours and times to keep, change or drop |
| Occupancy | Seats sold ÷ seats offered: 8 guests on a 12-seat bus is 67% | Where to add departures or raise prices, and where to cut |
| Conversion rate | Bookings ÷ visits to your website | Whether your tour pages and checkout work |
| Average booking value | Sales ÷ bookings | Whether private tours and extras raise what each booking brings |
| Cost of a booking, by channel | The commission a booking site or agent keeps; for ads, spend ÷ the bookings they brought | Which channels to push and which to drop |
| Rating | Your average on each site, and the month's new reviews | Whether quality holds as you grow |
| Cancellations and no-shows | Cancelled or no-show bookings ÷ all bookings, by tour and channel | Whether your reminders and booking rules work |
No reliable public benchmarks exist for tours' conversion, cancellation or no-show rates. Measure yours for three months, then improve on them.
Forecast your cash 13 weeks ahead
Profit isn't cash: booking sites pay after the tour, and costs keep running when bookings slow. Give each week a column:
| Line | What goes in it |
|---|---|
| Cash at the start | Your bank balance, then the previous week's end |
| Money in | Direct payments and deposits, and each booking site's payout on its pay date |
| Money out | Guides and staff, fuel, rent, loans and every other bill, on its due date |
| Cash at the end | Start + in − out: act now on any week that falls too low |
To get paid sooner and in full:
- Take full payment or a deposit on direct bookings.
- Ask groups and agents for a deposit and a date for the rest.
- Check each booking site's statement against its bookings every month.
Put part of each busy month's takings aside. Bills keep coming when bookings slow, and booking sites pay for your last busy weeks after the season ends.
Plan the low season
Sell to locals
Residents, schools, companies and events, with shorter or seasonal tours: see Hotels, agents and groups.
Bring past guests back
An offer for friends and family, e-mailed only to guests who booked direct: see Guest experience.
Run fewer departures
Fewer times, each with a minimum group, and idle gear rented out.
Get ready for next season
Use the quiet weeks for your before-the-season checklist.
In TourTask
Economy → Reports shows each month's profit and what one group departure earned: see Reports. Sales points record where each booking came from, and deposits bring money in when guests book.