1. Creating Stable Revenue Generation via a Diverse Product Offering
Contents
- Introduction
- 1. Creating Stable Revenue Generation via a Diverse Product Offering
- 2. Creating a Stable Revenue Generation Model via diverse sales channels, customer segments and markets
- 3. The importance of knowing how to engage with diverse sales channels, customer segments and markets when creating a stable revenue generation model
- 4.Building Stable Revenue Generation in a Stepwise Manner
- 5. Who should assess if a tourism business revenue generation model is stable?
- 6. How does the tourism business assess that its revenue generation model is stable?
- Summary Notes and Conclusion
Contents
- Introduction
- 1. Creating Stable Revenue Generation via a Diverse Product Offering
- 2. Creating a Stable Revenue Generation Model via diverse sales channels, customer segments and markets
- 3. The importance of knowing how to engage with diverse sales channels, customer segments and markets when creating a stable revenue generation model
- 4.Building Stable Revenue Generation in a Stepwise Manner
- 5. Who should assess if a tourism business revenue generation model is stable?
- 6. How does the tourism business assess that its revenue generation model is stable?
- Summary Notes and Conclusion
1. Creating Stable Revenue Generation via a Diverse Product Offering
In the tourism industry, diverse business types including accommodation providers, visitor attractions, activity providers and festivals/events create diverse products to bring to market. These products are known as saleable experiences.
A saleable experience defines a product, experience, or service that has a robust, crystal clear offering with
- a clear retail price point
- clear price inclusions
- and clear parameters
The following table summarises diverse sample saleable experiences in the tourism industry:
![](/globalassets/learning-guides-documents/creating-a-stable-revenue-generation-model-for-your-business/table-1-.jpg)
Many tourism businesses begin by bringing to market a standard saleable experience offering and then expand into diverse offerings including premium offerings as highlighted:
![](/globalassets/learning-guides-documents/creating-a-stable-revenue-generation-model-for-your-business/table-2.-.jpg)
During Covid-19, many tourism businesses are proving to be innovative by also creating compelling virtual experiences that are generating new sources of income in a way that will remain permanent for the future.
The tourism business thereby has the potential to create a saleable experience catalogue across the following product development categories:
![](/globalassets/learning-guides-documents/creating-a-stable-revenue-generation-model-for-your-business/product-development-categories.jpg)
Through a diverse product range that includes standard, premium and, potentially, virtual product offerings, a tourism business can appeal to a wider range of customers with diverse
- interests
- needs
- budgets
In this way, the business can generate revenue via diverse customer profiles and segments to include revenue growth that is comprised of
- base revenue: “bread and butter” revenue generated via standard/general product offerings
- high-margin revenue: lucrative, or “cream” revenue generated via premium products
Once a tourism business defines the products that it wishes to sell, it can then make strategic choices to ensure it generates a sustained income via diverse sales channels, markets and customer segments according to the principles of stable revenue generation.