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
Summary Notes and Conclusion
Stable revenue generation is based on the principle of bringing diverse products to market for a customer to purchase via diverse sales channels, markets (domestic and global) and customer segments.
- A tourism business should regularly assess its revenue generation model to ensure it is stable.
- Businesses that are over-reliant on one, or a limited number of sales channels, markets, and/or customer segments are at high risk as external pressures may cause the limited source of revenue generation to fail.
- Many tourism businesses apply a 30%-30%-30% rule to this tiered revenue generation model, allowing approximately
- 30% of revenue from tier 1, base business
- 30% of revenue from tier 2, adhoc group business
- 30% of revenue from tier 3, individual business
- In the same way that island of Ireland customers can make holiday plans during school breaks throughout the year, global customers also travel at different times based on the annual calendars and celebrations that apply to their destinations.
- Once a tourism business understands these kind of travel behaviours, it can blend diverse markets to create year-round revenue generation opportunities.
- To build a successful stable revenue generation model, the tourism business must firstly commit to learning and catering for the diverse rules of engagement required for diverse sales channels, markets and customer segments so it can maximise revenue generation opportunities.
- A stable revenue generation model must be built in a stepwise manner, based on a tourism business
- Maximising opportunities via a clear understanding of how to engage with existing sales channels, markets and customer segments
- Creating opportunities by learning how to effectively engage with new sales channels, markets and customer segments
- A tourism business should assess the stability of its revenue generation model from a commercial and financial perspective.
- Accurate tracking is essential to objectively assess that a revenue generation model is stable enabling the tourism business to measure exact contribution made by each sales channel, each market and each customer segment to its total revenue