How to Price Your Corporate Tours

But even MORE so when it comes to corporate tours. Unlike regular travel packages, corporate tours require a different approach, not only because they’re more complex but also because they provide a greater opportunity for profitability. Pricing corporate tours is a top challenge for many tour operators looking to get into the corporate niche. Here we’ll demystify some of the challenges so you can get started today.

The Basics of Cost and Profit Margins

First, let’s get the basic terminology out of the way. Every tour package has fixed and variable costs. Fixed costs are those that don’t change, no matter the number of participants. Think along the lines of your guide’s salary or venue rentals. Variable costs, on the other hand, fluctuate based on the number of participants—such as food and beverages. Understanding these costs is the first step toward setting the right price for your corporate tours.

But costs are not the only consideration to take into account when pricing your tours. Time is money, as they say. Often overlooked, the time that you or your team invest to secure a corporate client and coordinate the tour can eat into your profit margins. To easily navigate this, a simple tour pricing calculator, like the one we offer in our coaching program, can be invaluable. The goal is to know your costs and price your corporate tours with at least a 40% profit margin in mind. We show you how in the video.

The Added Value and Pricing Power

Corporate tours often deliver more than just entertainment; they offer value to a company that can translate into better team cohesion or closing a high-value contract. Therefore, these tours can—and should—command higher prices than your traditional consumer tour. Our Guest Focus Formula™ advises that you should “out-care” your competition. Taking the time to know the specific needs, wants, and frustrations of your corporate client can help you provide a unique, optimized offering that justifies a higher price point.

Don’t Underestimate Your Value

In the world of corporate tours, a higher price can actually be a strong selling point. If your packages offer more value, your potential clients will understand that they get what they pay for. Avoid the race-to-the-bottom price wars that devalue your offerings. Instead, aim to clearly articulate why your tour is priced the way it is and why it’s worth every penny.

Pricing Case Study 1: Coach Avital’s Corporate Offerings

One of our tour business coaches, Avital, has had remarkable success in corporate tour sales by sticking to our recommended 40%+ profit margin. Her business, Avital Tours, offers a multi-course, interactive meal experience in San Francisco’s Mission District. The pricing model is straightforward: $175 per person plus a $25 private event service and gratuity fee. This per-person pricing approach is generally well-received, as it simplifies budgeting for companies. It also allows flexibility in guest count, making it easier for final billing.

Pricing Case Study 2: Fixed Fee Model with Spark Experiences

One of our coaching members Heather – who owns and operates Spark Experiences – deviates from per-person pricing. Instead, she offers fixed-fee, VIP experiences, where the cost remains constant regardless of the number of people involved. This strategy makes sense for smaller private tours – especially when entering clients or VIPs.

Case Study 3: Tiered Pricing with Bulldog Tours

Coach John and Catherine from Bulldog Tours in Charleston, opt for a tiered pricing model for their corporate groups. They find this approach particularly effective because it more accurately reflects the opportunity cost of that comes with using their company resources (e.g. guides, vehicles, etc). Their corporate experiences only work with a guide for each dozen participants. So as soon as a corporate group requires an additional guide, they move into the next tier – regardless of the number of participants.

Case Study 4: Andy’s Corporate Menu at Austin Eats Tours

Andy of Austin Eats Tours recommends creating a corporate menu that includes simple upsells and cross-sells. These can range from adding a welcome drink to arranging for a live DJ. The key is to provide irresistible extras while maintaining a healthy 40% profit margin. You can often significantly increase the average order value of your corporate bookings by leveraging high-value add-ons and extras.

Additional Best Practices for Corporate Tour Pricing

1. Include Gratuities: We recommend including tips or gratuities in your pricing. Make this a separate line item on your invoice to avoid confusion and ensure that the client understands that this is part of the total cost.
2. Non-refundable Deposits: Protect yourself from last-minute cancellations by requiring a non-refundable deposit. This ensures you’re working only with serious buyers.
3. Advance Payment: Generally you can ask for payment well in advance—say, 30 to 60 days before the event. This is a standard practice and companies are generally used to these kinds of payment terms.
4. Flexibility: While it’s crucial to standardize your offerings, flexibility and tenacity is key to closing clients.If you can’t meet a specific demand, offer a compelling alternative that still meets the client’s needs. Feel free to be flexible with your pricing or terms if it will help land a new customer. Remember these clients have a much higher likelihood of returning year after year – so do your best to find a way to ‘yes’

Setting the right price for corporate tours is a complex but not impossible task. Knowing your costs, valuing your time, and understanding the extra value you provide will help you set a price that is both competitive and profitable. And remember, this isn’t a guessing game—relying on real-world data and examples can be your best ally in this journey. So, if you’ve been puzzled about how to set the right prices for your corporate tours, we hope this suggestions brings some much-needed clarity.