I have been working in the group tour industry for almost twenty years. My first introduction to bus groups was when I worked at a family owned attraction – The Canandaigua Lady paddlewheel steamboat in the Finger Lakes. Buses full of seniors would drive up, empty out 45-55 individuals and everyone was happy after they enjoyed an afternoon on the lake.
Nowadays I work at an internationally known museum and we are just as likely to see a Sprinter Van as a full-size coach. What are some of the advantages, challenges, and changes since the average size of bus groups has fallen?
Pricing discount for groups
When I first started in the tourism industry, we offered discounts to groups of 30 or more. We would also offer free admission to the tour guide and driver. About 10 years ago it seemed like the more common standard was 20 people to qualify for a discount. Research show the average size of bus groups has fallen to 27 adults. My current rule of thumb is to offer our discount to anyone that is a professional tour operator. There are several reasons for this changing strategy.
Seasonality
Some groups will send us a series of tours throughout the year. That means they will try to sell seats on all these tours, but some dates will sell better than others. For example, the group tour season is just starting up in April and I am happy to have any bus show up in our parking lot. So while the tour operator might have said they would have 40 customers, those early tours might only show up with 15. It is important to honor the group rate to all the dates on the series.
New companies
The explosion of the Chinese visitor market has created many new tour companies. It is not unusual for seasoned tour guides to go out and start their own company. While they are trying to build their business, they might only show up with 8-10 people. I still give them the group rate. My long-term goal is to help them be successful and they remember these types of breaks.
Opportunities
VIP Groups
Some tour companies are actively pursuing smaller, more upscale groups. They are often less than 20 people, but an important opportunity. They tend to have more time to spend at an attraction and are more likely to spend more on retail and any other experiences. Can you create some customized experiences for small groups that wouldn’t be available to a full coach? Behind the scenes tours, special talks from area experts or maybe getting to interact with someone special on staff? One great example is at Radio City Music Hall. They have a VIP behind the scenes tour for small groups that takes you below the famous stage, through the costume department, and down hallways that the public never sees. The fact that you get to meet a Rockette and have your picture take her makes it an even more memorable experience!
Smaller spaces
There are some minimum requirements an attraction must meet in order to be ‘group friendly’. In this post, I discussed motorcoach parking and the ability to host 55 people at once. With the trend to smaller groups. a possible stop might only need to have room for 20 and parking for a van. So if you are a Destination marketer, your list of possible stops for tours has just expanded. Help them understand how to work with and welcome groups if they are new to the market. Something new and different might bring all kinds of new business!
Final Thoughts
The tourism industry is always changing- and shrinking group sizes is a trend that is common in the domestic group market. We can complain and watch number dwindle, or we can work with operators and develop new opportunities that will keep buses and vans heading our way for years to come.
Can I ask a favor? Can you forward this to at least one colleague who might find my posts helpful? I set a goal to get to 1000 readers by June 1 so I need your help! If you are a DMO, feel free to send this out to your partners and I will be happy to answer any questions they might have.
Is there a tourism industry topic you would like to know more about? Or a question about something in the industry that you don’t quite understand, but you don’t want to ask anyone in case it sounds foolish? Ask me! If you have a question, believe me, that others do as well. Email me at sally@sallydavisberry.com and I will feature the topic in an upcoming post. My passion is helping others be successful in the tourism industry!