Gift vouchers are a win-win for operators and customers alike. They offer an additional revenue stream for businesses (with some exciting advantages over regular ticket sales that we’ll get into) and provide a flexible, thoughtful gift option. They’re also a great way to introduce upselling and cross-selling opportunities.
In this guide, we’ll explore how tour operators can maximize the use of gift vouchers, manage the redemption process effectively, and incorporate them into a successful marketing strategy.
The benefits of gift vouchers
Additional revenue stream
Gift vouchers provide a quick cash flow boost without the immediate obligation to deliver a tour. This can make an important difference during the off-season or other slow times. For example, a summer walking tour could use gift vouchers to boost sales during the otherwise slow winter holiday season.
Surprisingly, about 40% of gift vouchers never get redeemed, making them even more profitable. For tour operators, this means getting paid for tours you don’t have to run and getting paid for bookings that can remain open for additional customers. Vouchers redeemable at an unspecified future date don’t impact your booking inventory until they’re redeemed.
Now, obviously, if your redemption rates are really low, you might want to look into why that is, because it could reflect other issues with your branding or the perceived value of either the voucher or the tour itself.
Flexibility
Vouchers’ flexibility allows you to incorporate them into your booking management and dynamic pricing strategy. You can avoid overbooking during peak seasons and encourage voucher redemption during quieter periods, ensuring a balanced distribution of customers throughout the year.
This can be as simple as limiting the dates and times vouchers can be redeemed, keeping times of peak demand open for higher-paying bookings.
Perception and psychological of gift-giving
The psychology of gift vouchers is interesting. For reasons that are complex and beyond the scope of this article, voucher recipients tend to perceive their value differently than their cash value. On the one hand, vouchers are generally seen as thoughtful gifts that, in the case of special interest tours, reflect the recipient’s personal taste better than a gift card or something more generic.
The flipside of flexibility is that the option to redeem a voucher whenever can mean it never gets redeemed.
How to get the most out of your vouchers
Upselling opportunities
One of the most effective ways to increase the value of your gift vouchers is by incorporating upselling opportunities. Offer vouchers that cover mid-tier or premium experiences, making them more attractive and valuable.
For example, if you run a beer tour, consider offering a voucher that includes an additional drink or a premium package. This not only enhances the perceived value of the voucher but also provides a better experience for the recipient, making it more likely that they’ll return to your services in the future.
Universal flyer template for advertising winter sport
Personalization
Personalizing your vouchers can significantly increase their appeal. Tailor the voucher to the occasion, whether it’s a birthday, Christmas, or any other special event.
Offering something extra upon redemption—such as a complimentary drink, a free photo, or a small souvenir—can make the experience more memorable for the recipient. Personalization also helps your vouchers stand out in a crowded market, making them a more attractive option for consumers.
Managing the redemption process
Terms and conditions
It’s important to set clear terms and conditions for voucher redemption to avoid potential issues during peak times.
For instance, you might want to restrict voucher redemptions on high-demand days like school holidays. By doing so, you ensure that your premium offerings remain available for full-paying customers while still providing value to those redeeming vouchers during less busy periods.
Staying on top of your accounting
To avoid potential financial downsides and admin headaches, be sure to take the time to work out how voucher redemption alights with the rest of your revenue. The most common snag here is reconciling vouchers redeemed after the month or even the financial year when they were sold.
Incorporating gift vouchers into your marketing strategy
Nurturing and engagement
Maintaining engagement with customers who purchase or receive gift vouchers is key to getting the most value from those sales.
Follow-up emails with upsell opportunities leading up to the experience can increase the total spend.
For example, after a voucher purchase, you might send emails offering additional services or upgrades, such as a DVD of the experience or an extended tour package. These touchpoints not only increase revenue but also enhance the overall customer experience and get them excited for their tour.
Timely and targeted marketing
Strategic marketing is essential to promote your gift vouchers effectively. Running campaigns around key dates like Christmas, Black Friday, or local events can boost sales significantly.
Platforms like Facebook offer sophisticated targeting options that allow you to reach specific demographics, such as locals or people with upcoming birthdays. This targeted approach ensures that your marketing efforts are reaching the right audience, increasing the likelihood of voucher purchases.
Case study: Knockhill Racing
A great example of successful gift voucher marketing and upselling is Knockhill Racing in Scotland. Their strategy involves a series of targeted emails that engage customers from the moment a voucher is purchased.
After a customer buys a racing experience voucher, they receive a series of emails offering upsells such as video recordings of the experience, additional racing time, or even a celebratory drink after the race.
Knockhill’s approach is particularly effective because it turns a simple voucher purchase into a more substantial revenue opportunity.
They’ve mastered the art of smart segmentation, ensuring that customers receive relevant offers that enhance their experience. This continuous engagement not only boosts their bottom line but also strengthens customer loyalty, making Knockhill Racing top of mind for future gift purchases.