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Day Tours

Types of Tour Operators: How to Choose the Right One for You

...

Sometimes, planning and running tours is more exhausting than taking one. Booking accommodation and transport, building custom travel itineraries, coordinating activities, and dealing with last-minute cancellations, to name a few, is enough to make your head spin.

Knowing the different types of tour operators can help you define your role in this fast-paced industry, especially if you’re just launching your tour business or thinking about expanding into new markets. This allows you to refine your strategy, streamline operations, attract the right customers, and eventually, grow more efficiently.

Let’s walk you through the most common types of tour operators, what each one does, and how you can choose the right model for your business.

1. Inbound Tour Operators

Inbound tour operators welcome international tourists into their home country. If you operate in the US, you organize travel itineraries to different states, such as New York, California, Florida, and more, tailored to foreign guests. 

As an inbound tour operator, you’ll often coordinate with local providers to arrange guided excursions and schedule sightseeing activities that showcase the best of a local destination.

2. Outbound Tour Operators

Outbound tour operators organize travel for local residents heading to international destinations. You market tourism destinations globally and package these travel services, including flights, hotel bookings, tours, and meals, to provide comprehensive travel experiences.

This model requires solid partnerships abroad, often involving collaboration with inbound counterparts to manage on-the-ground logistics, making it high-margin but also high-risk.

3. Online Tour Operators (OTA)

Some types of tour operators don’t run tours. Online Tour Operators (OTAs), such as Viator and GetYourGuide, are third-party platforms that help sell and market tourism destinations on behalf of local operators.

If you want to grow visibility without spending big on ads, listing your products on OTAs can help. But beware of steep commissions and limited customer access.

4. Group Tour Operators

As a group-oriented tour operator, your strength lies in scale. Think educational trips, corporate retreats, or multi-family vacations. This model is about delivering value through volume.

You’ll likely offer package-based services for 10+ people and create standardized itineraries to reduce operational overhead. Managing large group tours also allows you to easily negotiate with suppliers for the best rates.

5. Specialized Tour Operators

If your tours are customizable, educational, or experience-driven, you fall in this category. Specialized tour operators are the niche players in the industry.

Examples include:

  • Culinary tours in New Orleans
  • Surf camps in Santa Cruz, California
  • Spiritual wellness retreats in Sedona, Arizona
  • Art history-focused cultural experiences in Santa Fe, New Mexico

Specialized tours often require deep expertise and exceptional tour guide skills. Travelers in this segment usually pay a premium for authentic, immersive experiences.

6. Domestic Tour Operators

A domestic tour operator, not to be confused with inbound tour operators, operates entirely within its own borders, curating experiential travel options for fellow locals.

You sell holiday packages explicitly tailored to residents and focus on showcasing the best your home country has to offer. Think national parks, historic towns, cultural festivals, and hidden gems off the beaten path.

7. Eco-Tourism and Sustainable Tour Operators

Eco-tourism and sustainable tour companies are built around environmental conservation, community support, and minimizing the negative impact of tourism on local ecosystems. These tours are typically experience-driven, low-impact, and deeply immersive.

You might operate adventure travel trips through protected wildlife areas in Alaska, lead educational kayaking tours through Florida’s mangroves, or run cultural hiking excursions in the Blue Ridge Mountains that focus on indigenous history and nature preservation.

Advantages and Disadvantages of Using Tour Operators

For 2025, total US travel spending is projected to grow 3.9% to $1.35 trillion and $1.46 trillion by 2028, with domestic leisure travel alone forecasted to surpass $1 trillion. That simply means there’s a tremendous opportunity in this industry for tour businesses ready to scale. 

Benefits for Travelers

Working with a tour operator offers travelers advantages that make their journeys smoother, more enjoyable, and often more affordable.

  • Convenience factor: Operators handle itineraries, transportation, accommodation, and activities, saving travelers valuable time.
  • Access to expertise: Experienced guides and insider knowledge deliver curated experiences that travelers may not easily find on their own.
  • Cost savings: Bulk bookings and supplier agreements allow operators to pass along discounts and offer competitive packages.

In short, travelers gain simplicity, insider access, and financial value: three factors that keep them coming back for more.

Potential Drawbacks

But of course, running a tour operator business isn’t without challenges, and understanding the risks can help you prepare smarter strategies.

  • Operational limits: Rigid itineraries can reduce your ability to adapt quickly to customer requests.
  • Pricing pressure: Some packages require markups that risk making your tours appear overpriced compared to competitors.
  • Group management challenges: Running group-oriented tours can strain staff, logistics, and customer satisfaction if not carefully managed.

Read here to learn more about how to create a popular and profitable tour.

Key Factors to Consider When Choosing a Tour Operator

When deciding what type of operator you want to be, or pivot into, ask yourself:

  • What’s your region or destination specialty?
  • Do you want to work with locals or global travelers?
  • Are you experience-first, budget-friendly, or luxury-focused?
  • Do you want to offer individual-focused travel or group-oriented tours?

Your choice will shape not only the tour packages you design but also the market you serve, the suppliers you partner with, and the long-term growth of your tour operator business. So, choose intentionally and build around what makes your brand stand out.

Key Takeaways

  • Understanding the different types of tour operators can help you position your business and find the right growth model.
  • Each tour operator model has unique strengths, challenges, and customer expectations.
  • Success comes from aligning your model with your market and delivering experiences that set your tours apart.

Frequently Asked Questions

Can Luxury Tour Operators Arrange Private Tours?

Yes. Many luxury operators provide individual-focused tours with VIP accommodation, private transport, and access to exclusive attractions, depending on the traveler’s needs.

Do Local Tour Operators Offer Discounts for Group Bookings?

Yes. Many domestic operators offer discounted group packages, especially for families, schools, or corporate retreats, to encourage bulk bookings.

Is It Safe to Book with Online Tour Operators?

Yes, it’s safe to book with online tour operators, as long as you book with reputable operators. Read reviews and check for certifications before booking.

Strategy

7 Holiday Travel Trends Impacting Tour and Activity Operators

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The travel industry never stands still, especially when it comes to holiday travel. What worked last year may feel outdated today. In fact, the holiday trends now could entirely reshape how we think about vacation planning.

Today, travelers are curating experiences that align with their values, lifestyles, and social media feeds. They want personalized packages, sustainable options, and destinations that offer something more than the usual tourist trail.

For tour operators and activity providers, this gives us a chance to innovate and connect with a new generation of travelers who know exactly what they want. 

In this guide, we’ll break down the top trends shaping 2025's holiday season, so you can adapt business strategies and align with evolving seasonal preferences.

Top Holiday Travel Trends for 2025

Let’s take a look at how people travel during the holidays now and what they mean for your business.

1. Sustainable and Eco-friendly Travel

Modern travelers now seek eco-conscious accommodations and support destinations with strong environmental credentials, especially during the holiday season when families want to model responsible travel habits. Showcase your commitment to the planet by partnering with eco-certified resorts and promoting low-impact activities. 

2. Digital Nomadism and Workcations

The rise of remote work has blurred the lines between office and vacation, with digital nomads combining productivity with leisure by choosing destinations that offer reliable Wi-Fi alongside relaxation. Develop packages tailored for remote workers, including comfortable workspaces, high-speed internet, and curated afternoon experiences.

Read more: Millennial travel trends

3. Influence of Social Media and Travel Inspiration

If it's not on Instagram or TikTok, did it even happen? Social media platforms have become the primary source of travel inspiration, especially for Gen-Z travelers. Users now seek destinations and experiences that are visually stunning and shareable. Enhance your online presence with high-quality visuals and user-generated content to attract social media-savvy travelers.

4. Experience Over Material Gifts

Today's consumers want memories. They want experiential gifts, not material ones. Promote limited-time deals and seasonal bundles by offering free experience vouchers, such as guided cultural tours, adventure tickets, or sit-down art workshops.

Explore how you can incorporate creative tourism for your travel business.

5. Technology Innovations in Travel

AI, virtual reality previews, and real-time translation tools have changed the way we plan, book, and experience travel. These predictive technologies help travelers design personalized itineraries that take into account their preferences, budget constraints, and time limitations. Create personalized services that feel tailor-made for each guest. The more seamlessly you incorporate technology, the better you can deliver insightful experiences.

6. Air Travel Trends

Families want convenient, affordable options that don't sacrifice quality or break the budget on airfare. Focus on promoting regional tours and activities accessible via short flights or ground transportation. At the same time, you compare year-over-year data to identify new consumer habits around airline preferences and booking patterns.

7. Travel to Unusual Destinations

France, Italy, Greece? No. How about Mongolia? The beaten path is officially overrated, with travelers seeking unique, off-the-radar destinations that offer authentic cultural experiences away from overcrowded tourist hubs. Curate and promote itineraries to lesser-known places that most people haven't considered, like Ohio, Virginia, Texas, or Michigan in the United States. Highlight cultural and regional variations to appeal to travelers seeking authentic, immersive experiences.

How to Attract More Customers as a Tour and Activity Operator 

Smart tour and activity operators have the potential to boost their bookings by paying attention to travel trends.Here are seven things you can do to attract more customers this holiday season

Add Mobile Booking

More customers are booking experiences via mobile devices. In fact, travel purchases made with smartphones or tablets are expected to increase by 40 percent this year, accounting for $36.77 billion in sales, according to eMarketer. Make sure your business offers online mobile-friendly booking, such as through Peek Pro.

Promote Hyper-Localized Experiences

Travelers are going off the beaten path, moving away from over-commercialized tourist offerings, and delving into the local flavor of the places they visit. In addition, staycations remain a popular choice for residents who have a renewed appreciation of home. Cater to both groups by creating hyper-localized tours and activities that allow your customers to experience your area the way long-time locals do. Identify your area's best-kept secrets, such as a scenic trail or tiny diner, and build a tour or activity around it.

Give Activities Instead of Gifts

Spending quality time with friends and family is in style, and materialism is out. Take advantage of this trend by offering gift cards or group excursions that can be wrapped and exchanged this holiday season.

Arrange Cooking Trips

The most sought-after travel souvenir is no longer a T-shirt or snow globe; it's a recipe brought home from a cooking trip. Food-related travel is becoming more popular, with hands-on lessons from local chefs. Get in on this trend by pairing your tour, rental, or activity with a cooking lesson from a local food artisan. For example, if your business offers bike rentals, partner with a local restaurant that will offer a cooking class with its chef. It's a win-win for both businesses.

Embrace Silence Tourism

With technology creeping more and more into our daily lives, unplugging and experiencing nothing is a trend that redefines the word “getaway." Grow your business by offering customers a way to escape. Add nature hikes, yoga retreats and group meditation to your tours and activities. Collect cell phones, or gather in an area where there is no reception or WiFi. Then soak up the surroundings in silence.

Expand to "Forbidden" Places

More Americans are traveling to locations that were previously considered dangerous due to international politics. For example, since diplomatic relations were restored with Myanmar in 2012, visits by Americans are expected to increase 71 percent by 2016. Consider getting in on this trend by organizing tours to locations that were once off limits. Be sure to check with the U.S. Department of State for travel advisories and warnings.

Glamp It Up

Glamorous camping, called glamping, is where “roughing it" meets a five-star hotel. This trend allows travelers to experience nature without giving up comfort by offering luxurious tents, yurts, and even tree houses as overnight accommodations. If you have a rental or tour business, adopt this trend by partnering with an existing glamping provider to create a complete experience.

How to Save on Holiday Travel: Tips and Strategies

The main travel costs (flights, accommodation, meals, and activities) can add up quickly during the holiday season. But with smart planning, your business can be more profitable and competitive despite the high costs of the holiday season.

  • Plan early: Track travel and booking data to forecast tourism spikes during holidays and plan accordingly.
  • Track airline releases: Airlines release their best prices months in advance, so book before prices surge.
  • Consider land transportation: Include bus and train transportation modes in your customer’s itinerary to save on flight expenses, if possible.
  • Bundle for value: Look for packages that bundle flights, accommodation, and activities to save extra dollars.
  • Respond to last-minute shopping or travel demands: Offer flexible booking options and spontaneous deals to accommodate last-minute travelers.
  • Track and measure performance: Measure campaign performance using metrics like CTR and ROI and adjust strategies for the best holiday sales results.
  • Create campaigns with analytics in mind: Leverage holiday data to create targeted marketing campaigns to reach and attract more customers.
  • Implement dynamic pricing: Make your prices a bit higher during the holiday season, so you can cover for the increased demand and higher operational costs.

Boosting profit during the holiday season is entirely possible with the right strategies. When you stay proactive, leverage data, and adapt to shifting trends, you can maximize your sales. 

Just make sure to analyze seasonal shopping patterns before the holiday season to predict consumer demand. Plan early to ensure you have enough inventory, staffing, and logistics because customer satisfaction is more important than ever.

Start planning today to see significant returns this season!

Key Takeaways

  • Holiday travel trends in 2025 focus on sustainability and unique experiences rather than traditional tourist attractions.
  • Social media and digital nomadism shape where and how people travel.
  • Adapt your offerings to meet the time-sensitive demands of modern travelers who prioritize authenticity and convenience.

Frequently Asked Questions

Are workcations a growing trend for holiday travelers?

Yes. Workcations have seen significant growth as more people seek to combine work and leisure during the holiday season. Flexible work-from-home arrangements and the desire to travel to new destinations have made workcations particularly appealing.

Will family-friendly holiday travel become more popular?

Yes. There is a demand for destinations with kid-friendly activities, resort packages, and family-oriented excursions during the holiday period, particularly around Christmas and school breaks.

Are there emerging destinations for holiday travel in 2025?

Yes. 2025 will see rising interest in off-the-beaten-path destinations, including eco-tourism spots, less crowded cities, and adventure travel locations. Travelers are seeking unique experiences in remote areas, national parks, and cultural hotspots with fewer crowds during the peak holiday season.

Strategy

How to Increase Tour Sales with Guarantees and Attract More Customers

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It’s tough out there. Tour and activity operators are facing rising advertising costs, short attention spans, and intense competition. Offering a great experience isn’t enough anymore. Travelers need confidence before they commit. That’s why more operators are learning how to increase tour sales with guarantees that reduce hesitation, build trust, and turn interest into action.

In this guide, you’ll learn why guarantees work, which ones are best for tour businesses, how to use them effectively, and what mistakes to avoid. Let’s get started.

Types of Guarantees That Reinforce Consumer Assurance

Not all guarantees are created equal. Some make people feel safe. Others make them feel skeptical. The difference lies in clarity, confidence, and relevance.

Here are five guarantee types that actually work in the tour and experience industry:

Satisfaction Guarantee

This one’s all about the guest experience. If your customer isn’t happy, you’ll make it right—whether that’s a refund, credit, or alternate activity. A well-defined satisfaction guarantee demonstrates service confidence and boosts repeat bookings by showing you care about the outcome, not just the sale.

Money-Back Guarantee

This is your safety net for the hesitant buyer. If the tour isn’t what they expected or plans change, they receive a refund. No drama. A strong money-back guarantee offers risk-free booking and attracts hesitant buyers by eliminating the fear of financial loss.

Best Price Guarantee

Let customers know they won’t find a better deal anywhere else. This kind of promise is perfect if you want to position yourself as competitive and fair. It builds credibility and enhances perceived value by removing pricing doubts.

Weather Protection Guarantee

Weather happens. And for many outdoor tours, it can tank sales. This guarantee offers rain checks, flexible cancellations, or rescheduling if conditions make the tour unsafe or unpleasant. It’s a great way to provide peace of mind to travelers and supports travel planning flexibility.

Experience Quality Assurance

Think of this as your promise of excellence. You guarantee that guides will be knowledgeable, the itinerary will be accurate, and the experience will run smoothly. You can back it up with reviews, testimonials, or even certifications. It highlights service reliability and builds brand reputation over time.

Ways to Increase Your Tour Sales with Guarantees

Having a guarantee on your website isn't enough. It has to be designed well, aligned with your operations, and promoted across your marketing channels.

Design Effective Tour Guarantees

Clarity is everything. Your guarantees should use plain language and be easy to understand. Avoid fine print, vague terms, or unrealistic promises. Be specific: "Full refund if canceled 48 hours in advance" is more effective than "Flexible refund policy."

Ensure your guarantees align with customer expectations and the actual pain points they encounter.

Integrate Guarantees into Business Strategies

Guarantees aren’t just customer perks. They can strengthen your brand identity and justify premium pricing.

Want to position your business as trustworthy and guest-first? Use guarantees to prove it. Want to be known for flexibility? Offer one that includes flexible rescheduling. Smart operators also use guarantees to support campaigns that drive urgency or exclusivity, as outlined in this guide to scarcity and urgency.

Implement and Promote Guarantees

Where you place your guarantees matters. They should appear on your homepage, booking flow, confirmation emails, and in your sales scripts.

Icons, bold text, and visual cues help reinforce the message. Better yet? Let happy customers speak for you. Testimonials mentioning easy refunds or great service help reassure clients about refund policies, especially when paired with proven travel agent sales strategies that build trust throughout the customer journey.

Streamline the Claims Process

If someone needs to use your guarantee, make it as friction-free as possible. Train your staff. Use automation where possible. Treat these guests as future promoters, not problems.

By making it easy to claim, you not only improve customer satisfaction but also signal that your offer is genuine and hassle-free.

Measure the Impact of Guarantees

Track everything. Look at:

  • Conversion rate changes before and after implementing guarantees
  • Refund request frequency
  • Customer satisfaction scores
  • Repeat booking rate

Use these insights to refine your strategy and boost what works. (Looking for more advanced optimization? PeekPro integrates with analytics tools and CRM platforms to make this easy.)

Understand the Tour Customer's Perspective

Put yourself in your customer’s shoes. Booking a tour involves risk, especially for first-time travelers or those seeking big-ticket experiences.

They’re thinking:

  • What if it rains?
  • What if the guide is boring?
  • What if I find a better price later?
  • What if I have to cancel?

Every one of those concerns can be countered by the right guarantee.

Your job is to reduce perceived risk and make buyers feel safe clicking "book now."

A great guarantee motivates travelers to commit because it shifts responsibility off them. They know they’re covered.

Want to boost your group bookings too? Be sure to explore these group pricing strategies that complement your guarantees effectively.

Common Mistakes to Avoid when Marketing Guarantees

A well-crafted guarantee can boost conversions, but a poorly executed one can backfire fast. If travelers feel misled, unclear, or let down, it damages credibility and drives future bookings away. To protect both your reputation and profitability, avoid these common pitfalls:

Offering Vague or Overcomplicated Guarantees

Keep it simple. Customers don’t want to read legal documents. They want confidence. Avoid long paragraphs and fine print that make them feel like there’s a catch.

Failing to Deliver on Promised Experiences

If you promise a 5-star experience, you better deliver. Operational excellence must match your marketing. Miss the mark and you’ll lose trust—and revenue.

Ignoring Negative Feedback Related to Guarantee Claims

Every complaint is a gift. Use feedback from guarantee claims to improve your service or retrain staff. Often, issues reveal where expectations and delivery don’t align.

Key Takeaways

  • Summarize the main points in 3 concise bullet points.
  • Guarantees help build customer trust, reduce booking hesitation, and increase conversion rates
  • The most effective guarantees are specific, guest-focused, and promoted throughout the sales journey
  • Avoid vague language and underdelivering on your promises—it can damage your reputation

Frequently Asked Questions

Are There Risks in Offering Guarantees for Tours?

Yes, there are potential risks, like abuse of refund policies or higher refund rates. But you can minimize this by setting clear eligibility rules (e.g., 24-48 hour windows), limiting to first-time bookings, or offering credit instead of cash refunds.

What Metrics Should I Track to Measure the Effectiveness of My Guarantees?

Track your booking conversion rate before and after the guarantee to measure impact. Monitor the refund or claim rate to ensure it’s not cutting into profits. Use Net Promoter Score (NPS) to gauge satisfaction, and watch your repeat bookings and referrals to assess long-term trust.

Should I Offer a “Rain Check” or Rescheduling Guarantee for Weather-Dependent Tours?

Yes. It’s one of the best ways to protect customers from cancellations and encourage advance bookings. Offering a no-hassle reschedule option lets customers book earlier without worrying about bad weather ruining their plans.

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