7 Ways to Increase Your Revenue Per Transaction

Michael Folling|December 8, 2015

One of the biggest challenges for any businesses is to acquire new customers, which is why most business owners often spend the majority of their time focusing on new customer acquisition.

Since finding and marketing to new customers can be time consuming and expensive, focusing your efforts on earning more revenue per transaction can be a huge shot in the arm for your tour and activity business.

In this week’s blog post I’ll share with you 7 pricing strategies you can use to increase your revenue per transaction. Each of these strategies is easy to implement and, most importantly, when applied will result in more revenue for your tour and activity business.

Let’s get started!


Up-selling is the most common technique used in retail sales. Essentially, it is convincing your customer to buy an additional product that complements the product they already planned on purchasing.

For example, a customer books a tour that doesn’t include a meal. Upselling is when you ask the client, “would you like to include a meal with your tour?

By offering your customer a meal they get a better experience, and you easily increase your revenue per transaction.

According to Marketing HQ, the key to doing this is to “provide an offer that is complementary to the original sale and increases the perceived value of the product to the customer.”

Increase Your Retail Price

While raising your retail price might seem like an obvious way to increase your revenue per transaction, it’s still important to mention.

Retailers often assume that just because their competitors are all charging the same price for a similar product or service it doesn’t mean that consumers aren’t willing to pay more.

Let’s take a look at how one retailer found success just by raising their prices.

In Robert Cialdini’s book, Influence: Science and Practice, he gives an example of jewelry retailer in Arizona who was having trouble selling her inventory of turquoise jewelry.

One day an employee mistakenly doubled the price of the turquoise jewelry which, to their delight, caused all of their inventory to sell out!

So why was raising the price so effective? Simply because we’ve been socialized to believe that the more expensive an item is the higher its quality is as well. This psychological trigger is known as a judgemental heuristic.

Knowing this, why not use it to your advantage? Look at the tours and activities you sell and test to see whether your target market will accept a price increase without any increase in demand.

Bundle Offers

Bundling multiple tours, activities, or complementary products is a great way to encourage your customers to spend more and ultimately increase your revenue per transaction.

Online travel agencies such as Expedia are famous for bundling offers. You’ll often see them bundling airfare, hotel rooms, and even tours and activities into a single package to maximize the amount their customers spend with each booking.

Here’s an example of Expedia bundling hotel and airfare together into one package, nearly doubling the price of this transaction:

To do the same, create a bundled package that’s irresistible to your customers.

Not only will your customers feel like they’re getting the most value for their money but you’ll also give them a better experience because they won’t have to spend the time to put together a package on their own.

Add Deluxe Options

Offering your customers a deluxe version of each of your tours is a great way to boost your average revenue per transaction.

Typically, tour and activity suppliers offer a la carte upsells for their customers to purchase during the checkout process. While this is great for getting incremental revenue with each booking you might still be leaving money on the table.

For example, if one of your tours has multiple upsells why not create a deluxe version of that tour that includes all of those upsells built into the retail price?

Your customers will have a great experience knowing that they booked the best tour available and you’ll likely find that the deluxe option will consistently have a higher ticket price when compared to your standard tours which allow your customers to opt out of upsells.

Increase Product Awareness

Sometimes increasing your revenue per transaction is as easy as letting your customers know about the other products you sell.

If a customer is browsing your website make it easy for them to navigate to your product pages to find the tours and activities you offer.

If you’re curious how much of a difference it would make on your sales and revenue per transaction take a look at this case study on Bizztravel Wintersport. They were able to increase sales by 21% thanks to a small adjustment to their website which made it easier for visitors to find the ski tours they had available for sale.

As a best practice, all of the products you sell should never be more than a click away. To determine how easy it is to find and book tours on your website consider having usability testing done from a service like UserTesting.

With UserTesting you’ll get a recording of their testers’ interactions with your website and they’ll also provide feedback about their experience so you can get an expert opinion from a fresh set of eyes.

Remove Friction

Friction during the sales process can also contribute to lower transaction revenue. So what exactly is friction and how do you remove it?

Friction is anything that makes it hard for your customers to achieve their desired result when making a purchase.

For example, do you offer multiple tours and activities for sale? If so, make it easy for your customers to purchase multiple tours in the same transaction.

If the booking software on your website only lets your customers book one tour or activity at a time your customers will get frustrated and leave. Reduce friction during the sales process by making it simple for them to add multiple products to their shopping cart and build complex itineraries.

By allowing your customers to book multiple tours on one transaction you should immediately see an increase in your average revenue per transaction.

Price Anchoring

Do you have tours that you offer at multiple price points? If so, I’m willing to bet that you don’t sell as much of your most expensive tour as you do of the next most expensive one.

This is due to a concept called “Price Anchoring.” Essentially your customers are using the price of your most expensive tour to help them determine the value of your other tours.

By doing so your customers perceive your less expensive tour to be a bargain compared to the most expensive tour.

To put this into perspective let’s look at an example from retailer, Williams-Sonoma.

Williams-Sonoma offered their customers a breadmaker for $275 but unfortunately sales were dismal. Rather than lowering the price they came out with a bigger, more expensive model for $429.

The simple addition of a more expensive breadmaker caused sales of the $275 model to skyrocket! Doing so helped their customers “anchor” the price of the $275 model to the $429 model in their minds to see the value in the lower priced bread maker.

Curious how you can use price anchoring to increase your average transaction price?

Offer a tour or activity that is even more expensive and something your customers might aspire to purchase. This will help them anchor the value of your current most expensive tour in their mind to help them understand its value.


Increasing your revenue per transaction can be one of the biggest drivers towards helping you achieve your business goals. Fortunately, any of the 7 ways I’ve detailed here will help you get there and you won’t have to spend a single penny more on marketing.

Would any of these pricing strategies work for your tour and activity business? If so, I would love to hear about your results.

Oh, and don’t forget to download the PDF version of this blog post to share with your friends!

Michael is part of the marketing team at ActivityRez. He enjoys coming up with creative ways to help travel companies grow their business.

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