Fix the 7 Weaknesses of Traditional Tour Marketplace & Operator Models

Tours as relevant, integrated parts of the travel experience are becoming an essential part of the travel value proposition for many travel companies.

It’s because tourists expect more from companies, something many travel companies can’t deliver. There’s opportunity then for innovative, audacious entrepreneurs, to use personalized, unique tours as the overarching theme of traveler’s trips and act as the glue that makes them a complete, enjoyable experience. If tour companies flip the traditional business and revenue model employed by the big OTAs to one of customized trips that feature the benefits of the tours (rather than prices, dates, hotel rooms, swimming pools, and flight seat selection), then all sorts of doors open up to really capture an loyal customer base.

And for marketing, tours can produce more exciting, fresh and persuasive content to aid trip planning and booking tools as well as generate more credibility and authenticity which builds traveler’s confidence that they’re making the right choice.

So it’s a race involving many travel businesses from OTA’s to DMO’s to local tour guides as to who gets to leverage this peak part of the travel adventure. And there’s the issue of owning and keeping your audience (and your tour guides). Given the business prowess of the big OTA’s and tour marketplaces, tour business models have be sustainable – to survive those company’s monopolization strategy.

I’m not going to suggest I’m an expert on the digital tour business in all its dimensions and connections to the greater travel industry. However, I do like developing actionable strategies to make small companies win.  Sometimes unlocking one door, opens up others.

2 Big Challenges to Resolve

There are two challenges that tour companies need help with:

1. Insufficient reach in marketing to attract tourists and tour guides
2. Outdated business and revenue models that limit growth and erode earnings

The traditional business model for tour marketplaces (e.g., Viator, TourRadar, GetYourGuide) and tour operators (e.g., G Adventures, Contiki) has struggled with inefficiencies that limit growth, profitability, and customer satisfaction. For tour company owners and travel startup entrepreneurs, choosing the right business model and then being audacious with digital marketing might make all the difference to success. Because it’s taking command of what you offer and how you offer it to the audience you’re targeting.

For travel agencies too, a thriving diversity of smaller online tour marketplaces and operators helps them enrich their trip products.

The 7 Top Weaknesses of Traditional Tour Businesses

Let’s explore the 7 weaknesses of their traditional business and revenue model—and how modern digital strategies can turn weaknesses into strengths.  And then I pose a potential business model you might explore, to learn from.

1. Heavy Reliance on Third-Party Platforms (OTAs)

Weakness:

• Many operators depend entirely on OTAs (Online Travel Agencies) like Expedia, Viator, and TripAdvisor for bookings.
• High commissions (15-30%) eat into profits, making it hard to scale.
• No control over branding or customer data—OTAs own the relationship and learning is difficult.

New Strength:

✔ Build a Direct Booking Engine – Develop an SEO-optimized website with seamless booking.
✔ Leverage Email & Retargeting – Capture leads and retarget visitors who don’t book immediately.
✔ Hybrid Distribution – Use OTAs for discovery but incentivize direct bookings (e.g., discounts for booking on your site).

2. Limited Direct Booking Channels

Weakness:

• Many operators still rely on phone bookings, travel agents, or walk-ins, missing digital-first travelers.
• No strong website presence means losing customers to competitors with better online experiences.

New Strength:

✔ Invest in UX & Mobile Optimization – Ensure fast, easy booking on any device.
✔ Live Chat & Instant Booking – Reduce friction with chatbots and real-time availability.
✔ Loyalty Programs & Memberships – Encourage repeat bookings with exclusive perks.

3. Weak Digital Presence & Content Strategy

Weakness:

• Many operators don’t blog, produce videos, or optimize for SEO, missing out on free organic traffic. Reaching both tourists and tour guides helps you strengthen your product offering (more and better tour guides and creating value for tour guides) and have your content doing double duty.
• Generic tour descriptions fail to inspire or rank in search results.

New Strength:

✔ SEO-Optimized Destination Guides – Target long-tail keywords like “Best Food Tours in Lisbon.”
✔ Video & User-Generated Content – Show real traveler experiences (TikTok, Instagram Reels).
✔ Local Expert Collaborations – Partner with influencers/bloggers for authentic storytelling.

4. Difficulty Attracting & Retaining Quality Guides

Weakness:

• Independent guides avoid high-commission platforms and prefer direct bookings.
• Many marketplaces don’t provide enough value (training, marketing support) to keep guides loyal.

New Approach:

✔ Lower Fees for High-Performing Guides – Reward top sellers with better commission rates.
✔ Guide Resource Hub – Offer free training, SEO tips, and marketing templates.
✔ Showcase Guide Success Stories – Attract new guides with case studies (e.g., “How Maria Doubled Her Bookings”).

5. High Customer Acquisition Costs (CAC)

Weakness:

• Competing on OTAs means bidding for top placement, driving up ad spend.
• No repeat customer strategy leads to constant (expensive) new customer acquisition.

New Strength:

✔ Focus on Organic Growth (SEO, Content Strategy & Social Media) – Rank for niche keywords to reduce paid ad reliance and stay fresh in tourists minds.
✔ Retargeting & Email Nurturing – Bring back visitors who didn’t book the first time – not losing the brand awareness and equity you built.
✔ Referral Programs – Incentivize travelers to refer friends (e.g., $20 off next tour).

6. Lack of Personalization & Niche Targeting

Weakness:

• Cookie-cutter group tours don’t appeal to travelers seeking unique, private, or local experiences.
• No dynamic pricing or customization leads to missed upsell opportunities.

New Approach:

✔ Hyper-Targeted Tour Experiences – Offer private, small-group, or themed tours (e.g., “Photography Walks in Paris”).
✔ AI-Powered Recommendations – Suggest add-ons (e.g., “Upgrade to a sunset cruise!”).
✔ Dynamic Pricing Strategies – Adjust prices based on demand, seasonality, and customer behavior.

7. Overdependence on Seasonal Demand

Weakness:

• Many operators struggle in off-seasons, leading to cash flow problems.
• No evergreen content or alternative revenue streams to sustain business year-round.

New Strength:

✔ Off-Season Promotions & Packages – Discounted winter tours, local staycation deals.
✔ Year-Round Content Strategy – Blog about “Best Rainy-Day Tours” or “Indoor Cultural Experiences.”
✔ Diversify Offerings – Add virtual tours, workshops, or merchandise for passive income.

What Might be the Best New Business Model Idea?

The “Direct Discovery” Tour Business Model (A hybrid approach that maximizes direct bookings while leveraging smart digital discovery channels.)

Why This Name?

• “Direct” = Focus on owning customer relationships (website bookings, email lists, loyalty programs).
• “Discovery” = Strategic use of SEO, content, and social media to attract travelers and guides organically.
•  Balanced & Modern = Doesn’t reject OTAs entirely but reduces dependency through a diversified system.

Core Pillars of this “Direct Discovery” Model

1. Direct Booking Engine
   • SEO-optimized website with seamless UX.
   • Incentives (e.g., 5% discount for booking direct).
2. Content-Fueled Discovery
   • Blogs, videos, and social content that ranks for traveler intent (e.g., “hidden gem tours in Barcelona”).
   • Guides’ success stories to attract supply (e.g., “How José 3X’d bookings with our tools”).
3. Two-Sided Community Growth
   • For Travelers: Personalization (AI recommendations, niche tours).
   • For Guides: Fair commissions + resources (training, marketing templates).
4. Profit-Protecting Hybrid Distribution
   • Use OTAs for visibility but funnel users to direct bookings.
   • Retarget OTA browsers with ads/emails to capture them later.
5. Year-Round Demand Engine
   • Evergreen content + off-season promotions (e.g., “Winter cooking classes in Tuscany”).
   • Loyalty programs to drive repeats.

Final Thoughts: The Future of Tour Businesses

The outdated business model for tour companies depended on marketplace intermediaries, lacked digital sophistication, and struggled with retention. The new approach focuses on direct bookings and personalized experiences, content-driven growth, SEO, and a two-sided strategy (for attracting both travelers and guides).

By adopting the above strategies introduced, a tour company can:

• Reduce OTA dependence (and keep more profit).
• Attract high-intent travelers organically (via affordable, sustainable SEO & social).
• Build a loyal network of top-rated guides.
• Create a sustainable, year-round business.

Don’t wait to begin building your brand, audience reach, content library, analytics insights, and more. A dominant, sustainable business model and brand start right now.

Find out more about travel marketing strategy and digital travel marketing services.

 * Title graphics courtesy of Freepik.com