Small group profitability

OPERATORS have hit back at comments made by The Travel Corporation (TTC) Global CEO Brett Tollman on the profitability of small group tours (TD yesterday).

Responding to Tollman’s assertion that “you can’t make money, I can guarantee you, operating a trip for 10 or 12 people,” G Adventures MD for Australia and NZ Adrian Piotto told TD “we look beyond profit and instead measure by ‘The Quintuple Bottom Line’ – People; Planet; Profit; Passion & Purpose.

“It’s been working for us, having run a profitable business for the last 30 years.”

Piotto said by running tours with a community tourism focus and an average size of 12 people, more money stays local and travellers have a better, more culturally immersive experience.

APT Travel Group (ATG) CCO Debra Fox told TD that while the margins on smaller tours are “tougher”, ATG had been operating small group journeys for nearly two decades.

“It comes down to relevancy and having things that meet the clients’ needs, not trying to take an old model and fit it into customers’ changing expectations.”

Fox also highlighted a fastgrowing desire for small and mid-sized groups, including tailormade touring, with the trend extending to ocean and river cruising, where pax are seeking out super niche small group experiences whilst onshore.

Ormina Tours CEO Ross Ioppolo told TD Ormina has seen growth for its small group tours, with a maximum group size of 10, but noted there was definitely still a market for larger groups of 30+.

“Our clients tend to be well travelled and looking for a shared experience that provides a level of independence which can only come with a smaller group.”

Crooked Compass Founder Lisa Pagotto said more small group operators are emerging due to evolving traveller demands.

“They crave intimate encounters...& the exclusivity that only comes when you travel with a handful of people,” she said.