Creating & Growing a Beer Tour Operator Business

Transcript

1. Hop On Beer Tours San Luis Obispo, CA USA Dave’s Brewery Tours Sydney, Canberra & Hunter Valley Australia Creating and Growing a Beer Tour Operator Business Dave Phillips Brant Myers
2. Hop On Beer Tours San Luis Obispo, CA USA Dave’s Brewery Tours Sydney, Canberra & Hunter Valley Australia Creating and Growing a Beer Tour Operator Business Dave Phillips Brant Myers
3. Umbrella brand for libation transportation Founded in 2013 Located in tourist triangle – Covering Hwy 101 between LA and SF Who is Hop On and what do we do? Walking tours • Breweries Transportation • Events • Weddings • Corporate Driving tours • Breweries • Wineries • Cideries • Distilleries De facto neutral authority on local beer scene
4. Australia’s only Beer Focused Travel & Events Operator Founded in 2013 as Dave’s Brewery Tours Tour operations in 4 regions, across 2 states Who are Dave’s and what do we do? Walking tours • Pubs • Breweries Transportation • Events • Beer Industry Driving tours • Breweries • Wineries Events • Corporate • Festivals
5. Growth Plans 1 Location 4 Custom Buses 1 Staff 11 Guides 4 Locations 10 Custom Buses 4 Staff 16 Guides 4 Locations (2 states) 4 Buses 2 Staff 15 Guides NOW 2018 6 Locations (3 states) 8 Buses 3 Staff 19 Guides
6. Getting Started Opportunity Geographic Spread – Tours are a reasonable and organized method for visiting multiple locations easily Adapting existing models Gaps in Markets Timing Life Imperative What’s your niche? Do you have one? Do you need one? Alternative to wine tours Are the breweries in your area unique, historic or iconic? Passion for Local Beer is great - but not enough if you want a sustainable business Education or Booze Cruise?
7. Getting Started Contacts Drink Local! Understand the Taproom and Venue Touch Points Learn the stories and align your products Listen to the owners and staff Build and propose a solid plan Back up the plan with consistent delivery Be prepared to adapt your plan As soon as possible, conduct the tours in each venue. Allows you to control • Timing • Tempo • Content • Engagement Take and use all feedback
8. Getting Started Geography Outskirts - Yet concentrated – Making transport a value offering, Time + Fuel = Expenses. Focused region = better service & higher profitability If dispersed, ensure you can support operations, brand and marketing Price Competitive but not undervalued Bottom Up vs. Top Down – DO BOTH Provide a lower-cost version if possible Generate volume with low pricing and provide added value through options Understand your numbers and your real margins Beginner’s Tip Customers WILL compare your tour price with retail offering at Breweries and TapRooms. Make sure your tours represent great value
9. Getting Started Finance Create a business plan to identify expenses Understand what drives costs in your business Half your revenue, double your costs, triple your timeframe If in a partnership – understand each other’s appetite for risk and financial situation Collateral for loans or proof of income Beginner’s Tip New finance takes time and energy to arrange, be prepared ahead of time
10. Getting Legal Forming a business Use the right structure for your situation – think long term Names and Domains Insurance Know what the law requires • Passenger carrying vehicles ($1.5Mil in CA) • Public Liability $10Mil • Fully comprehensive Vehicle • Workers Compensation (legal requirement) • Office and asset Budget for it Don’t risk your business, assets or family by not having it Use a Broker Permits State requirements may differ As your business grows, different permits may be required
11. Getting Legal - Vehicles Inspections Understand your state’s requirements Includes mechanical, licensing and registrations, depot, SOP’s Standards should all be publically accessible Operator Accreditation State and Federal law may require the business to be accredited to carry passengers Accreditation requirements flow down to drivers also Legalisation of UBER and other ride-sharing services poses a threat Beginner’s Tip Make this ONE PERSON’s job
12. Trip Creation How many tours? A complex equation: A function of: • Market • Resources • Brewery Population and Geographic spread • Brewery Opening Hours • Brewery Access Offer Tours daily if possible Develop a range of tour products Provide Private Tour options Understand YOUR minimum PAX number maths It is possible to have too many products! A function of the region, the beer scene and the resources to support marketing and delivery
13. Trip Creation How long should your tours be? Determined by alcohol consumption and distance travelled 45-60 minutes at each location Under 3 hours is a non-event, over 5 hours is a liability Walking tours – 2 mile max 3 Breweries = A tour 4+ Breweries is a long day Consider the guides ability to maintain enthusiasm on long tours If tours include a meal stop, factor in the time and effect it has on guests Pricing is a factor Factor in potential for multiple tours in one day
14. Trip Creation What makes your tours unique, appealing and marketable Dominate your market, monopolize position if you’re first Custom vehicles can set you apart Your Guides and Drivers Brewery access Be a source of information and education Convenient pick up/drop off points Packages – upsell merchandise, post tour options Inclusions Beginner’s Tip “Me Too” businesses only survive with ”no consequence” funding. You must be unique to survive
15. Trip Creation Pricing Output of a well constructed business plan and budget Market tested Include owner wages and costs Beer has lower perceived value so will need to be structured as such Seek preferential pricing from venues to be comparable to self-guided activity Don’t undervalue the offering Understand international visitors view of value if marketing to inbound
16. Running Great Trips Guide Training Cicerone Certified Beer Server minimum Being a “customer” is the best training Have a training manual and training program Train them beyond beer Pay attention to how they learn Make training compulsory for ALL staff Transport Reliability, reliability, reliability. Nothing costs more than a refund + repairs + alternate transportation What would you expect as a customer? Cleanliness is not an option, it is a necessity Group size determines vehicle type Make yours unique Beginner’s Tip People and Vehicles will be your biggest costs and source of most headaches
17. Running Great Trips Meals? Short Tour = Snacks on board or access to customer paid meals at venues Long Tours = Meal included Brewpubs are perfect for meal offering Capitalise on Food Truck phenomenon and variety Determine your market and clientele Meal stops can be a way to “extend” a tour We include meals on all long tours – our tours start at 11am Always have snacks available on board Enable guides to order food at stops if required
18. Running Great Trips Drinks included? Determine your market and clientele Consider length of tour and potential for over-intoxication Negotiate better rates with breweries Gray area (check state laws) for providing free alcohol on-boar Great way to set the right impression or as a “Thank You” to returning clients.
19. Running Great Trips Lodging Hotels may offer better rates if you establish relationship and regularly refer customers Gives customer feeling of Concierge service from your company Set up a referral channel through your booking flow for front desk hotel staff Rack Cards/DL/Flyers in hotels are great if you have public tours Most racks are third-party and they will throw your ads away if not established
20. Running Great Trips Customer Service Guides are Front & Centre Be a Brewery VIP for preferred service Support your guides with policy and process Be always available Address all issues immediately – Best way to avoid bad reviews Reviews Be on all channels TripAdvisor is a MASSIVE resource – don’t fear it! Respond to ALL reviews – within 24hrs Top 5, Bottom 5 – validation tool Develop a language and tone for responses
21. Marketing Social Media Today’s sales channel – avoid at your peril Have a social media strategy and content plan if you can afford it Understand the power of the “influencer” Post daily to engage audience and increase SEO Find your voice and use it, beer should be fun! Websites The ONLY channel you truly OWN Has to be Mobile Responsive Be THE SOURCE of local beer information Fresh content wins! – Google hates old, static pages MUST MUST MUST have a well integrated booking engine PR You are buying access to a rolodex, use wisely Merch
22. Marketing Email and database marketing Database is King – find ways to build it Understand laws around subscriber consent Use Newsletters (eDM’s) to stay in the customer mind Monthly = optimum frequency Consider offline and other methods to build your database Point everything back to your website – Blogs are perfect for this Consider how you use offers and discounts Measure, Experiment, Measure again
23. Marketing Digital and Print Advertising Determined by ROI and Targeting control Digital is where the people are; Print is losing effectiveness Digital provides analytics and ability to change Google AdWords and Facebook Ads are targeted, and effective Postcard and DL fliers in venues Posters at breweries Stickers – place wisely Dominate the market Offline advertising Your Vehicles are rolling Billboards Events & Tradeshows Don’t be a static stand – do or offer something Partner with a Brewery Trade for print ads in programs
24. Marketing Partnerships Start local – Breweries and venues, Chambers of Commerce Understand the value exchange – what you need and what you can give Think Digital – Endorsements = likes and shares Develop packages – Pubs for meals, hotels for stays, OTA’s for offers, attractions for packaged tours Word of Mouth The most effective conversion tool – No Brainer Repeat Sales Reward repeat business – Another No Brainer Beginner’s Tip Partnerships extend your marketing reach
25. Customer Service Customer Service It starts the moment they first interact with your brand Provide multiple and convenient methods for customers to contact you Automate as much as possible/affordable Use consistent and clear communication about your offering Outline as much as possible on website (balance) Outline tour expectations and deliver on them Every tour is a mini special event, things will happen – Be Prepared Give staff authority and skills to handle issues on the day An extra round can go a long way Be available Beginner’s Tip You can avoid having to deal with drunk idiots in how you position your brand and your tours upfront
26. Admin Credit Card processing Absolutely – customer self service and manual entry Mobile card readers for sales on the day Shop around for rates Good Booking Engines allow multiple CC payment API’s Waivers Ability to protect you, your employees, your company in the event of an incidence Some booking engines will let you automate*Required by everyone, not just a group leader or the person who pays Can act as a deterrent for rowdy groups reminding them of their responsibility If not using waivers have tour rules that guides recite as standard practice supported by T&C’s
27. Admin Info for Guests Website is best for this, include: • Photos • Tour Descriptions • Tour Costs • Pick up/Drop off Points • FAQ’s • T&C’s • Contact options Booking Engine drives your order emails and follow up schedule Have multiple contact methods and resources to support each one in place Beginner’s Tip Use your Booking Engine to automate customer confirmations and follow ups. As you grow, you won’t be able to manage all contact yourself
28. Your Team Hiring and Keeping Guides Guide first, beer second, driver third – Hire in that order Scout talent through beer events and community Retain through structured evaluation and raises, incentives or bonuses Always hire more than you need to ensure availability (CASUALS) Your business is built on fun so make sure it’s fun for your staff too Incentives are easy to come by in our game Train & Develop them – job sharing/multi-tasking Churn happens - hopefully they churn into the beer community and continue to advocate Support them with process, policies, systems and some leeway to make decisions which support positive guest experiences
29. Your Team Hiring and Keeping Employees The team goes beyond guides Operational team members must be • Organised • Communicative • Professional Hire for aptitude and attitude, you can teach the rest Share “ownership” – real and perceived Provide discounts for employees if they want to take their friends or family Use your resources for “field trips” during slow days or seasons Support your people with policy, process and systems Look ahead and succession plan – always!
30. Cheers & Good Luck