Episode 32
How Much Should You Spend on Marketing and Booking Software?
Marketing and booking software aren't two separate costs. They're one revenue system.
Set the right marketing and software budget
In this episode of the Tour Operator Growth Podcast, Nikki and Greg sit down with Scott Riddell, ResmarkWeb's sales manager and the person you meet when you book a discovery call. The question Scott hears most from operators is about price: how much should marketing cost, and how much should booking software cost? His short answer on marketing is 5 to 10 percent of revenue (Gartner puts the cross-industry average around 7.7 percent), with the right figure depending on where you are in your business life cycle.
From there they dig into what actually counts as marketing (far more than ad spend) and how to tell whether a dollar is an investment or just spend. Scott reframes booking software as an ERP for your whole operation, not just a point of transaction, and shows how the wrong system quietly costs full-time-employee levels of time. His closing advice: know your numbers, and treat marketing and software as one revenue system instea.d of two separate line items
Frequently Asked Questions
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How much should tour operators spend on marketing?
About 5 to 10 percent of revenue, whatever your size (Gartner's cross-industry average is around 7.7 percent). Push toward 10 or 12 percent if you're growing aggressively; spend less, or redirect it to shoulder seasons and premium products, if you're mature and near capacity.
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What actually counts as marketing spend?
Far more than ad spend: payroll, agencies, website, SEO, content, conversion work, AI visibility, email and CRM, trade shows, partnerships, and reseller commissions. Many operators only count their Google ads at around 3 percent and miss the full picture.
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How do I know if my marketing is an investment or just spending money?
Ask what it's actually doing. Good marketing drives profitable new revenue, builds an owned asset you can reuse (email list, rankings, content), or teaches you something (which audiences, offers, and price points convert). If all you're reporting is impressions, clicks, and followers, that's spending for the sake of spending.
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How should operators think about the cost of booking software?
Treat it like an ERP for your whole operation, not just a point of transaction. The true cost is more than the monthly price: transaction and payment fees, setup, integrations, internal admin, training, errors and rework, manual processes, and the cost of switching.
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What does the wrong booking software actually cost?
Far more than the invoice, and mostly hidden in time. Scott's example: 20,000 bookings that each take five extra minutes is about 1,700 hours a year, a full-time employee before overhead. Operators tolerate it as part of doing business, but the right system removes most of it.
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How do I know if my booking software is worth the cost?
Score it on what it does: revenue capture, productivity, utilization, customer experience, and risk. Compare your operating metrics before and after a new system, like booking more with fewer phone calls, or data staying accurate across systems. Software can be working and still not be moving your KPIs.
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How important is the team behind the software?
The team is part of the product. Judge support by implementation, peak-season emergencies, and how it handles change, not just ticket speed. A good team knows the industry and asks why you do something before finding a fix. The license gives you the tool; the support decides whether you get value from it.
