Revenue Per Guest (RPG) is the total amount of money each customer spends with your business during their entire experience with you. Unlike just looking at your base tour price, RPG includes everything: the main activity cost, equipment rentals, photo packages, meals, transportation, tips, and any other add-ons they purchase. It's the metric that shows you how much each guest is actually worth to your business.
Why RPG Matters More Than Tour Prices ↗
Most adventure operators focus on tour pricing, but that's only part of the story. You might charge $150 for a rafting trip, but if guests also buy photos ($40), rent premium wetsuits ($25), and add lunch ($20), their actual RPG is $235. That's 57% more revenue from the same customer – without selling any additional tour slots.
Understanding RPG helps you see where your real profit opportunities lie. Maybe your basic hiking tour has thin margins, but the photo packages and gear rentals make it highly profitable. Or perhaps your expensive multi-day trips actually have lower RPG than shorter tours with better upsell opportunities.
RPG thinking shifts your focus from just filling tours to maximizing the value of each guest relationship.
Quick Win: Calculate Your Current RPG ↗
For the next month, track total revenue divided by total guests (not just base tour prices). You might discover your actual RPG is significantly higher or lower than you thought.
Break it down further: What's your RPG for different tour types? Different customer segments? Different seasons? This data reveals which activities and customer types are most valuable to your business.
Strategies for Increasing RPG ↗
Smart upselling – Offer equipment upgrades, professional photos, or meal add-ons that genuinely enhance the experience. The key is timing these offers when guests are most excited and engaged.
Value bundling – Package complementary services together at a slight discount. A "complete adventure package" with gear, photos, and lunch often has higher acceptance than selling each item separately.
Post-experience opportunities – Follow up with photo sales, gear purchases, or booking their next adventure while the experience is fresh in their minds.
Seasonal add-ons – Offer hot drinks and warm gear during cold seasons, or cooling towels and extra water during summer heat. Weather-responsive add-ons often have high acceptance rates.
Group-specific offerings – Corporate groups might pay for team photos and catered meals, while families often want individual photos and kid-friendly snacks.
Common RPG Mistakes ↗
Focusing only on expensive tours – A $300 tour with no add-ons might generate less RPG than a $150 tour with $100 in extras, and the extras often have much higher profit margins.
Pushy upselling – Aggressive add-on sales can ruin the experience and reduce repeat bookings, ultimately lowering lifetime customer value.
Not tracking properly – Many operators don't separate base tour revenue from add-on revenue, missing opportunities to optimize their most profitable offerings.
Ignoring seasonality – RPG often varies dramatically by season. Understanding these patterns helps you plan marketing and staffing strategies.
RPG vs. Other Metrics ↗
Revenue Per Available Spot – This measures efficiency but doesn't account for add-on opportunities or customer value differences.
Average Transaction Value – Similar to RPG but doesn't capture the full guest relationship or repeat visit potential.
Customer Lifetime Value – Broader than RPG as it includes multiple visits, but RPG helps optimize each individual experience.
RPG optimization works best when combined with effective upsell and cross-sell strategies, integrated into your overall revenue management approach.
For detailed strategies on increasing your RPG, check out our guide on maximizing revenue per guest in adventure tourism ↗.
Keep Learning ↗
RPG is closely connected to other revenue optimization strategies. You might want to explore upsell techniques to increase add-on revenue, or learn about cross-sell strategies to maximize the value of each guest relationship.