As the holiday season approaches, consumers are already making their wish lists. The National Retail Federation reports that 59% want gift cards this year. While that’s excellent news for the last-minute holiday shopper, it could also mean more bookings for you.
That’s because the gift card market is booming, with projections that it could reach a staggering $2.3 trillion by 2030. . This growth isn’t just about convenience; it’s a shift in the way people think about giving. More consumers are choosing experiences over physical items, with 46% planning to purchase intangible gifts, like food and beverage experiences.Instead of giving something that will end up in a landfill, consumers are choosing to give lasting memories.
Millennials, now entering their prime spending years, are driving this trend. They’re leading the way in online purchases and showing a clear preference for electronic gift cards over traditional plastic ones.
Putting everything together — as a tour and activity business — you’re in a good position to sell gift cards online for Black Friday, Cyber Monday, Travel Deal Tuesday, and beyond.
Why digital gift cards are popular
While the joy of unwrapping a physical gift remains unmatched for some, virtual gift cards are growing in popularity. Not just during the holidays, but all year long. Here’s why they’re becoming the first choice for many:
- Choice: In a world of endless options, shoppers appreciate the ability to let the recipient choose their perfect experience.
- Unmatched convenience: E-gift cards are quick to purchase and instantly delivered, ideal for last-minute shoppers or those with far-flung loved ones.
- Hassle-free shopping: Buyers can avoid crowded stores, parking problems and long lines by shopping from the comfort of their own home.
- Budget-friendly: Gift cards come in fixed dollar amounts, helping shoppers stay on budget.
- Extended validity: Regulations ensure that gift cards are valid for at least five years, giving recipients plenty of time to use them.
- Straightforward gifting: Recipients don’t need to carry around physical cards, reducing the risk of losing or forgetting to use them.
These factors make digital gift cards an attractive option for consumers. But what’s in it for your tour and activity business?
Why you should sell gift cards online
Implementing a gift card program can significantly boost your business. While displaying physical gift cards at your location is valuable, selling them online directly from your website opens up a world of marketing opportunities.
1. Generate buzz around a specific season or event
The festive season isn’t the only time for gift-giving. From birthdays to Valentine’s Day to just because, consumers always have a reason to look for gift ideas. So, there are plenty of opportunities to promote your gift certificates year-round.
Unlike physical cards that require advance ordering, digital gift cards offer unparalleled flexibility. You can create themed designs for upcoming occasions on the fly, seamlessly integrating them into your seasonal marketing strategy.
For example, let’s say you offer a Tulip Tour and Tea around springtime. Since many mothers would love this experience, you can promote it leading up to the second Sunday of May, along with a custom Mother’s Day gift card. This approach allows you to tap into various gifting occasions throughout the year, keeping your offerings fresh and relevant.
2. Drive website traffic and brand awareness
When someone receives a gift certificate, their natural inclination is to explore what they can buy with it. With digital gift certificates, that exploration happens on your website, driving valuable traffic to your tours and activities.
The beauty of gift cards is their potential for repeat engagement. Depending on the value of the voucher, recipients may return multiple times to use their full amount. And because experiences are often shared, they’re likely to bring friends and family along, potentially turning them into repeat customers. The cycle – hopefully – never ends.
On top of that, your gift card advertising ideas can lead to a spike in website traffic. By always including a link to your website in your promotions, you create a direct path for potential customers. In addition, optimizing your site for relevant keywords – such as “wine tasting gift card” – can improve your organic reach and attract those who are specifically searching for activity-based gifts.
3. Boost customer engagement and loyalty
Most often, plastic gift cards come with a blank envelope. The gift-giver can sign their name, write down the dollar amount or leave a thoughtful message, making it seem less generic.
Your guests can do the same with e-gift cards. For instance, Checkfront’s gift certificate add-on lets the sender write a message at the time of booking, choose the theme, and pick a specific, automated delivery day. This level of customization adds a personal touch to the gifting process.
Digital gift certificates also open up new channels for customer communication. You can set up email notifications to inform recipients of their gift, remind them of their remaining balance, or share exciting new experiences they might enjoy. This ongoing engagement isn’t possible with traditional plastic cards, giving digital options a significant advantage in building lasting customer relationships.
The enhanced personalization and seamless user experience leads to higher levels of satisfaction for both the giver and the recipient, fostering loyalty and encouraging repeat business.
4. Increase revenue and your bottom line
Gift cards are powerful revenue generators, whether they’re plastic or digital. Here’s why:
- Guaranteed revenue: When a customer purchases a gift card, you receive immediate payment, increasing your cash flow.
- Cancellation protection: If the recipient can’t make the reservation, the refund is typically applied back to the gift card, ensuring you keep the revenue.
- Up-sell opportunities: Since the recipient doesn’t book with their own money, they’re usually more willing to purchase add-ons or merchandise — 65% spend more than 38% of the gift card face value.
- Sometimes make extra money: An astonishing $1 billion worth of gift cards go unused each year. While the goal is for customers to enjoy their experiences, unused cards represent pure profit.
Where physical and virtual gift cards differ is in the upfront cost. Gift cards with a full-colour design and magstripe or barcode can run you 75 cents per card. Of course, you can get a better deal ordering large quantities, but what if you don’t sell out? Digital gift cards, on the other hand, have minimal production costs.
Some software providers offer digital gift card programs for free, charging only a small processing fee per transaction. Others, such as Checkfront, include a gift card add-on as part of their comprehensive booking system.
Maximize the potential of your gift card program
To get the most out of your gift card offerings, consider these strategies:
- Diversify payment options: Offer a variety of payment methods, including PayPal, Mastercard and Visa credit cards. This accommodates different customer preferences and can help increase sales.
- Optimize for mobile: Ensure that your ecommerce platform provides a seamless experience across all devices, especially smartphones. With more people shopping on their smartphones, a mobile-friendly checkout process is critical.
- Booking system integration: Use a comprehensive solution like Checkfront to seamlessly manage gift certificates alongside your regular bookings. This integration can streamline operations and provide valuable insights into customer behavior.
- Launch targeted marketing campaigns: Use social media, email marketing and your website to promote your gift certificate offerings and build brand awareness.
- Encourage user-generated content: Encourage happy customers to share their experiences on social media. This provides social proof and can inspire others to purchase gift cards for their experiences.
Final thoughts
Selling gift certificates online is a powerful step for tour and activity companies looking to drive sales. It generates immediate revenue, increases brand visibility and builds customer loyalty. With the right tools and approach, you can tap into the booming gift card market and significantly increase your bookings.
While it’s beneficial to offer both physical and digital gift cards for an omnichannel experience, if you’re new to gift card programs, starting with online offerings is a smart move. It allows you to test the waters with minimal upfront investment and provides valuable data on customer preferences. Luckily, with Checkfront, you can get an all-in-one solution that combines booking software with a robust e-gift certificate system. This integration allows you to seamlessly manage your gift certificate program alongside your regular bookings, providing a single platform for all your operational needs. Here’s how to sell gift cards online with Checkfront.
Ready to revolutionize your gift certificate sales and increase your bookings? Book a free demo with Checkfront today and discover how our integrated solution can streamline your operations and help your business thrive in the digital age.
Want to try out Checkfront’s online gift certificates?
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