Arara Tour
About the Company
Arara Tour is headquartered in Armenia, offering tours in Armenia, Georgia, Azerbaijan, and Central Asian countries such as Uzbekistan and Kazakhstan. The company provides unique combined country tour packages, like Silk Road tours, which include multiple destinations. By owning branches in other countries, Arara ensures price and quality control, making it a standout tour operator in the region.
In 2019, the company achieved $13,000 monthly revenue, doubling its 2018 earnings. However, the COVID-19 pandemic in 2020 drastically impacted the tourism industry. Arara adapted by planning tours to new destinations, such as Ukraine, Moldova, and the Baltic states, aiming to attract repeat customers and expand its market reach.
The company’s strengths lie in its innovative approach to tourism and its ability to adapt. Owning branch offices in key regions allows Arara to offer high-quality, cost-effective tours and cater to travelers seeking immersive experiences across several countries.
Idea Behind Company
Nune’s journey began with a strong passion for tourism and a background in the travel industry. After her previous employer closed in 2014, she joined Arara as its director. Though initially hesitant about entrepreneurship due to financial constraints, she embraced the opportunity to build the company from scratch.
The company’s success started with guaranteed fixed-date tours, enabling travelers to book group trips and share costs. This model helped Arara attract customers quickly and achieve small profits within its first year.
Expanding beyond Armenia, Nune identified Central Asia as an untapped market popular among Western tourists. Arara ventured into the region by launching a branch in Tashkent, Uzbekistan. Despite initial losses, this expansion provided valuable experience and trust among returning travelers.
Creating the Company
Arara’s first offerings were carefully designed tour packages displayed on its website, which played a critical role in attracting customers. The website provided detailed itineraries, travel tips, and high-quality visuals to inspire confidence in potential travelers. Emotional connection and trust-building were emphasized, as holidays are unique and irreplaceable experiences.
To enhance customer engagement, Arara incorporated social proof through testimonials and maintained an active presence on platforms like Facebook, Instagram, and TripAdvisor. The company’s dedicated sales and tour managers ensured exceptional service and memorable experiences for clients.
Arara’s focus on continuous learning helped the team improve. From monitoring email communication to identifying weaknesses in their sales funnel, they constantly refined their processes. Over time, these improvements boosted the company’s sales conversion rates and customer retention.
Launching the Business
Arara’s initial investment was modest, with a $70 WordPress template and basic hosting. The founders hired a content manager to create engaging travel articles and implemented pay-per-click (PPC) advertising to attract inquiries while building organic search engine traffic.
The company emphasized data-driven strategies, analyzing conversion rates and customer feedback to refine its business processes. Regular training sessions in communication, sales, and business evaluation helped the team adapt to changing market demands.
Arara also prioritized fairness and transparency with customers and partners, ensuring trustworthiness. By expanding its product offerings and diversifying its markets, the company attracted repeat customers and mitigated risks associated with focusing on a single region.
Earnings
By 2021, Arara Tour generated $22K in monthly revenue, with a gross margin of 20-25% and customer acquisition costs at 3-4% of annual revenue. The company’s website attracts 20,000 unique visitors monthly, leading to a consistent stream of inquiries and bookings.
Arara’s operations include booking accommodations, meals, guides, and excursions for travelers. Its strong control over pricing and quality has enabled it to deliver exceptional service across multiple regions.
Future goals include expanding operations into Belarus, Ukraine, Russia, and the Baltic countries. The company aims to build a loyal travelers’ community by offering a diverse range of destinations, ensuring sustainable growth in the competitive tourism industry.
