Champagne at an Active Volcano: Selling Luxury Tours in Remote Places
Ryan Connolly went from finance analyst to glacier guide to co-founder of Hidden Iceland. In this episode, he shares the numbers behind their most pivotal business decision: cutting small group tours that represented 50% of their departures but only 10% of revenue.
That shift to exclusively premium and luxury private tours helped the company grow by 5% while improving quality and profitability. Ryan explains how relationship marketing drives 70% of their bookings directly without OTAs, why they lead with education when working with travel advisors, and why PR outperforms paid advertising when selling luxury experiences.
Plus, the story of how a three-year journey across 40 countries led him to Iceland, where he met his wife on a glacier tour and built a business with two partners.
Top 10 Takeaways for Tour Operators
1. Cut unprofitable segments ruthlessly
Small group tours accounted for 50% of Hidden Iceland's departures but only 10% of revenue. After eliminating that segment, they grew 5% by focusing resources on premium and luxury private tours where margins are higher.
2. Partner with competitors instead of viewing them as threats
When customers can't afford Hidden Iceland's luxury pricing, Ryan personally introduces them to partner companies that serve the budget segment. This maintains relationships and positions them as helpful experts rather than pushy salespeople.
3. PR drives better ROI than paid ads for high ticket sales
Over 450 articles in publications like Condé Nast, Forbes, and CNN have driven 70% direct bookings. For luxury trips ($20,000+), earned media builds trust better than Facebook or Google ads.
4. Lead with personal story in first customer contact
Ryan's initial email starts: "Hello, my name is Ryan. I'm originally Scottish. I've lived in Iceland since 2016. I originally trained as a glacier guide..." This builds immediate trust and differentiates from transactional competitors.
5. Educate travel advisors. Don't just sell to them
Hidden Iceland runs webinars teaching agents about Iceland's seasons, distances, and what each time of year offers. Not sales pitches. The education first approach builds meaningful advisor relationships that generate 30% of bookings.
6. Vet activity partners on safety and environmental standards
Before partnering with snowmobile companies, helicopter tours, or other providers, Hidden Iceland shares their own safety and environmental policies first, then asks partners to reciprocate. This creates collaboration, not just transactions.
7. Train guides to be themselves, not follow scripts
Instead of teaching guides what to say at each stop, Hidden Iceland tells them: "Be yourself in the most authentic way possible and create genuine connections." This leads to reviews that praise the guide more than the destination.
8. Choose conferences strategically. Avoid the herd
Ryan skips luxury travel conferences if more than 2 or 3 other Iceland companies will attend. Less competition means easier differentiation and more meaningful conversations with travel advisors.
9. Keep the sales process low tech and high touch
Despite having a CRM (LEMACS), Hidden Iceland puts key itinerary details in the body of emails and offers phone calls early. For luxury clients, human connection trumps slick automation.
10. Build the business with partners you trust implicitly
Ryan emphasizes: "Don't set up a company with anyone you don't trust inherently and that you believe will communicate effectively during the hardest times." Through pandemics and volcanic eruptions, Hidden Iceland's three owners have never shouted at each other because they chose partnership carefully.
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