Discover essential tips to effectively engage with the travel trade industry, attract more…
What is a Travel Trade Bookable Product?
Businesses that want to work with the Travel Trade will need to abide by certain criteria. Those that are unable to do so, are unlikely to be able to be sold through these platforms. In general, a product that is to be sold through a third party (tour operator, OTA, or hotel concierge) needs to have these key aspects: -
- An entrance fee.
- An agreed commission rate based on a successful sale.
- Bookable in advance.
- A fixed price available across the year – this price may change at more popular times of the week or by season.
OTAs and businesses such as, Get Your Guide, Viator, Tiqets will need:
- A minimum price of £8 for adults.
- Available all day, every day.
- The ability to book specific time slots, if that is required via an API connection.
What makes a trade friendly experience at an attraction?
- Commission rates around 20% below public pricing.
- Credit facility and payment post-consumer visit.
- Availability every day or as often as possible.
- Minimum entrance fee of £8 for adults and particularly for OTAs.
- API connectivity from your booking system to an OTA.
- Upsells for example, early opening, private activities, hands on experiences and tours which are not generally available to the public. These options must be available as often as possible and generally not as a one-off event.
- Willingness to participate in Familiarisation Trips (FAM).
- Time sensitive options for tour operators that may have limited time on site, due to itineraries.
- Generic versions of experiences that the travel trade can easily sell, rather than bespoke products.
- Well briefed staff on how the travel trade business differs from walk up and direct bookings.
What makes a trade friendly accommodation provider?
- FIT can mean Fully Independent Tour of Flexible Independent Traveller. FIT rates need to be available on allocation, which can vary across the week and by season.
- Rates need to be available up to 18 months in advance, with these rates being held until 28 days or less before the arrival date.
- Electric car charging points for self-drives.
- Minimum 3- star rating for European markets, and 4-star for the US market.
- Quirky or unusual aspects to the property as a point of interest.
- Historic, boutique and high-quality independent hotels or serviced apartments.
- City centre properties with good on-site facilities.
- Upsells available including meet & greet, spas, golf, afternoon tea, etc.
- Excellent sustainability aspects, food on site, rewinding and countryside /coastal properties, etc. Sustainability needs to be more than just asking if towels can be left hanging, rather than be replaced.
- Commissionable rates that are fixed and not likely to be undercut by best available rate, except on tactical offers that are short term.
What makes a Travel Trade friendly product?
There are a few hard and fast rules to what makes a ‘Travel Trade friendly’ product.
- A good product needs to be sellable & tangible, concepts won’t work.
- Preferably pricing needs to be set 12-18 months in advance, this is because this follows typical hotel contracting timelines.
- All prices must have a travel trade commission available, which is not the same price, as the public price.
- The frequency and availability of the product needs to be regular for it to be included in tour operator programmes and ideally daily for OTAs.
- Cancellation policy, child policy and any other relevant details, needs to be supplied with pricing.
- Final numbers are always confirmed in advance, but it is much easier to work with your product if you offer credit. This means you as a supplier, will be paid after the visit has taken place and usually within 30 days. OTAs will pay you as the supplier, on the day that they receive the booking from their customer.
What makes a group/ coach friendly product?
- Group organisers will book around 6 months in advance and coach operators up to a year in advance, with prices set with group rates accordingly.
- Group organisers will expect free entry for themselves and often for their coach driver too. Coach drivers and guides will expect to be given a food/beverage voucher.
- Group organisers will want to know what the minimum number for a group will be at the time of enquiry and what special services they may get.
- Coach parking will be a requirement with free parking preferred. They will cancel a trip if they cannot fill enough seats.
- Group Travel Organisers prefer to come when school groups have already left or are well on their way round. It is helpful to advise them on the best time to visit.
- Group Travel Organisers will often want a free visit (‘FAM trip’) in advance of bringing their group.
- FITs may also use sightseeing buses or arrive by coach if they are on a day tour, these could be smaller coaches.
- FITs will all be travelling on an individual ticket even if they arrive on a coach.
- FITs often arrive by car, on local transport, or bike.
Considerations when working with the travel trade
- What are your capacities and available space and are you suitable to support both FIT, small or large groups? You can decide minimum and maximum group numbers. Remember the travel trade can often be maximum group sizes of 15.
- Do you have times of the year, days of the week where you are less busy? Could this operator provide that much needed business, that you want and need?
- What market or type of customer is your product offering relevant for? Do you have a particular offering or theme that will appeal to a certain nationality or interest? Do you have any guide information/books that could be translated into different languages to support this or audio guides for international audiences?
- High value bookings, do you have a luxury or deluxe option that you want to promote? International visitors have money to spend.
- Do you have a product or experience that is niche, but could it appeal to a special interest group from around the world, bringing in a much wider audience?
- Do you use local products? Remember international visitors to the North East want to taste, see and be able to purchase products that are sourced locally, they want to experience the North East whilst they are in the region and go home and tell everyone about us.
Pricing and Commission Structure
Commission: This is an agreement to pay a fee on a successful sale to the tour operator who has sold your product or service, to their client. The consumer will pay the standard entrance fee, but the venue will receive this amount less around 20%. Commission is only paid to the travel trade buyer, that you as the supplier are working with, for a successful sale; so, it is a no win no fee relationship. Changing your product for the travel trade will make it more valuable and this will cover some of the commission costs.
Pricing Strategy: It is VITAL that the venue does not increase their charge to cover the commission. It is a cost of business and not a cost of sale.
- Do not offer discounts to the public (for example via your website) that is below the rates you have agreed in your travel trade contracts with the buyers. There is no surer way to upset your new travel trade partnerships, than for them to receive a client complaint saying they have found it cheaper elsewhere.
- The advantage of the travel trade is that a visitor who buys your service through a tour operator is much more likely to increase their secondary spend in gift shops and cafes, particularly international visitors.
Contracts: Every business selling through a tour operator or OTA, will have a signed agreement or contract that will set out the terms of business for both parties. Contracts are for 12 months and will be renewed each year.
Payments: The travel industry will require a credit agreement which will mean that the venue, experience, etc will be paid usually 7- 30 days after the consumer’s visit. This will be agreed at the contract stage. The exception to this is sales through OTAs, which are usually paid as soon as the consumer makes their booking.
Please be aware if a consumer cancels their booking the venue will need to reimburse the OTA immediately.