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Discover essential tips to effectively engage with the travel trade industry, attract more…
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: -
OTAs and businesses such as, Get Your Guide, Viator, Tiqets will need:
There are a few hard and fast rules to what makes a ‘Travel Trade friendly’ product.
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.
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.
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