Discover essential tips to effectively engage with the travel trade industry, attract more tourists, and grow your business.
Who are the Travel Trade?
The term Travel Trade is a way of describing the working relationship, usually under contract, between any supply chain business, for example accommodation, attraction, transport, flights, experiences, etc and a buyer of services. Buyers are split into two main groups:
- Domestic: meaning within the UK, who service the UK market and inbound international, with buyers based in the UK and servicing international markets.
- InternationaI: Tour operators selling through an international network of travel agents or smaller operators using their services, including destination management companies and online travel agencies.
A buyer for the travel trade will buy and sell bookable products either through tours, experiences or holidays, normally direct to their clients and usually up to groups of 15.
Impact of the Travel Trade
The value of tourism to the UK is huge and is estimated to be worth £257 billion by 2027. It contributes over 7% of the UK’s GDP, with 80% of international visitors to the UK currently using tour operators to book to come here. The travel trade and inbound tourism has a positive impact on regional economies, being able to sustain and bring skilled jobs to the region. Data suggests that international tourism spend in the UK is due to grow 20% by 2027, in comparison with a UK average of 5% for the wider economy. Every customer through a tour operator is adding around 80% more revenue to a supplier’s sales figures.
International visitors are incredibly valuable to the North East, spending £400 million in the region in 2019. Working with the travel trade, will further aid the growth of this sector, supporting jobs and businesses across the region.
Resources to help you engage with the Travel Trade
10 benefits of working with the Travel Trade
- Advanced bookings and longer lead times.
- Enhanced distribution channels to market your business, resulting in overall business growth.
- New and repeat business, reaching new customers.
- Increase visitor spend, particularly as international visitors spend on average three times more than domestic travellers on each trip.
- Building strong B2B relationships with buyers, which can lead to long term partnerships.
- One tour operator can sell to many different channels and countries, which you wouldn’t normally be able to reach.
- Concept testing - they can help you develop new products within your business and as a destination.
- Travel patterns of international visitors are not focused on weekends and may level out seasonality problems, which is very different to domestic visitors.
- Working with the travel trade allows businesses and suppliers to spread risk across a range of international markets, this can minimise the impact of any changes happening in the domestic or a single international travel market.
- Working and meeting people from different cultures can be very rewarding and interesting.
Interested in collaborating with the Travel Trade?
Who are the Buyers?
Domestic
- Group Travel Organisers (GTOs) – often their clients are retired and run social groups for their members.
- Coach operators – selling coach tours to the domestic market either directly to consumers or via Group Travel Organisations.
International
- Tour operators sell through an international network of travel agents or smaller operators using their services, which can also be Destination Management Companies (DMCs).
- Online Travel Agencies (OTAs), run large scale online platforms, e.g. Get Your Guide, Trip Advisor or Viator and those who sell product directly to consumers.
- Sightseeing companies sell to the public via hotel concierge and online travel agencies. They work in the same way as a tour operator and only operate online.
- Wholesalers develop and supply their own inclusive tour packages and accommodation, which are sold through retail travel agents to clients with other package elements.
- Ground Handlers organise all arrangements for international travellers from when they arrive in the UK, until they leave.
- Travel Agents organise travel and accommodation for visitors and sell services on behalf of suppliers, for example airlines, accommodation providers, transport, and packages.
What is the difference between Groups or FIT?
FIT
FIT can mean either Fully Independent Tour or Flexible Independent Traveller, which includes any type of travellers for example couples, individuals, families. These types of consumers within the travel trade will have booked through a tour operator, but will not be travelling on their visit as part of a group. The consumer’s visit, e.g. travel, accommodation, activities, attractions, guides, will have been arranged through a tour operator, giving these consumers the opportunity to take advantage of the knowledge and experience of the operator that they select.
Groups
The term groups means, when the consumer travels they will be travelling as part of a group. This group may be strangers, be part of a social group, an extended family, a couple or individuals. The groups will book onto a pre-arranged tour on sale by a tour operator. The group will arrive together, stay in the same accommodation and normally visit the same attractions and have the same experiences, whilst visiting a region. Group rates would need to be available.
