By Kevin Tjoe — 8 Feb 2022
No matter what type of tour or activity your business provides, bookings are essential in keeping your business afloat. Direct bookings made through your website are often an operator’s preferred method however, relying on a single stream of bookings has its downsides. By expanding your business to accept multiple streams of bookings, you’ll be able to grow your revenues and ultimately maximize your profits. One way to do this is to utilize different types of resellers to promote and resell your services.
In this article, we’ll go through the 5 different types of resellers you can partner up with to expand your revenue streams. We’ll break down the standard commission rates and the differences between each type of reseller, so you can make an informed decision when selecting the right reseller for you.
Typical Commission: 25-30%
The most popular type of reseller tour providers partner up with are large online travel agents (OTAs). OTAs are platforms such as Viator, GetYourGuide, Musement, Expedia, Klook that often resell multiple forms of travel-related products within one website. These products can range from accommodation, transportation, airfare, activities, and more.
OTAs are a popular choice when it comes to resellers as they attract thousands of views to their website each day globally and they’re easy to activate. It’s for this reason, many operators choose to partner up with large OTAs as it’s the fastest way to start gaining large quantities of bookings. And on top of that, they provide high levels of exposure for your business too.
The standard commission rate OTAs usually charge is between 25-30%.
Typical Commission: 15-20%
Second, on the list are local travel agents. These are smaller travel agents within your area that offer personalization for customers when booking trips. These could be agents that specialize in booking multi-day tours, flights, private charters, and more.
Local travel agents are popular amongst travelers looking for guidance and advice when building an itinerary during a trip. By working closely with local travel agents within your area, they’re able to promote your tours and activities on a personal level to their customers.
The benefit of working with local travel agents is that they provide consistency in incoming bookings. As most of their customers are repeat customers, oftentimes they’ll rebook your services through these agents. Competition with other operators is also very low as they don’t work with as many providers as OTAs do.
Furthermore, the standard commission rate for local travel agents ranges between 15-20%, making them relatively affordable to work with.
Typical Commission: 10-15%
Partnering up with accommodation facilities such as hotels is the perfect way to receive last-minute bookings. Since many travelers don’t usually plan their activities until they’ve arrived at their destination, featuring your services at hotels is one way to be found.
By partnering with local hotels in the area, they’ll be able to promote your services to all their guests. Business pamphlets at reception and in rooms are one-way accommodation providers help promote your business. This encourages their guest to enquire and make a booking via the concierge. QR codes on premise are also an increasingly popular way to drive bookings and track performance and payment.
There are many benefits of working with accommodation providers. The main one being low competition. Because hotels act as a referral to your business, your services are a direct reflection of the hotel’s reputation they need to maintain. It’s for this reason accommodation providers only work with a handful of trusted and professional tour operators.
Additionally, because they have no cost when getting your business bookings, their commission rate is a lot lower compared to other agents. Their standard commission rate ranges from between 10-15%.
Just like accommodation providers, information centers are a great source of capturing last-minute bookings. Foreign travelers looking for more information and recommendations of the area often seek information centers for guidance.
By partnering with information centers, they’ll be able to recommend your activities to travelers looking for things to do. Additionally, because they have great authority within the area, their recommendations are deemed trustworthy and reliable. This encourages travelers to follow through with placing a booking.
It’s also important to note that the majority of travelers that seek recommendations from information centers are often there on day trips.
And just like accommodation providers, they have low commission rates with a standard of between 10-15%.
This may come as a shock for you, but yes, other tour operators fall on the list of different types of resellers. Reselling through operators with services that complement yours is a good strategy. Travelers are commonly looking for recommendations from locals, and the credibility of a fellow quality tour operation can be very influential.
For example, if your business provides traditional local art classes, partnering with operators that provide local city tours may be a smart move. By having this strategy in place, not only do you gain consistent bookings, but you also provide the tour company with activities they can add to their itinerary. It’s a win-win for both parties.
The standard commission rate other tour operators charge is between 10-15%, however, this partnership is usually more flexible.
Now that you have a clear understanding of the different types of resellers, you may be wondering about the best way to connect with them. Joining a tour operator marketplace is one way to help alleviate the stress of partnering up with multiple resellers.
For instance, Rezdy Channel Manager is a marketplace platform designed specifically for tour operators. Through Rezdy Channel Manager, you’ll be able to connect with thousands of resellers with a click of a button.
Rezdy’s Marketplace platform simplifies the overall reselling process into 3 simple steps:
Ready to take the step to boost your bookings with Rezdy Channel Manager? Book a demo today.