By Blake Ng — 11 Jan 2018
Your ability to grow your tour and activity company depends heavily on your distribution strategy. Through your distribution strategy, you should be partnering with various tour agents who will resell your products to their own customers. Of course, when they resell your products and help you boost your bookings, they will be expecting a commission in return.
Commission is the fee that you pay agents who market your products and resell them to their own customers. For your tour agents, their commission is their income, and it’s what motivates them to encourage their own clients to book your products. While commission payments may seem like an extra expense, it is a necessary fee to pay if you want to increase your reach amongst your target market segments.
The standard rates for commission in the tour and activity industry vary based on the type of tour agent that you are working with. The following can be used as a guideline:
While the industry standards are important to know, you also should recognize that you can motivate agents to sell your products by offering a slightly higher commission rate. Even a commission rate that is 2% higher than the industry standard may be enough to develop loyalty amongst your distribution partners.
Now that you know how much you need to pay the agents who resell your tour and activity products, it’s time to start improving your distribution strategy. To learn more about creating an effective distribution plan and to discover how to partner with new agents, download the Rezdy distribution ebook today.