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Working with the Travel Trade An introduction to working with the Travel Trade. Travel Trade definition The Travel Trade is a collective term for intermediaries such as tour operators, travel agents and wholesalers who can facilitate business between you, the Wales tourism industry (i.e. accommodation providers, attractions and transport providers) and the end user i.e. the customers/consumers. The Travel Trade are basically buyers and sellers of your product that then sell tours, holidays and experiences direct to consumers or to other buyers. For many international holidaymakers the Travel Trade plays a crucial role in providing the information potential customers need to plan a trip and can even play a huge role in influencing a holiday destination. Relevance. The importance of the Travel Trade Our 2019 Travel Trade research states: Therefore, as well as Visit Wales The key aims of the activities marketing directly to consumers undertaken by the Visit Wales — The overall value of business to we also have a team dedicated to Travel Trade team are: Wales from operators in the research undertake marketing to, and working sample providing bed night data is — to increase the Wales products and with, the Travel Trade. This is also approximately £35.8m. services included in tours and sometimes referred to as working — Operators are introducing new tours programmes sold by agents and Business to Business or B2B. or programmes as a result of Visit operators. Wales’ interaction and approximately — to improve the distribution network 174 new tours/programmes have been by working with wholesalers and tour generated in 2019. operators. — 57% of operators already including — to increase the awareness of Wales Wales are interested in developing/ as a tourist destination in order to selling more Wales products. encourage the Travel Trade to include Wales over other destinations in a competitive market. Engagement. Terminology. Who can work with the New terms you may hear when working with the Travel Trade? Travel Trade… Anyone! As long as you are able to offer Group v FIT Pricing rates to operators. It is a common myth FIT At this point you may now be thinking that only accommodation providers This can mean ‘Fully Independent that it is going to cost you to work with with a larger number of rooms, or Tour’ or ‘Flexible Independent the Travel Trade as you need to offer attractions that caters for large groups Traveller’ and consists of any type of commissions and net/special rates. are suitable for the Travel Trade. traveller such as individuals, couples, In order for the Travel Trade to be Online travel businesses are families etc. who have booked via an successful the companies selling your increasingly taking larger shares of the agent but are not travelling as part of a product or service on your behalf also market, for example bespoke packages group. They require the assistance of need to be able to make a profit. In most on Travelzoo, Virgin Experience Days the Travel Trade to plan and book their cases you only pay commission or offer and Groupon are platforms that any holiday/accommodation/things to a discounted price when the sale is business willing to work with the do based on their knowledge and made. It provides an opportunity for market can take advantage of when expertise. This is a growing trend in greater promotional reach of your working with the Travel Trade. travel for all markets, especially product at little extra cost. with online bookings increasing. Travel Trade Commission/Net Rates Operators will need: FIT or The commission is the fee paid to the commissionable rates because they can intermediary who has worked to generate a huge amount of business market, distribute and sell your product throughout the year, however the or service. This is a fee that covers bookings need to be flexible as to when their function and service. It is often customers choose to book rather than determined as a percentage of the restricted to a particular day, week gross rate. or month. Suitable Wales Product: Any product Group Rates wishing to increase their bookings These are the rates that you offer to an and willing to offer rates can work operator who brings a group to your with FIT travellers. product or service and it will generally be the net rate (rate before they are Groups marked up with an additional margin Groups means that the consumers will for profit for sale to the public). be travelling in a group, they may know each other beforehand (e.g. a special FIT Rates interest club) or may be individuals/ When arranging an FIT tour, operators couples or families who book on to a will also ask for a net rate, remember pre-arranged Travel Trade package/ that the booking may only be for an tour with a full itinerary already individual, couple or family but over planned out. The group will travel the year the operator may place many together and stay in the same hotels, bookings at your venue. often visit the same attractions or do the same activities. The average group Time length of pricing rate starts at either 10 or 15 people. Operators will be discussing pricing for their tours/holidays normally about Operators will need: group rates 2 years in advance and they will be depending on the size of the group calculating their tour prices and you as a business are able to accordingly. This should be considered negotiate this. in your pricing strategy because Suitable Wales Product: depending on increases in hotel rates/entrance fees the size of the group some products and will impact on their profit margins. services will not be able to cater for the groups market. When marketing to the Travel Trade it is always useful to state the group sizes you are able to cater for. The Travel Trade is just another channel... Benefits. Organisation. Benefits for you and your business to work with the Travel Trade Structures Travel Trade 1. Wider distribution 4. Pay only for results — Tour Operators – build a package of Sometimes it is easy to think that the In order for the Travel Trade to be all the elements that make up a Travel Trade are trying to take your successful the companies selling your holiday or a tour and often includes a business. This is another myth, the product or service also need to be able variety of companies including coach Travel Trade is just another channel to to make a profit. In most cases you only operators, accommodation and help you reach new business. In most pay commission or offer a discounted activities at a destination. E.g. TUI. cases you won’t be asked for an up- price when the sale is made. It provides — Online Travel Agents – work in the front fee. You will instead be asked an opportunity for greater promotional same way as a tour operator however to provide good net rates/discounted reach of your product at little extra are purely online. E.g. Expedia, prices on which operators can add cost. booking.com, Viator. their commission to. — Travel Agents – organise personal 5. Form long lasting relationships travel and accommodation for 2. New customers reached The trade gets to know and trust you travellers. They provide the services It’s sometimes difficult to reach markets to deliver a quality and consistent on behalf of suppliers such as and working with the trade means product. They will continue to promote airlines, hotels, railways and package promoting your business in places that and sell your product year after year, tour operators. E.g. Trailfinders. you’ve found hard to reach due to or until market demand suggests — Wholesalers – develop and supply administration and marketing capacity otherwise. inclusive tour packages and or lack of market awareness. accommodation through retail travel 6. Less hassle all round! agents who sell on to consumers. 3. Boost your bookings The trade are the conduit between you They often sell to other elements of If you are already always at capacity and the consumer up until the time the the Travel Trade such as tour and through direct bookings then we are guest arrives at your door. The trade coach operators and not directly thrilled. If not you may think that deals with various general information to consumers. customers will come to you direct and enquiries, financial transactions and — Inbound Tour Operators – you don’t need to work with the Travel any problems the client might Operators that put together tours Trade to gain extra bookings. New encounter. They often also have for international operators (many customers and certainly international the ability to sell all of the other are represented by UKinbound, customers will very often book via an components of the traveller’s holiday. the Association for Inbound Tour agent or operator first. By having Operators). pricing levels which allow the trade — Ground Handlers – makes to build in commission or discounted arrangements for travellers from rates, you can generate additional sales overseas from the moment they to increase visitor figures or fill spare arrive in the UK until the moment capacity. they leave. Their work involves managing the visitor experience whilst international tourists are in the country. — Destination Management Companies (DMC) – companies with specialist local knowledge who handles all bookings and arrangements for tours, usually tailor-made. www.visitbritain.org/understanding- travel-trade ...to help you reach new business. What next? How you can get involved and support Visit Wales working with the Travel Trade Get in touch with the team on: Support us when we bring in tour [email protected] and make operators/agents on familiarisation/ us aware of your product or service.
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