Imagine if you could be advertised around the world, and only pay once you received a sale?
The Tourism distribution system, is an effective way to market your product, as a way to only pay for marketing once you receive a sale. Imagine the opportunity to have your product promoted through marketing campaigns internationally where you only pay for the service, once you receive a sale.
Tourism operators have the opportunity to collaborate with online travel agents, wholesalers and inbound tour operators who develop itineraries for product distribution for both the Free and Independent (FIT), and Group Travel Market – and it is a great way for you to grow your brand.
Operators are often confused as to why they would pay someone else a commission for the sale of their product, however it is one of the most secure forms of marketing. Pricing your product to ensure that 25% commission is able to be offered in the pricing is important, as it will allow you to access all levels of distribution.
- Online Travel Agents such as Booking.com, Hotels Combined and Viator can expect commission rates between 10% – 15%.
- Wholesalers and Tour Operators such as AAT Kings, Journey Beyond or Holidays of Australia can expect commission levels around 20%.
- Inbound Tour Operators such as Flight Centre, Helloworld and The Tailor can expect commission rates between 25% – 30%.
The level of commission requested will change on a case by case basis – and generally this will determine the marketing opportunities provided for your product.