Before investing time and money in targeting specific markets, you need to make sure your tourism product or service is trade ready.
This page serves as a guide. You can use it to identify whether you have the right policies and processes in place to work with and sell through an intermediary channel. This will enable you to attract the right type of visitor at the right time for your business.
Becoming trade ready is a process that takes time and commitment. You may need to refine your product or experience before approaching this route to market.
Start by asking yourself the following key questions.
If you can answer "yes" to some or even all these questions, you are on your way to becoming trade ready.
If not, we encourage you to read on for information on how to prepare for working with the trade.
have you considered the travel styles, language, and cultural differences of your visitors?
do you understand the needs of those from different visitor markets?
To work with travel distributors, you need to factor commissions into your pricing. The commission is the fee paid to the tour operator, wholesaler, online, or retail travel agent to market, distribute, and sell your product. Note that it is only paid once a sale has been made.
Depending on the travel distribution route you select, the commission rate could vary from 10% - 30%. It should be incorporated into the pricing model for your business.
By providing the correct figures to each level of the distribution system, you can protect your rates. But it’s important you understand the difference between net and gross (retail) rates first.
Rates should be clearly marked as either gross (retail) or net. The gross or retail rate of a product is the amount that the consumer pays and should be consistent across all distribution channels.
For example, a customer should pay the same price if they book direct, via an international travel agent or via the internet.
You can calculate your gross rate by taking your net rate and adding the commission.
It's important to keep in mind that consumers will not buy a product from an intermediary if they know they can buy it directly from you at a reduced price.
And intermediaries will only use their distribution networks to promote your product if they know the consumer is going to buy from them.
An effective pitch is about starting an engaging conversation. It should be a short, concise summary of your product.
Try to explain how your business or product will benefit the distributors’ clients. Also try to appeal to their interests and inspire them to choose your business over your competitors.
Tailor your pitch to your listener and don’t assume they know about your business/product. Some travel distributors might only have limited knowledge of Scotland.
Provide a brief overview of your business. Don’t forget to mention your location and any points of interest in close proximity.
For example, what's the distance to a key airport, a particular visitor attraction, and so on.
Provide an overview of your bookable product and include any trade-exclusive experiences.
For example, do you have any add-ons you can offer?
Highlight your unique selling points, the quality of your product, and any sustainable initiatives you might have.
For example, do you have something that makes you stand out from your competitors? Are you part of our Quality Assurance scheme? Or are you part of a sustainable tourism scheme such as Green Tourism, Green Key, Earth Check, or other?
Outline how your product is delivered and priced.
For example, are you already working with the travel trade or destination management companies?
Summarise the benefits of working with you (based on what you now know about your listener’s needs).
Don't fall for the trap that your intermediary might be telling you everything you need to know. Be inquisitive and follow-up with tailored information to make yourself stand out.
For example, when the intermediary is looking at contracting, ask some of the following questions:
If this leads to a conversation in which you can show how you can fulfill the intermediaries needs, you might be one step closer to sealing the deal.
Have you considered working together with other tourism businesses?
Joining forces to promote a destination or a newly developed product can be hugely beneficial to you and the travel trade.
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Once a business relationship has been established, it is imperative you maximise the benefits. The volume of business might initially be on the low side, but this could increase significantly over time.
The following are some helpful tips for you to maximise your benefits from working with the travel trade:
Please be mindful of the fact that it can take a number of years to get into holiday programmes with some of the intermediaries.
But when you do, their distribution networks can be impressive and accelerate your business growth.