Direct bookings are great for your business, as they prove that your online marketing strategy is working and it also allows you to increase your profits per customer. However, agents are a necessary part of distributing your tours and activities to motivated travelers. They work for you, and resell your products, ultimately increasing your bookings overall and diversifying your business. It’s an added expense, but they deserve the commissions that they earn. Here’s why:

Agents Save You Time and Money on Marketing.

Those who resell your products will promote your business for you. If you implement a channel manager into your business operations, you will have access to an endless number of agents who are interested in packaging your tours and activities and marketing them to your customers. This minimizes the time that you have to spend on marketing to audiences that can be difficult to reach, and it allows you to focus more on the services that you provide. The time and money that you save on marketing is well worth the commission that you will pay to the agents who help you increase your bookings.

Agents Minimize Your Risk and Increase Your Control Over Your ROI.

By allowing agents to resell your products, you enjoy minimal risks when it comes to your investment. This is due to the fact that you will establish your own commission rates, and that you will be able to pay a commission that still allows you to make a profit on the booking. In addition, you only pay a commission when a booking has been generated. Other online marketing techniques force you pay for the possibility of a new customer, rather than only paying when a conversion has occurred. For example, with Google AdWords, you will pay-per-click, but not all of the people who click on your site will book your products. Through this technique, you are likely wasting valuable resources on visitors who may never have intended to book your products. 

Agents Improve Your Incremental Growth

Different agents work with different target audiences. Many of these groups might be difficult for you to reach on your own. By diversifying your business and improving your distribution strategy, you will be able to reach incremental sales channels through the agents that you connect with. An incremental channel is one that you would not otherwise have been able to access, and they are critical to growing your tour company. The more agents that you work with, the more incremental growth you will have within your business. Your investment in their commission plays a pivotal role in the future success of your tour and activity company.

It’s important to set fair yet competitive commission rates for the agents who resell your tours and activities. You might want to consider choosing net or percentage commission for your products. Ultimately, you need to set the commission rates that allow you to be profitable but also encourage agents to book your products for their customers.





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Simon Lenoir, Founder and CEO of Rezdy Online Booking Software
About Simon Lenoir

Simon has over 15 years’ experience as an IT professional. He also has extensive experience in the travel industry from being an around-the-world traveller and managing a dive centre in Southeast Asia for over 3 years. Simon is now dedicated to providing the best online booking solution for tours and activities operators; he is the brains behind Rezdy.Outside office hours Simon is a true activity addict – mountain biking, sailing, swimming, beach volleyball – just to name a few. But most of all he loves diving in Australian waters.

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Why Agents Deserve Commission for Selling Your Tours or Activities

,

Direct bookings are great for your business, as they prove that your online marketing strategy is working and it also allows you to increase your profits per customer. However, agents are a necessary part of distributing your tours and activities to motivated travelers. They work for you, and resell your products, ultimately increasing your bookings overall and diversifying your business. It’s an added expense, but they deserve the commissions that they earn. Here’s why:

Agents Save You Time and Money on Marketing.

Those who resell your products will promote your business for you. If you implement a channel manager into your business operations, you will have access to an endless number of agents who are interested in packaging your tours and activities and marketing them to your customers. This minimizes the time that you have to spend on marketing to audiences that can be difficult to reach, and it allows you to focus more on the services that you provide. The time and money that you save on marketing is well worth the commission that you will pay to the agents who help you increase your bookings.

Agents Minimize Your Risk and Increase Your Control Over Your ROI.

By allowing agents to resell your products, you enjoy minimal risks when it comes to your investment. This is due to the fact that you will establish your own commission rates, and that you will be able to pay a commission that still allows you to make a profit on the booking. In addition, you only pay a commission when a booking has been generated. Other online marketing techniques force you pay for the possibility of a new customer, rather than only paying when a conversion has occurred. For example, with Google AdWords, you will pay-per-click, but not all of the people who click on your site will book your products. Through this technique, you are likely wasting valuable resources on visitors who may never have intended to book your products. 

Agents Improve Your Incremental Growth

Different agents work with different target audiences. Many of these groups might be difficult for you to reach on your own. By diversifying your business and improving your distribution strategy, you will be able to reach incremental sales channels through the agents that you connect with. An incremental channel is one that you would not otherwise have been able to access, and they are critical to growing your tour company. The more agents that you work with, the more incremental growth you will have within your business. Your investment in their commission plays a pivotal role in the future success of your tour and activity company.

It’s important to set fair yet competitive commission rates for the agents who resell your tours and activities. You might want to consider choosing net or percentage commission for your products. Ultimately, you need to set the commission rates that allow you to be profitable but also encourage agents to book your products for their customers.





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