By Taz Bareham — 14 May 2017
Partnering with an online travel agent (OTA) is necessary in order to appeal to a broad range of travelers from many destinations across the globe. An OTA has the power to outspend just about any independent supplier, including tour and activity operators, and it’s difficult to compete with their expansive marketing strategies. Instead of trying to compete with OTAs, your tour and activity business should partner with them instead.
Of course, this partnership comes with a price. Here’s what you need to know about what it costs to work with an OTA:
There are several well-known OTAs that you may want to consider partnering with:
Most OTAs will have commission rates that they require in order to create a partnership with them. You will want to verify the commission rate that is expected as part of the agreement. It’s important to understand that paying these commission rates is a worthwhile investment in your business, considering the exposure that your brand will receive through the OTAs. With an effective online booking system that includes a channel manager, you can automate the commission payment process which is beneficial for you as well as your OTA partners.
OTAs will become an important component in your overall distribution strategy. It allows you to boost your brand to the global level while attracting travelers from around the world that you may not otherwise have had access to. In order to learn more about developing an effective distribution strategy and partnering with the right types of agents in the industry, be sure to download the Rezdy online distribution ebook today.
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