As the old saying goes, the more the merrier. This adage can be applied to your distribution strategy. As a tour and activity provider, you need agents to resell your tours and increase your bookings. You should increase your distribution partners in order to maximize your profits and decrease your dependency on one or two agents who consistently book your tours.
Why Do You Need More Distribution Partners?
- When you have more agents selling your products, you have access to a diverse range of customers. Some agents have access to markets that you would not otherwise have access to, and they will help book your tours in advance. Other agents specialize in last-minute bookings, and they will help fill up the tours that you have scheduled and allow you to enjoy maximum profits.
- The more agents that you partner with, the more reliable your income will become. If you only sell your tours through one or two agents, and you lose one of those agents, your business will suffer. By establishing a network of distributors, you will have a more reliable and steady stream of income through your tour and activity company.
- When you work with a large set of distribution partners, you can compare commission rates between the different parties. If you have several partners earning a higher commission, and then you find a few distributors who will work at a lower commission, you can use that to leverage a better rate for your tours. There is no need to give agents a higher commission rate when you have other distributors who will book your tours for less.
- You will increase demand for your business, as agents will be competing with one another in order to book your tours and activities. Agents need to book your tours and activities in order to earn their commission. When there are many distributors reselling your tours, they know they need to compete with others in order to secure a spot for their customers who are interested in booking. Agents may willingly lower their commission rates in order to get access to your tours, which helps ensure that reservations are made and your tours are full on a daily basis.
Ultimately, increasing your distribution partners will give you more power over the commission rates that you set. This allows you to establish a commission rate that motivates agents to book your tours and activities, but also allows you to enjoy a higher profit margin. A well-designed distribution strategy with various channels results in a healthier business.
The Rezdy Marketplace allows you to set your prices as well as your commission rates for each distributor, and it keeps track of your real-time availability.