How Much Commission Should Tour Operators Give Tour Agents for Bookings?
Inbound Tour Operators (ITOs): A Powerful Distribution Channel
agent, distribution, inbound tour operator, tour operator, tourism business strategyInbound Tour Operators (ITOs) are one of the most important distribution channels available to small tour or activity businesses.
Here’s what you need to know about how you can work with them.
What is the role of an ITO?
Before we get too carried away, let’s recap who these guys are and how they work.
ITOs – also known as ‘ground operators’ or ‘destination management companies‘ – are the local experts in a certain destination’s tourism products. They pick out ‘export-ready’ products that they promote overseas through other distributors.
Anyone from a travel agent to a meeting planner will come to an ITO with certain specifications. The ITO then plans the itinerary, selects the tourism products to include, and coordinates all reservations for accommodation, tours, transport and meals.
How can I get an ITO to consider my tours?
Because they have access to overseas markets, ITOs can be an extremely reliable source of bookings for niche tour operators. The hard part is making the cut so you get listed as an export-ready tourism product.
Ask yourself:
- Do you have an established product ie. one that has been operating successfully for at least 1 year?
- Is your product in demand in the market that the ITO targets?
- Are you offering good value for money?
- Is your product consistently delivered with a high level of quality and customer service?
- Does your product provide a unique experience?
- Do you have regular availability (daily tours or on at least 3 days per week, departing with a minimum of 2 people)
If you can answer ‘yes’ to the above questions, then you’re in good shape to present your business to an ITO for consideration.
What do ITOs expect from you?
Be prepared with the following:
- An inbound commission rate sheet with concise terms and conditions. Know how the tourism distribution system works, especially when it comes to the commissions ITOs require.
- A plan for how you will respond to bookings, including when and how they will get paid (they expect a response to a booking enquiry within 24 hours – but this should not be a problem if your booking system allows them to log in and make a real-time booking).
- Marketing collateral such as brochures and images. If they operate in a non-English market, then it would be smart to provide collateral in that language.
You should also detail how you will handle complaints. Even though it’s not something that comes up often, it will show you have thought everything through and are well-prepared.
How can you form relationships with ITOs?
If you don’t know where to find them, then start going to networking events. They can be industry events or trade workshops.
Once you have their details, then give them a sales call every few months. Keep them clued in on any changes you’ve made to your products. You may want to offer a ‘famil‘ or ‘familiarisation visit’, where they can test out the product for themselves.
Keeping the relationship strong is another task to factor in. You must be professional and reliable. Always respond quickly when they request information from you and keep true to the deadlines that you promise – especially when it comes to paying them!
If you struggle with agent booking management, take a free trial of Rezdy. It will make life a lot easier for both you and your agents.
You can also download our free ebook to keep learning about distributing your tourism products:
Inbound Tour Operators (ITOs) are one of the most important distribution channels available to small tour or activity businesses.
Here’s what you need to know about how you can work with them.
What is the role of an ITO?
Before we get too carried away, let’s recap who these guys are and how they work.
ITOs – also known as ‘ground operators’ or ‘destination management companies‘ – are the local experts in a certain destination’s tourism products. They pick out ‘export-ready’ products that they promote overseas through other distributors.
Anyone from a travel agent to a meeting planner will come to an ITO with certain specifications. The ITO then plans the itinerary, selects the tourism products to include, and coordinates all reservations for accommodation, tours, transport and meals.
How can I get an ITO to consider my tours?
Because they have access to overseas markets, ITOs can be an extremely reliable source of bookings for niche tour operators. The hard part is making the cut so you get listed as an export-ready tourism product.
Ask yourself:
- Do you have an established product ie. one that has been operating successfully for at least 1 year?
- Is your product in demand in the market that the ITO targets?
- Are you offering good value for money?
- Is your product consistently delivered with a high level of quality and customer service?
- Does your product provide a unique experience?
- Do you have regular availability (daily tours or on at least 3 days per week, departing with a minimum of 2 people)
If you can answer ‘yes’ to the above questions, then you’re in good shape to present your business to an ITO for consideration.
What do ITOs expect from you?
Be prepared with the following:
- An inbound commission rate sheet with concise terms and conditions. Know how the tourism distribution system works, especially when it comes to the commissions ITOs require.
- A plan for how you will respond to bookings, including when and how they will get paid (they expect a response to a booking enquiry within 24 hours – but this should not be a problem if your booking system allows them to log in and make a real-time booking).
- Marketing collateral such as brochures and images. If they operate in a non-English market, then it would be smart to provide collateral in that language.
You should also detail how you will handle complaints. Even though it’s not something that comes up often, it will show you have thought everything through and are well-prepared.
How can you form relationships with ITOs?
If you don’t know where to find them, then start going to networking events. They can be industry events or trade workshops.
Once you have their details, then give them a sales call every few months. Keep them clued in on any changes you’ve made to your products. You may want to offer a ‘famil‘ or ‘familiarisation visit’, where they can test out the product for themselves.
Keeping the relationship strong is another task to factor in. You must be professional and reliable. Always respond quickly when they request information from you and keep true to the deadlines that you promise – especially when it comes to paying them!
If you struggle with agent booking management, take a free trial of Rezdy. It will make life a lot easier for both you and your agents.
You can also download our free ebook to keep learning about distributing your tourism products:
3 Comments
Great information sharing about inbound tours operators. Thanks for sharing with us.
how do I become a agent from home ?
Hi Karen,
Have a look at our agent page, https://www.rezdy.com/agents. It is free to sign up for an agent account. Have a look at the software, once signed up. You can embed products with a private rate to any website.