A successful distribution strategy for tour and activity businesses requires mixing up your sales channels so you’re not overly dependent on any one source for bookings.
We examine the dangers of being overly dependent on any one distribution channel, in relation to the top 5 being used by tour operators.
If you rely solely on direct website bookings, you are highly dependent on your search engine ranking and any other place that you’re listed. If you lose your place in your listing (eg. Google makes a change that affects your search rank), there goes the majority of your bookings!
Many travelers head to OTAs to book in their tours and activities because OTAs guarantee a high standard of customer service.
If you are too dependent on any one OTA, they can easily increase their commission rate. You won’t be able to say no, because if they stop reselling you, you lose a significant percentage of your bookings.
Many travelers head to Visitor Information Centres to look for recommendations.
Depending too much on your local VIC means that you only get bookings when they’re in they’re in the office. When they’re closed for any reason, you lose out.
There are a heap of stats around why you should be leveraging online reviews for your business.
We’re not here to contest the idea that you should spend time and energy on building positive reviews – we’re just saying you shouldn’t be overly reliant on those sites as a referral source of bookings.
Why? A couple bad reviews can not only scare potential customers away, but they push you down in your rank, meaning less visibility for your business.
Concierges often act as the go-to person at a traveler’s hotel. Because of this, they have a lot of power to recommend your business, making bookings on behalf of hotel guests.
If you are too dependent on concierges, your bookings slow down when they aren’t at work. They are also heavily driven by commission, so a competitor could easily offer them that bit more, causing them to stop reselling you.
Tour operators in 73 countries use Rezdy daily to sell thousands of products in real-time on their website and through thousands of distribution channels. Take a free trial to see how it works.
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