By Taz Bareham — 7 Feb 2019
Updated 21 May 2021 – As you build your distribution network and perfect your online distribution strategy, you will want to make sure that you are working with travel wholesalers. Wholesalers can be a powerful partner in selling your tours and activities, but you need to strike the balance between motivating them to work with you while also preserving your own profit margins.
These tips will help you develop relationships with the top wholesalers in the industry:
If you want to target wholesalers as a distribution partner, then you need to know exactly what they do within the travel industry. The role of the wholesaler is unique, in the sense that they don’t work directly with travelers in the marketplace. Rather, a wholesaler will sell your tour products to retail travel agents. In addition, they work with inbound tour operators to manage the specific details of itineraries. Essentially, wholesalers help create all-inclusive packages for travelers to book. Given the fact that more and more travelers are searching for comprehensive travel packages that include all of their experiences, wholesalers will be a valuable distribution channel for you to focus on.
Wholesalers are frequently searching for tours and activities that are both unique and authentic. These are the types of experiences that travelers are craving, and they want to be able to customize the itineraries so that they are appealing to retail travel agents. When working with travel wholesalers, use online marketing techniques to showcase your products. Be sure to emphasize any value-added features that you include with the booking rate.
Given the nature of their job, wholesalers will almost exclusively work with tour and activity operators who offer online booking. They are not going to have the time available to make phone calls or wait for e-mail responses. To attract the best wholesalers in the industry, you should implement an online booking system that simplifies the booking process. In addition, your online booking system should allow them to automatically earn their commission. This is, understandably, a priority of wholesalers.
It’s imperative that you set consistent rates for your tours and activities, regardless of who is selling or booking them. For example, you can’t charge OTAs (online travel agents) one rate for your tours while switching up the prices on your website. When working with wholesalers, it is important to note that the commission rate may vary from one wholesaler to another. This can have an impact on your profit margins, but it is beneficial to work with a diverse range of distribution agents.
Rezdy allows you to create partnerships with the best distribution agents in the industry, including wholesalers. This is due to the fact that Rezdy offers its customers an innovative channel manager that simplifies the process and ensures that all distribution partners have access to your live rates and availability.
If you enjoyed this article – Working with travel wholesalers: A guide for tours & activities – then follow the Rezdy blog. There are a lot of marketing tools and resources designed with businesses like yours in mind.
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