Insights into Tourism Export Channel Strategies
Discover valuable insights about tourism export strategies, distribution channels, commission structures, and key market data including booking patterns, indirect booking percentages, and sources of business. Explore the significance of working with international agents, utilizing online platforms, and implementing effective reporting systems to enhance market presence and track performance.
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Presentation Transcript
Distribution Channel
Experts in Tourism Export Trade channel is big! More than 60% of pax to NZ book indirect (top 8 excluding AU is 73%) source IATA/TNZ data Advance Purchase months from booking to travel date Indirect Coverage % of market pax booked through Travel Agents and OTAs Market Australia 49% 1.83 China 69% 1.53 USA 69% 2.68 UK 81% 4.11 Germany 85% 3.79 Japan 68% 1.26 India 75% 1.33 Argentina 61% 4.01 Brazil 68% 3.12 Global 57% 2.25
Sources of business International Wholesaler Domestic Wholesaler Inbound Tour Operator Consumer Direct Travelers To Your Product Online Travel Agent Social Media Apps
Experts in Tourism Export Distribution Channel
Experts in Tourism Export Commission structure example Overseas visitor Overseas retail agent Overseas wholesaler NZ Inbound Tour Operator 5-10% commission 20% Nett ITO $88 $6 25% Nett ITO $83 $5 30% Nett ITO $77 $11 30% Nett ITO $77 $6 NZ Product RRP$110 Revenue RRP$110 Revenue RRP $110 Revenue RRP $110 Revenue 10% commission 10% Nett retail $99 $11 10% Nett retail $99 $11 10% Nett retail $99 $11 10% Nett retail $99 $11 10-15% commission 15% Nett wholesale $94 $5 20% Nett wholesale $88 $11 20% Nett wholesale $88 $11 25% Nett wholesale $83 $16 Pay 20-30% commission RRP $110 $83 RRP $110 $83 RRP $110 $77 RRP $110 $77 Work out your lowest acceptable nett rate and work up the distribution chain from there
WAIT! WHO THE F#@% ARE THESE GUYS!!!
YES YOUR IBO COULD BE & IS USING THESE YES YOUR IBO COULD BE & IS USING THESE Start out International agents wanting to access product in growing markets may go to an OTA first. Take Trip Advisor for example 300 million users, key products in multiple countries, cities, already rated and with allocation KEEP A REPORTING SYSTEM/CRM even if it s a spreadsheet. Have IT track traffic to your site is social working? If you don t know ASK!
YOU NEED TO SEE IT 3 TIMES! YOU NEED TO SEE IT 3 TIMES!
Role of the Inbound Operator
For clients overseas: Research/recommend products to encourage new offerings Secure allotments for ease of booking and confirmation some wholesalers will not sell a product unless there is guaranteed availability Provide a tariff (all info in one place) Provide product updates so consultants have the confidence and knowledge to sell NZ Assist to organise client famils Marketing partnerships to promote NZ, your region and your product Opening new markets ITOs are in-market even BEFORE TNZ They will work with AirNZ Some have overseas offices to convert & train A one-stop-shop for all NZ product - including 24/7 support - one payment - itinerary narrative NZ Story Proactively seek new wholesalers who are not (yet!) selling NZ Key support for both the traveller and the product provider in NZ.
TIPS ON WORKING WITH YOUR ITO/RTO
Engagements: o Plan for sales calls for ITO generally in the winter months as they have more time to see suppliers. o For RTO it should be at least quarterly and this can include updates/social events/shows. o Visiting with some goodies like morning tea/promo product is well received especially when doing product training with the team o If there is time to host them at your location do that! If appropriate make time for a drink! o Do your research and know your particular client, their market, their main demographics and where they are heading. o Actually give them sales tips and examples for their particular market and direction. Including how you can work with the competition o For example honeymoon customers from India could do a SkyWalk at Sunset while in AKL then when in QT do a tandem Bungy or Swing. Fully commissionable combo rates available for that so they can give the client a discount, obtain full commission, cover both islands, give a mix of product/experience and all in one booking for ease. WHAT DO YOU HAVE that is special or can be combined? o Make your training presentation as interesting/interactive as possible so its fun and memorable o Provide updated content no matter how small even an image change could make a difference. Get your ITO partners to become your #1 advocate!
Support your RTO/ITO famils/advertising: o Invest in building a solid foundation with your ITO/RTOs before investing to attend other trade events o Provide on stand/travel activity giveaways and support if possible especially in markets you can t always be in or don t have the luxury of travelling to yourself. YOU need to make this offer! o Seeing and experiencing a product is very effective. o Sign up to the media and famil programs with TNZ/RTO/IBO o If its not through your NTO/RTO/ITO, do your own vetting so you know the background of the agent, which market they work in, and whether it is worth your time & investment. o Help with brochure contribution or other marketing activity where possible this doesn t have to be $$ - it can affect your visibility offshore. E-communication/updates: o Offering a call to action like a special or prize o Focus on key NEW updates that are relevant for an ITO as they receive many newsletters from hundreds of suppliers Pricing and T&Cs: o Ensure that you have the right pricing structure for each of your sales channels to avoid rate parity issues or if you have set pricing update your support. o Ensure that you have workable cancellation/booking T&Cs that is realistic for the markets you are targeting Get your ITO partners to become your #1 advocate!
Media/International Agent TNZ RTO Operators Media/International Agent Inbound Operator TNZ/RTO Operators Media/International Agent Inbound Operator Operators
Experts in Tourism Export Product Development Packaging: o Combining 2-3 complimentary products/services to increase your value proposition and offering o The combined higher commission amount will also attract more interest Product quality: o Your products are being compared internationally o Little things can go a long way e.g. cleanliness of your vehicle, a warm greeting, etc. Stand in your visitors shoes what do you expect is what you should be delivering Personalised offering: o Tailor your product and service to the client and be aware of different needs by each of your international market. o More and more visitors are seeking authentic and unique experiences Visitors are now more conscious of your sustainability efforts so highlight these! Media o Use media as a way to highlight and qualify your offering Hosted Famil o Who do you want selling your product? Get them all out there, make it good! Identify the key sales channels for your product and have a strategy for each Get your market segment mix right, the price right and work with partners you know and trust!
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