If you’re the only tour company that offers hot air balloon rides in your local area, then you won’t have to worry much about direct competition. You might think you don’t need an extensive distribution channel like online travel agents and resellers. However, the truth is that allowing travel agents to resell your tours and activities can bring you more benefits than simply taking in bookings for you.
The highly competitive travel industry is not for the faint of heart. Reseller agents know this and they’re highly trained and equipped for the job. They tap into their creative and logical side to help promote, book and manage incredible travel experiences for their customers. They act as a salesperson, marketer, customer service rep, and sometimes even an accountant.
Basically, agents wear a lot of hats for your business. But how do you choose the right agents to partner with? Here are some key characteristics to look for.
Characteristics of a good reseller agent
- Can sell underwater
A good agent can sell in high volume on a regular basis. No ifs or buts. Obviously, you may have to factor different seasons, but in general, they can consistently provide you with customers.
If you have agents that sell multiple tours regularly, then you should consider making them your ‘preferred partners’ and give them exclusive reselling rights for your tours and activity products. This will motivate them even more, as they will feel valued and trusted.
- Access to customers you wouldn’t otherwise reach
Competent agents have a fully incremental distribution channel. Meaning, they have an extensive distribution channel that will allow them to sell your products to people you wouldn’t normally find in your usual marketing campaigns.
This could be an agent with exclusive access to student travellers from another region. Obviously, you wouldn’t otherwise be able to reach to this potential market, unless you had an existing connection.
- Reasonable commission rate
Resellers make money out of commissions, which is why they work hard to sell your bookings. The typical commission is 10% to 15%. Some ask for as high as 20%. Of course, the lower it is, the better it is for your business. You want your ROI (return on investment) to be high enough to earn profits.
- Accepts last-minute bookings
Last-minute bookings may be tricky to pull-off, but when done right, they can generate a lot of opportunities for your business. It can help fill up those empty seats for low seasons and ensure sessions or capacity is full.
- Promotes your business
Reseller agents don’t just receive bookings, they also wear different hats for your business. One of the most important hats is the marketer’s hat. A good reseller will help advertise and market your tours and products. They share your promos on their social media, feature your brand in their website, list your bookings in deal sites, include your products in their email marketing campaigns, and more. This will actually help you save money in marketing costs.
If you haven’t worked with travel agents yet, now is a great time to get started. You could potentially tap into a market that you don’t have access to on your own, provided that you choose the right agent.
