Architectural Commission Report HILLS I BEVERLY Project Agent
#2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10%...
Transcript of #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10%...
![Page 1: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/1.jpg)
Dené Sinclair
Director of Marketing
Aboriginal Tourism Association of Canada
1Joe Volk
Executive Director
CITAP
#2016IATC
![Page 2: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/2.jpg)
The Travel Trade is a network of businesses whose job is to distribute and sell your travel experiences to other buyers and /or consumers Travel Trade is a collective term for tour operators, receptive tour operators and travel agents
2
![Page 3: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/3.jpg)
• Consumer purchasing behaviour differs by market
• Add to your own market diversification
• Access to new distribution channels
• Wider reach = get your product in front of more customers
• Easier consumer access to your experience and product
Why should you work with the travel trade?
3
![Page 4: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/4.jpg)
Why should you work with the travel trade?
• Maximize your reach
• Promotion in markets you may not be able to reach
• Longer Booking Lead Time = Better Planning
• Minimized impact of changes in the regional or a single
international market
• Marketing dollars you pay only when the trip sells
4
![Page 5: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/5.jpg)
What is the travel trade?
Tour Operators Come In All Shapes And Sizes
5
![Page 6: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/6.jpg)
What is the travel trade?
Receptive Tour Operators
RTOs may specialize in particular markets:
Japan
Global
China
6
![Page 7: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/7.jpg)
What is the travel trade?
• Traditional Travel Agents sell in storefront locations, a convenient place for travellers to buy holidays
• They buy from Receptive Tour Operators, Tour Operators or
directly from Suppliers
Traditional & Online Travel Agencies
![Page 8: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/8.jpg)
How to get started with the Travel Trade
8
Although there can be immediate results, the typical sales cycle from initial introductions to product being available through the trade to consumers takes an average of three years.
3 Years Out • Initial meetings
between tour operator and destination (or ATAC)
• Initial product pitch
2 Years Out • Supplier meets
company • Sales meetings
with tour operators • Further product
explanations, prices, dates
1 Year out • Partner to host
buyer on FAM tour
• Contracts signed
FINALLY! • Product to market
![Page 9: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/9.jpg)
How does Travel Distribution work?
Direct to Consumer • Usually only over a small geographic radius due to
high marketing costs (Manitoba focuses on Primary Access Markets 500 mi radius)
• Fully independent travellers (FIT)
• Up front marketing costs
Tourism Product (You) Consumers
9
![Page 10: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/10.jpg)
How does Travel Distribution work?
Receptive Tour Operator (RTO) > Tour Operator > Travel Agent > Consumer
• International consumers
• Receptive Tour Operators represent your product to resellers (tour
operators and travel agencies) around the world
• Benefits of getting a RTO “stamp of approval”
Tourism Product (You)
Receptive Tour Operators
Travel Agent Networks Consumers
Tour Operators
Travel Agent Networks
Consumers
Consumers
Niche Resellers Consumers
Niche Resellers Consumers 10
![Page 11: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/11.jpg)
Commissions and Pricing
11
Distribution Channel
Commissions Comments
Receptive Tour Operator
30% You will provide a net rate based on a 30% margin.
Tour Operator 20% You will provide a net rate based on a 20% margin.
Online Travel Agent (Expedia)
20-30% You will provide a net rate based on a 20-30% margin.
Traditional Travel Agent
10% A travel agent charges the retail rate and retains 10% commission.
Consumer Direct 0% The consumer pays the retail rate which should be the same as provided by the other channels.
This table is intended only as a guide and commission levels may vary by market and relationship.
![Page 12: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/12.jpg)
Commissions and Pricing
12
Distribution Channel
Your price to them
Comments
Consumer Direct $100 Advertised retail price which includes your own profit margins.
Receptive Tour Operator
$70 This is your agreed-upon wholesaler rate to RTOs. RTOs will mark up the product based upon their commission structures.
Tour Operator $80 This is your agreed-upon tour operator rate. Tour operators may include your product in a larger trip and will mark up your product based upon their own commission structures.
Online Travel Agent (Expedia)
$70-$80 OTAs will require 20-30% commission depending on your agreement with them.
Traditional Travel Agent
$90 A travel agent charges the retail rate and retains 10% commission.
This table is intended only as a guide and commission levels may vary by market and relationship.
![Page 13: #2016IATC - Indigenous Canada · Agent $90 A travel agent charges the retail rate and retains 10% commission. This table is intended only as a guide and commission levels may vary](https://reader030.fdocuments.net/reader030/viewer/2022040222/5e48caf5cdf5bc43976d3ba6/html5/thumbnails/13.jpg)
Commissions and Pricing
Important! • The travel trade extends the reach of your marketing
to area that would be very costly to reach on your own.
• Think of commissions as a marketing expense, which
only has to be paid once a sale has been made.
13