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Every successful tour operator works with agents who get commission for each booking they send you. Since their piece of the pie is what motivates them to sell for you, you want to make sure that you manage their commission in the right way. This is your chance to learn: What the industry standards are for agent commission How to calculate commission rates How to automate agent bookings with your booking system
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15th April, 2014Starts at 10AM AEST
Setting Commission with Agents
Kim BeresfordCustomer Success Manager, Rezdykim@rezdy.com
MEET YOUR PRESENTER
MEET YOUR MODERATOR
Christabelle TaniMarketing Manager, Rezdychrista@rezdy.com
Type your comments and questions into this box.We will address it at the end of the webinar.
On Twitter use the hashtag #rezdyacademy
JOINING IN TODAY
Manage your agents commission the right way
How many Agents are you working with?
● 1-3● 4 or more● None (yet!)
POLL:
AGENDALooking to industry standards for commission
2
3
Calculating commission rates
Automating agent bookings with your booking system
1
YOU MIGHT BE THINKING...
I don’t need to plan the amount of commission to give my agents… I’ll just give them all the
same rate!
Direct Distribution
1 - LOOKING TO INDUSTRY STANDARDS
Commission is set by you and your agent (not less than 10%)
YOUHOSTEL CONCIERGE
1 - LOOKING TO INDUSTRY STANDARDS
TOURIST
Contacts retail travel agent and books
accommodation and tours for several weeks
More Complex Distribution
Retail Travel Agent1 - LOOKING TO INDUSTRY STANDARDS
● Works out of a brick and mortar location
● Available in-person to help people who want to plan a vacation
TRAVEL AGENT
Plans itinerary through a brochure of a tour
wholesaler
10-20% OF RETAIL PRICE
1 - LOOKING TO INDUSTRY STANDARDS
Tour Wholesaler1 - LOOKING TO INDUSTRY STANDARDS
● Never sell direct to consumers
● Link individual tour operators with retail travel agents
● Supply tour options that include transport, accommodation, and tours
● Promote tour programs they think will appeal to certain markets, with campaigns to retail travel agents and consumers
● They have a different price for tour operators to participate in their programs
TOUR WHOLESALER
Contacts inbound tour operator to book each
element of the tour itinerary
25-30% OF RETAIL PRICE
1 - LOOKING TO INDUSTRY STANDARDS
1 - LOOKING TO INDUSTRY STANDARDS
Inbound Tour Operator1 - LOOKING TO INDUSTRY STANDARDS
● Specialises in providing tours to overseas travellers visiting a specific area where they operate from
● Uses established partnerships with local suppliers
● Offer advanced knowledge of a destination
● Also known as a ‘ground operator’ or ‘destination management company’
INBOUND TOUR OPERATOR
Plans itinerary
through a brochure of a tour wholesaler
& books with individual suppliers
25-30% OF RETAIL PRICE
1 - LOOKING TO INDUSTRY STANDARDS
You pay an ITO 30% commission directly
The ITO keeps 10% and gives 20% to a Tour Wholesaler
The Tour Wholesaler keeps 10% and gives the remaining 10% to the Retail Travel Agent
The Retail Travel Agent retains the 10% commission
You don’t need to pay commission to each of them
30%
10% 20%
10%
10%
1 - LOOKING TO INDUSTRY STANDARDS
You may also want to offer additional “over-ride” commission to encourage sales, which is generally 2-3%
on top of existing commission rates.
2 - CALCULATING COMMISSION RATES
COMMISSION RATE FORMULA
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
SET COMMISSION RATES FOR YOUR AGENTS
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
1 Give them what they need● Sales Kit● Rate Sheet● Terms of Trade
2 Make it simple for them to book with you
MAKE IT OFFICIAL
NEXT STEPS1
2 Build a Partners Catalog with RezdyFull Tutorial: https://support.rezdy.com/entries/30031964-Share-your-Products-with-an-Agent
3 More tips on distributing productsTips: http://www.rezdy.com/blog/topic/distribution
Add an agent to RezdyFull Tutorial: https://support.rezdy.com/entries/29398370-Invite-Agents
Vote on ideas:
1
2 Commissions for agents with/without extrashttps://support.rezdy.com/entries/21815735-Commissions-for-agents-with-without-extras
Fixed dollar amount agent commissionhttps://support.rezdy.com/entries/25403629-Fixed-Dollar-Amount-Agent-Commission
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