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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