Setting Commission With Agents [Rezdy Academy Webinar]

1. 15th April, 2014 Starts at 10AM AEST Setting Commission with Agents

2. Kim Beresford Customer Success Manager, Rezdy kim@rezdy.com MEET YOUR PRESENTER

3. MEET YOUR MODERATOR Christabelle Tani Marketing Manager, Rezdy christa@rezdy.com

4. 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

5. Manage your agents commission the right way

6. How many Agents are you working with? ● 1-3 ● 4 or more ● None (yet!) POLL:

7. AGENDA Looking to industry standards for commission 2 3 Calculating commission rates Automating agent bookings with your booking system 1

8. 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!

9. Direct Distribution 1 - LOOKING TO INDUSTRY STANDARDS Commission is set by you and your agent (not less than 10%) YOUHOSTEL CONCIERGE

10. 1 - LOOKING TO INDUSTRY STANDARDS TOURIST Contacts retail travel agent and books accommodation and tours for several weeks More Complex Distribution

11. Retail Travel Agent 1 - LOOKING TO INDUSTRY STANDARDS ● Works out of a brick and mortar location ● Available in-person to help people who want to plan a vacation

12. TRAVEL AGENT Plans itinerary through a brochure of a tour wholesaler 10-20% OF RETAIL PRICE 1 - LOOKING TO INDUSTRY STANDARDS

13. Tour Wholesaler 1 - 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

14. TOUR WHOLESALER Contacts inbound tour operator to book each element of the tour itinerary 25-30% OF RETAIL PRICE 1 - LOOKING TO INDUSTRY STANDARDS

15. 1 - LOOKING TO INDUSTRY STANDARDS

16. Inbound Tour Operator 1 - 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’

17. 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

18. 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

19. 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

20. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM SET COMMISSION RATES FOR YOUR AGENTS

21. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM

25. 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

26. NEXT STEPS 1 2 Build a Partners Catalog with Rezdy Full Tutorial: https://support.rezdy.com/entries/30031964-Share-your-Products-with-an-Agent 3 More tips on distributing products Tips: http://www.rezdy.com/blog/topic/distribution Add an agent to Rezdy Full Tutorial: https://support.rezdy.com/entries/29398370-Invite-Agents

27. Vote on ideas: 1 2 Commissions for agents with/without extras https://support.rezdy.com/entries/21815735-Commissions-for-agents-with-without-extras Fixed dollar amount agent commission https://support.rezdy.com/entries/25403629-Fixed-Dollar-Amount-Agent-Commission