Setting Commission With Agents [Rezdy Academy Webinar]

688 views

Published on

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

Published in: Travel, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
688
On SlideShare
0
From Embeds
0
Number of Embeds
78
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Setting Commission With Agents [Rezdy Academy Webinar]

  1. 1. 15th April, 2014 Starts at 10AM AEST Setting Commission with Agents
  2. 2. Kim Beresford Customer Success Manager, Rezdy kim@rezdy.com MEET YOUR PRESENTER
  3. 3. MEET YOUR MODERATOR Christabelle Tani Marketing Manager, Rezdy christa@rezdy.com
  4. 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. 5. Manage your agents commission the right way
  6. 6. How many Agents are you working with? ● 1-3 ● 4 or more ● None (yet!) POLL:
  7. 7. AGENDA Looking to industry standards for commission 2 3 Calculating commission rates Automating agent bookings with your booking system 1
  8. 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. 9. Direct Distribution 1 - LOOKING TO INDUSTRY STANDARDS Commission is set by you and your agent (not less than 10%) YOUHOSTEL CONCIERGE
  10. 10. 1 - LOOKING TO INDUSTRY STANDARDS TOURIST Contacts retail travel agent and books accommodation and tours for several weeks More Complex Distribution
  11. 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. 12. TRAVEL AGENT Plans itinerary through a brochure of a tour wholesaler 10-20% OF RETAIL PRICE 1 - LOOKING TO INDUSTRY STANDARDS
  13. 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. 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. 15. 1 - LOOKING TO INDUSTRY STANDARDS
  16. 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. 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. 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. 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. 20. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM SET COMMISSION RATES FOR YOUR AGENTS
  21. 21. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
  22. 22. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
  23. 23. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
  24. 24. 3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
  25. 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. 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. 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
  28. 28. ?

×