Online travel agencies come in many shapes and sizes. They may specialise in a mix of flights, accommodation, or tours and activities. They may be best-known for exploring the great outdoors, culinary tours, history and heritage, or art and culture. Or they may take a slightly less specialised approach, to appeal to a broader customer base.
If you make the decision to use distribution to increase sales, partnering your business with the right types of OTA is critical. Read on for a run-down of ten key factors to consider, when choosing the right online travel agencies to distribute your products through.
OTA alignment with your target customer
From the very outset, there must be a strong crossover between your organisation’s target customers and the OTA’s specialisation. If you’re a bus operator running hop-on hop-off tours, distribute your products through an online travel agency specialising in city sightseeing. Equally, if you offer food-tasting walking tours, partner with an agency focused on guided city walks.
By considering the demographic alignment between your target customer and different OTAs’ primary users, you’ll set yourself up for a strong partnership.
Commission rates and fees
Partnering with an OTA typically means your tours and services will reach a wider audience, boosting brand awareness and increasing revenue. But, of course, that comes at a cost – the OTA’s commission. Rates vary between 15% and 30%, and can either be a fixed rate or a percentage of the sale price.
Beyond commission rates, other costs may be worth considering. Examples include booking fees per transaction or credit card processing fees.
You need to weigh up the increase in revenue you’ll likely gain from your partnership, with the commission charges involved. So, check the commission models and rates of a range of relevant OTAs to understand the best approach.
Online visibility and exposure
Increased online visibility is one of the main drivers for tour operators to partner with OTAs. Online travel agencies pour huge amounts of time, effort, and money into search engine optimisation to stay at the top of the SERPS (search engine results page). Operators partnered with such agencies benefit from these efforts in the visibility of their tours.
When considering the various OTAs to partner with, consider their search engine visibility for key terms related to your tours or services. You might also check how proactively the various travel agencies promote other products similar to yours—either in paid advertising or on social media.
Customer reviews and online reputation
A key differentiator between the various OTAs a tour operator can sell through is their user and customer reviews, and the online reputation they reflect. Key questions to ask yourself when considering who best to partner with include:
- What is the OTA’s reputation on user feedback websites such as TripAdvisor, Trustpilot, and Google Reviews?
- How does the travel agency respond to negative customer feedback on the tours or experiences they’ve sold? Are they proactive in explaining or apologising if consumers’ expectations are not met?
- Does the agency actively engage with users and customers? Swift responses to online queries are the easiest way to build consumer confidence.
Contract terms and conditions
When you sign on the dotted line to partner with your OTA of choice, you agree to abide by their contractual terms and conditions. These terms cover everything from contract duration and distribution exclusivity, to grievance procedures and termination processes.
When signing up to distribute your tour products with an OTA, be sure to read the small print and understand your contractual obligations.
You’re considering partnering with OTAs because you know they have the marketing and promotional resources you need to build your business. But not all OTAs have access to the same levels of promotional expertise, resources, or funding.
Successful online marketing is a key driver of revenue, so consider the following factors when choosing an OTA to partner with:
- Does the OTA proactively market the tours and experiences listed on its website? Tell-tale signs include regular newsletters and an active social media presence.
- Does the agency have a skilled team of writers and editors, working hard in the background to help you make your product descriptions stand out? Engaging tour copy and detailed descriptions drive bookings.
Strong supplier and customer support
OTAs have two sets of users to care for: the suppliers whose tours and services they distribute and the customers buying those products on their website. If you’re weighing up which online travel agencies to sell through, be sure to check the quality of their supplier and customer support before committing.
Key questions to ask yourself include:
- How quickly does the OTA address your supplier inquiries or problems?
- How good are they at solving travellers’ questions or issues from booking to delivery and beyond?
- How many communication channels – such as email, online chat, or phone lines – do they have available?
The most reliable OTAs work hard to ensure strong service from the supplier and customer sides, at every point in the journey.
Seamless booking system integration
For potential customers to enjoy finding and booking your tours or experiences through your selected OTA, the integration between supplier and OTA booking systems must be watertight. So, when choosing an OTA to partner with, verify the quality of integration between your and your OTA’s booking systems.
Check how well the integration handles availability updates, product changes, and general synchronisation. This point leads directly to a closely related factor for tour operators selecting an OTA to work with…
The consumer’s booking process
Competition between rival tour operators and among the various OTAs is stiff, and small margins can make a big difference. One way OTAs can stand out is by building a user-friendly online booking process.
When choosing an OTA to trade through, test their booking platform. Is it user-friendly and intuitive? Is it simple to place and amend bookings? Is availability listed in real-time? Is there smooth integration between supplier and OTA booking systems?
If so, you can rest assured that the customers finding and booking your tours online will feel supported throughout the booking process and beyond.
Geographic reach and your target markets
You need to consider the geographic destinations your OTAs of choice focus on, and ensure there’s a strong crossover with the destinations your tours serve. Give thought to their global reach, to help ensure your distribution channels run to your target markets. Which regions does the OTA serve? Are there target markets aligned with yours? Finding the answers to questions like these will ensure you’re aligned with your online travel agency of choice.
In all likelihood, several different OTAs specialise in selling the types of tours or activities you offer. Consider the points raised in this blog when making your decisions, and be sure to settle on the best OTAs to attract your target market.