How to Sell Vacation Packages to Travel Agents and Consumers
Tour operators always ask themselves which channels are the best and most profitable to sell vacation packages to, and often the main question comes down to whether they should sell through travel agents (B2B) or directly to customers (B2C). Selling through B2B and B2C channels presents unique challenges and opportunities for tour operators.
The travel industry is undergoing major shifts in how travelers look for and book their travels. With the dominance of digital media and abundant resources online, customers more often book tours themselves online: self-sufficient travel increased from 62% in 2019 to over 80% during the first three quarters of 2023. Travelers are looking for more personalized and unique experiences, and when they book themselves, they can select the experience that’s best suited for them. While B2C travel has surged in popularity, that doesn’t mean that tour operators should neglect selling to travel agents. Travel isn’t going anywhere, and consumers are still using travel agents to find and book their trips.
Selling vacation packages to B2B and B2C audiences comes with its own set of factors, but the bottom line is tour operators that can sell to both have more opportunities to diversify their offerings and grow their tour business. The ability to successfully sell vacation packages to travel agents and consumers comes down to understanding the benefits and drawbacks and having the right software.
Challenges in Selling Tour Packages to Travel Agents
Selling to travel agents can broaden your customer base, but it also introduces dependencies and complexities for your team to manage. Here are a few of the most common challenges:
Dependence on intermediaries: Tour operators are dependent on intermediaries, and this can be a double-edged sword. While this provides access to a broader customer base, tour operators rely on these agents to promote and sell their vacation packages and accurately communicate the value and details of their vacation packages.
Commission structures: Negotiating fair commission structures with travel agents can also be challenging. Striking the right balance between offering competitive commissions and maintaining profitability requires careful financial planning.
Communication and coordination: Managing communication and coordination with multiple travel agents is often complex. Keeping everyone on the same page when you make updates, add promotions, and change itineraries requires efficient systems and clear communication channels. Miscommunications or delays in updates can lead to confusion and dissatisfied customers.
Lack of brand visibility: In a B2B model, a tour operator’s brand may take a backseat as the travel agent becomes the face of the product. Maintaining a strong brand presence can be challenging when customers associate the experience primarily with the travel agent.
Opportunities in B2B Sales to Travel Agents
Expanded reach: Partnering with travel agents allows tour operators to tap into an established network they might not otherwise have, reaching a broader audience than they might on their own. Travel agents build their own relationships with individuals and corporate clients, and this increased reach can result in more bookings and exposure.
Additional expertise: Travel agents also bring expertise and local knowledge that can improve the overall customer experience. By leveraging the expertise of these agents, tour operators can offer more comprehensive and tailored vacation packages. For instance, travel agents can provide insights into the best times to visit certain destinations, recommend unique local experiences, and offer advice on travel logistics.
Reduced marketing costs: B2B relationships often mean lower marketing costs for tour operators. Instead of investing heavily in advertising and promotion, they can rely on the marketing efforts of their travel agent partners. It’s a win-win!
Targeted market segments: Often travel agents focus on a specific segment, such as adventure seekers, luxury travelers, or corporate clients. Tour operators can get access to these more targeted travel segments, and travel agents can help position their vacation packages in a way that will resonate with the target segment.
Challenges in Selling Travel Packages Online to Customers
Marketing and sales effort: Acquiring customers directly requires significant investment in marketing and sales efforts. From digital advertising to content creation and social media management, tour operators must allocate resources to build brand awareness and attract customers. The costs can quickly add up, making it a significant financial burden, especially for smaller operators with limited budgets
Customer acquisition and retention: Even more difficult, building a direct-to-customer model demands a robust strategy for customer acquisition and retention. Earning customer trust and loyalty in a competitive market is an ongoing challenge. Tour operators need to offer compelling reasons for customers to choose their services over others.
Comprehensive management: Managing the entire customer journey, from booking to post-trip feedback, can be operationally intensive. Tour operators must invest in efficient systems to handle reservations, customer support, and feedback.
Opportunities in Selling Directly to Customers
Brand control: Direct B2C sales allow tour operators to have full control over their brand identity and customer interactions. Building a strong brand presence can lead to increased customer loyalty and word-of-mouth referrals.
Customer feedback: Tour operators can receive direct and immediate feedback from customers, enabling them to make quick adjustments to improve services. This direct line of communication helps drive customer satisfaction and provides opportunities for you to refine your vacation packages.
New revenue streams: By selling directly to customers, tour operators can explore additional revenue streams such as upselling personalized experiences, merchandise, or other services. For example, you can offer premium services such as private tours, exclusive access to attractions, or customized itineraries to generate additional profits.
5 Tips to Sell Vacation Packages
Now that you have a good understanding of the benefits and downsides of selling to travel agents and customers, let’s explore a few tips to effectively sell and market vacation packages to both travel agents and consumers:
- Create customized travel packages for both travel agents and individual customers. Make sure you offer various options for activities, accommodations, and transportation.
- Include exclusive experiences that focus on local culture and attractions. This will help show the value that your travel company can add for travel agents and customers.
- Plan promotions and incentives during high and low seasons. It might seem like an obvious choice to offer them during high season, but lower seasons can hold just as high of an opportunity.
- Secure listings in tour publications and guides to increase your visibility. You can either submit your vacation packages manually or work with a service or individual who submits them to multiple publications on your behalf.
- Forge long-term relationships with previous customers and friendly travel agents. Stay in touch by sending updates and email newsletters, and even consider offering special deals for returning customers.
Partnering With The Right Tour Operator Software Solution
Despite the complexity and differences in selling B2B vs B2C, tour operators that choose a comprehensive software solution will be able to more easily and efficiently sell more trips to both travel agents and customers. Many tour operators neglect to consider how they’re going to keep passenger information safe but still accessible to travel agents.
Softrip solves this challenge by providing three user types that can help tour operators control and manage who sees what information. This customization ensures that when they sell to both travel agents and direct customers, they can make that process easy and seamless.
- Internal users: These are tour operator employees who have access to the entire reservation system. They can see all passenger details, documents, and reporting functions for both travel agents and direct customers.
- Travel agents: This user type is restricted to only their passenger information. Within the system, they have access to Softrip reservations, documents, and reporting, but aren’t allowed to see any other reservation information, keeping passenger details safe and secure. Information like travel agent commissions can be easily hidden.
- Direct users: These are the direct customers, passengers who book travel through the tour operator’s reservation system. Direct users will only be able to see their booking and reservation information, with no other access to the system.
By having a platform that can provide the right levels of access while keeping passenger information secure, tour operators can expand their offerings and do more in less time through a comprehensive, streamlined system.
Choosing between B2B and B2C sales models is a key decision for tour operators, and with the right technology in place, you can sell to both. While each approach presents its own set of challenges and opportunities, successful tour operators can often find a balanced approach that aligns with their business goals and customer expectations. Whether you sell vacation packages to travel agents, customers, or both, Softrip can help you streamline and simplify your business processes to grow your business and reduce manual work. See how it works by scheduling a personalized demo!
