Unlocking English Tourism: Travel Trade Opportunities

2. A Discover England Fund project In November 2015, the Government announced a £40 Million Discover England Fund; an unprecedented Opportunity for English tourism. The Fund aims to deliver world-class bookable tourism products joined up across Geographies and/or themes to provide an end-to-end customer experience. (Visit Britain)

3. Project update • To develop 12 new core itineraries and trails targeting the Nordic, • Spanish and Italian Travel Trade • Showcase 90 experiences • Build a brand new travel trade website • Attendance at least 2 travel trade exhibitions to promote the products • Host 3 fam visits with tour operators & provide a training module • Assist tourism businesses to become travel trade ready and help them • develop new product through training and support. • We now have over 70 experiences in place ready to take to the • next stage……….

4. Why work withinternational markets?

5. Benefits • Could help to alleviate seasonality problems • Spread risk across additional markets • International travellers provide a higher spend • Longer booking lead times

6. Why work withthe travel trade?

7. Benefits of working with the trade • They have an established customer base • They have market knowledge and are experts in their field • They have established networks and relationships • Your product is included in brochures and/or websitesin different languages • You only pay for results • You benefit from their marketing activities

8. What is the ‘travel trade’?

9. Who are they? • Tour Operators (TOs) –TUI, Flight Centre, DERTour, Backroads • Travel Agents (TAs) (Retail Travel Agents) –Thomas Cook, Co-Operative Travel, Abercrombie and Kent • Online Travel Agents (OTAs) –Expedia, Booking.com • Destination Management Companies (DMCs) –Hotels and More, E-Voyages, AC Tours(sometimes referred to as ITOs – Inbound Tour Operators) • Wholesalers –JAC Travel, GTA, Miki Travel

10. The travel distributionsystem

12. Different routes to market Direct

13. Different routes to market DMC

14. What do I need to considerbefore I work with the trade?

15. Questions to ask yourself • Is your business already established in the domestic market? • Do you find you are very busy over the UKpeak months but have capacity at other times of the year? • Are you able to be responsive to the trade? • Do you understand pricing and rates? • Do you know your target market?

16. Pricing You need to ensure your pricing is 3 things: Profitable Competitive Consistent

17. Pricing – top tips • Be commissionable • Be clear about different rates – do you have ahigh season rate and low season rate for example?Still make sure these are consistent • Be open to negotiate whilst still remaining profitable • Guarantee your rates for a financial year (1 April to 31 March)and recognise buying cycles so be prepared with your ratesat least 18 months in advance

18. Rates Gross rates = Net Rate + Distributor’s commission/margin Net rate = Gross rate – Distributor’s commission/margin Be clear whether your rates are net or gross.The gross rates are your retail rates, the pricesyou charge consumers publicly on your websiteor other direct routes

19. Commission levels • Tour Operator rate • Group rate • Tour series rate

20. Things to consider whentalking to the trade • What are their markets? • How many people do they bring to the UK? • Frequency of visits? • Group sizes • Is their product available to buy throughother distribution systems? • Marketing activities – what will they be doingwhich would include your accommodation/activity? • Exclusivity

22. Commission levels –things to remember If you have contracted with a DMC/ TO/ OTA thenthey will be working hard to sell your product for you.They will be using their existing database which theyhave spent time and money building. They may also needto pay commission to a travel agent if they sell this way. You need to ensure that you offer a high enough commissionso that it is profitable for them to sell your product.

23. Rates agreement/terms and conditions • To protect your business you will need to stateall booking terms and conditions with your rates • These will need to be supplied with your ratespreferably on one page • Seek legal advice to ensure that your terms and conditionsadequately protect your business • You may also be asked to complete a risk assessmentor SLA (service level agreement) to ensure you complywith distributor regulations/insurance policies

24. Visit Britain have produced a very informative toolkit.This shows the information that you will need to includein your rates agreement www.trade.visitbritain.com/research-and-insights/taking-england-to-the-world/

25. Negotiation • Prepare • Listen • If you don’t ask, you won’t get • Be prepared to compromise • Is there a Win-Win solution?

26. Know your markets

27. What markets are right for me? • Use the research and statistics available(www.trade.visitbritain.com/research-and-insights/market-insights/) • Align your product with markets (look at price,activities/types of accommodation, length of stay,location) – which market is best suited? • Understand booking cycles, lead times, travel tradein that country • Understand and respect cultural differences

28. Top tips

29. Targeting the trade • Do research before targeting the trade,know what they are looking for andbe clear about what you can offer • Have a sales kit ready • Know your rates • Be prepared to stand out from the crowd

30. Fam trips/educationals • A great way to reach new markets andshowcase your product • Usually on an FOC basis and great to work withother businesses in the area to show the area –contact your local DMO to see if there are anyyou can get involved in • Know who you will be welcoming – find outwho they are, any additional requirements etc • Give a good welcome • Follow up

31. Working with others Tourists don’t tend to travel to an area for justone aspect e.g. a hotel, a restaurant, an experience.They will travel for all the elements. What can you join with to enhance your offer?Is there an opportunity to work with others?

32. Website and social media • Keep your website, if you have one, up to date • Use nice images • Can you translate into more languages,especially if you are targeting a certain market • Keep your pricing consistent • Have links to your social media site • Be active on social media • Be aware of different markets social media preferences

33. Reviews • Review sites can act as an inspiration for booking –30% of travellers cite review sites as an influenceon destination choice • Try to reply to every review, the good and bad! • Remember – if you think the review is incorrectyou can ask TripAdvisor to take the review down

34. Next Steps • Sign the Business Pledge form and commit to help us build new • experiences for the international Travel Trade by March 2019 • Complete your trade form which includes your experience • details, group sizes and pricing by Mid Feb 2019 ready for the • copy writer • Be available to host photographers and travel trade • Be open to work with OTA’s and the Travel Trade.

35. Next Steps • Sign the Business Pledge form and commit to help us build new • experiences for the international Travel Trade by March 2019 • Complete your trade form which includes your experience • details, group sizes and pricing by Mid Feb 2019 ready for the • copy writer • Be available to host photographers and travel trade • Be open to work with OTA’s and the Travel Trade.

36. Questions