1 / 25

YoungTEC Professional Development Program 2018: Industry Overview & Distribution

Join the YoungTEC Professional Development Program 2018 and gain insights into the tourism industry. Speakers Judy Chen and Anna Black will discuss industry overview, distribution channels, stakeholder management, and the future of tourism.

lbeard
Download Presentation

YoungTEC Professional Development Program 2018: Industry Overview & Distribution

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. YoungTEC Professional Development Program 2018 Week 1: Industry Overview & Distribution • Speaker 1: Judy Chen, CEO of Tourism Export Council • Speaker 2: Anna Black, Executive Director of General Travel New Zealand

  2. Course Overview New Zealand Legend Auckland • Auckland = 21 • Rotorua/C.N.I = 5 • Wellington = 9 • Christchurch/Upper South Island = 9 • Queenstown = 12 Capital Rotorua/C.N.I Major cities Wellington Christchurch Queenstown

  3. Course Overview • Evening Outline: • 5.30pm Pre networking • 6.00pm Introductions and first speaker • 6.25pm Q&A • 6.35pm Short break • 6.45pm Second speaker • 7.10pm Q&A • 7.30pm Close

  4. Speaker 1: Judy Chen CEO of Tourism Export Council

  5. INDUSTRY OVERVIEW Value of Tourism Stakeholders Future of Tourism

  6. VALUE OF TOURISM • International Visitor Arrivals (year ending Apr 2018): 3.8 million • Economic Contribution (year ending Mar 2017): • International $14.5 billion, 20.7% of NZ’s total export earning & #1 • Domestic $21.4 billion • Tourism directly contributes to $14.7 billion (5.9%) of GDP • Tourism directly employed 8.4% of total employment (Data sources: MBIE & Stats NZ)

  7. VALUE OF TOURISM • Other Contributions/Impacts: • Social – e.g. using tourism address local unemployment; opportunity to educate the youth on local legends & stories • Infrastructure/other services and facilities– e.g. flight connectivity, roading, local cafes, retail outlets, etc.

  8. STAKEHOLDERS – PUBLIC SECTOR • MBIE • Central Government • Other Government agencies: DOC, INZ, NZTA, MPI • Local councils • Tourism New Zealand • New Zealand Maori Tourism • RTOs / Economic Development Agencies • Education providers

  9. STAKEHOLDERS – PRIVATE SECTOR • Industry Associations: TECNZ, TIA, HPNZ, HNZ, BCA, RVA, etc. • Inbound Tour Operators (ITOs) • Wholesale & retail travel agencies • Airlines • Accommodation providers • Other transport operators • Activities & attractions • F&B & other retail providers • Other service providers: online platforms (OTAs, Airbnb, GDS, channel managers, software, etc), financial services

  10. FUTURE OF TOURISM • Forecast 2023: • 4.9 million visitors • $15.3 billion international visitor expenditure • China becomes our #1 market in spend Great to have continued growth but how can we manage this sustainably?

  11. FUTURE OF TOURISM • Destination management & addressing our challenges: • Conservation and other environmental impact • Social license to operate • Infrastructure: e.g. do we need more toilets for more freedom campers? • People & Skills: how to attract & retain talent? • Regional development & dispersal • Tourism funding: e.g. new international visitor levy? Local taxes? • Our ability to adapt to tech innovations • Data & insight

  12. “Future-Proof our Industry”Q&A

  13. Short Break

  14. Speaker 2: Anna Black Executive Director General Travel New Zealand

  15. Getting the most of the Distribution Channel What to expect of your ITO and what they will expect of you.

  16. SOURCES OF BUSINESS

  17. DISTRIBUTION 101

  18. WHAT IS AN ITO/IBO/DMC? Inbound Tour OperatorInbound OperatorDestination Management Company “An Inbound operator is just a middle man who does nothing to add value to my business and takes a huge cut for doing nothing”

  19. What do we actually do? For our clients overseas: Research/recommend product Secure allotments Provide a tariff (all info in one place) Provide product updates Client famils– easier to sell Marketing partnerships Opening new markets Overseas offices to convert & train A one-stop-shop for all NZ product - including 24/7 support - one payment - itinerary narrative – ‘NZ Story’ Proactively seek new wholesalers who are not (yet!) selling NZ

  20. So what do we actually do? For our supplier partners: Provide bulk, regular, year round business of many types from many markets - FIT, group, series, incentive, special interest Provide payment protection - assume any credit risk - deal with foreign currency - no need to chase overseas for relatively small amounts Invest in your product (and ours) with clients visits to update, train, encourage more NZ brochure space and grow sales Welcome supplier partner office visits to update our staff We can easily invest several hundred hours of time and effort before any bookings are made that you don’t see

  21. What we ask for in return? Rates 18 months in advance Terms and Conditions Product Manual with rates, terms, descriptive text and imagery Same day turnaround for booking/quote requests If fully booked, offering a solution/alternative rather than a simple ‘no can do’ eg different room type, product, date COMMISSION Remember: Commission is only paid when the sale is made

  22. How much Commission should I pay? OVERSEAS OVERSEAS OVERSEAS NZ INBOUND NZ PRODUCTS VISITORS TRAVEL AGENT WHOLESALER TOUR OPERATOR 10% commission 10-15% commission 5-10% commission Pay 25-30% commission 10% 15% 20% RRP $110 NETT RETAIL $99 NETT Wholesale $94 NETT ITO $88 RRP $110 Revenue: $11 $5 $6 (6.8%) $88 10% 20% 25% RRP $110 NETT RETAIL $99 NETT Wholesale $88 NETT ITO $83 RRP $110 Revenue: $11 $11 $5 (6%) $83 10% 20% 30% RRP $110 NETT RETAIL $99 NETT Wholesale $83 NETT ITO $77 RRP $110 Revenue: $11 $11 $11 (14%) $77 10% 25% 30% RRP $110 NETT RETAIL $99 NETT Wholesale $83 NETT ITO $77 RRP $110 Revenue: $11 $16 $6 (6.8%) $77

  23. Distribution into the Future Inbound Tour Operators are reporting record levels of business from all markets, increasing year on year – the wholesale channel is certainly not dead! Tourism goes through highs and lows – at the moment we are riding the wave Recognise the Distribution Channel and where each player sits Pay commission and/or rebates according to the placement of that player in the food chain Every business wants a good MIX of all types of business, YIELDED to the highest level: - NEWS FLASH – ITOs want that too!! - work out your lowest acceptable nett rate and work up the distribution chain from there - don’t bow to pressure from OTAs for inventory access - get your market segment mix right, the price right and work with partners you know and trust

  24. Kia OraThank you 

  25. YoungTEC Professional Development Program 2018 Week 2: Social Licence & Destination Marketing Speaker 1: Gavin Oliver, EcoZip Speaker 2: Karly Bent, Northland RTO

More Related