15th April, 2014Starts at 10AM AEST
Setting Commission with Agents
Kim BeresfordCustomer Success Manager, [email protected]
MEET YOUR PRESENTER
MEET YOUR MODERATOR
Christabelle TaniMarketing Manager, [email protected]
Type your comments and questions into this box.We will address it at the end of the webinar.
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JOINING IN TODAY
Manage your agents commission the right way
How many Agents are you working with?
● 1-3● 4 or more● None (yet!)
POLL:
AGENDALooking to industry standards for commission
2
3
Calculating commission rates
Automating agent bookings with your booking system
1
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!
Direct Distribution
1 - LOOKING TO INDUSTRY STANDARDS
Commission is set by you and your agent (not less than 10%)
YOUHOSTEL CONCIERGE
1 - LOOKING TO INDUSTRY STANDARDS
TOURIST
Contacts retail travel agent and books
accommodation and tours for several weeks
More Complex Distribution
Retail Travel Agent1 - LOOKING TO INDUSTRY STANDARDS
● Works out of a brick and mortar location
● Available in-person to help people who want to plan a vacation
TRAVEL AGENT
Plans itinerary through a brochure of a tour
wholesaler
10-20% OF RETAIL PRICE
1 - LOOKING TO INDUSTRY STANDARDS
Tour Wholesaler1 - 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
TOUR WHOLESALER
Contacts inbound tour operator to book each
element of the tour itinerary
25-30% OF RETAIL PRICE
1 - LOOKING TO INDUSTRY STANDARDS
1 - LOOKING TO INDUSTRY STANDARDS
Inbound Tour Operator1 - 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’
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
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
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
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
SET COMMISSION RATES FOR YOUR AGENTS
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
3 - AUTOMATE AGENT BOOKINGS WITH YOUR BOOKING SYSTEM
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
NEXT STEPS1
2 Build a Partners Catalog with RezdyFull Tutorial: https://support.rezdy.com/entries/30031964-Share-your-Products-with-an-Agent
3 More tips on distributing productsTips: http://www.rezdy.com/blog/topic/distribution
Add an agent to RezdyFull Tutorial: https://support.rezdy.com/entries/29398370-Invite-Agents
Vote on ideas:
1
2 Commissions for agents with/without extrashttps://support.rezdy.com/entries/21815735-Commissions-for-agents-with-without-extras
Fixed dollar amount agent commissionhttps://support.rezdy.com/entries/25403629-Fixed-Dollar-Amount-Agent-Commission
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