Commission tour operators in the price of the ticket: how to load units, apart-hotels and glamping.

Lecture 4

Commission of tour operators in the price of the ticket: how to load units and not destroy the economy of the management company

Why the commission of tour operators is not a loss, but a cost of loading

In resort development, the commission of tour operators is often misunderstood, and it's seen as an extra expense that reduces the income of the property. In practice, it's not. The commission of tour operators and agents is the cost of accessing the market.

The tour operator has an agency network, a customer base, managers, product packaging experience, regional sales and tourist trust. The travel agency works with the end customer, explains the program to them, answers questions, removes doubts and closes the deal. This work must be paid.

If the site wants to be widely loaded in Russia, it should motivate sellers. The tourist market is pragmatic: the agent is more active in selling the product that is clear, well packaged and gives a normal commission.

Why a low price without commission does not guarantee a sale

Sometimes it seems that if you make a ticket cheaper, tourists will choose the object, but for a new resort product, this is a weak strategy. Low price does not help if the product does not reach the buyer through a strong sales channel.

A travel agency may not promote a cheaper property if it makes little money, and a tour operator may not include a product in priority sales if the commission is weak, the materials are incomplete, the confirmations are long, and the program is poorly packaged.

So it can be cheaper than the competition, but it can sell worse, and for the unit owner, it's a bad result: formally, the price is attractive, but the calendar is empty.

Why you can’t pay a commission from a management company

The management company commission and the sales channel commission are different economic categories.

The management company commission pays for the management of the object:

• staff
• settlement
• cleaning
• reporting
• servicing
• technical
• property-work
• quality of service
• tariff policy
• Communication with channels and operational coordination.

The commission of the tour operator and the agency pays for the attraction of the guest.

If the management company receives an estimated 8-10 percent for management, and of this amount must give 15-20 percent to the tour operator channel, the model becomes impossible: the Criminal Code is left without money for management, quality falls, reporting deteriorates, owners are dissatisfied, and the object loses its reputation.

Therefore, the implementation costs should be allocated separately and included in advance in the price of the ticket.

How to calculate the price of a ticket through a tour operator

The correct model starts with the internal price of the property: the internal price should cover accommodation, cleaning, utility costs, operation, depreciation, unit owner income, management company commission, taxes, repair reserve and minimum margin.

Then you create a price for the external sales channel, and if the program is sold through the tour operator and the agency network, you add the implementation budget on top.

For example, the internal price of the program is 100 000 rubles. Through the tour operator network it can be sold for 120,000-125 000 rubles. The difference becomes the sales budget: the commission of the tour operator, the agency commission, advertising materials, information tours, escort, banking expenses, the work of managers and commercial processing of reservations.

So the object preserves the economy, the owner of the unit receives income, the management company receives its remuneration for management, and the sales channel is motivated to sell.

Why a tour operator ticket should be stronger than a direct booking

You can't just pick up a number, add a commission and call it a ticket, and the customer will quickly see that it's directly cheaper, and they will start bypassing the agency network, and the tour operators will lose interest.

Therefore, through tour operators it is better to sell not individual nights, but packaged programs:

• residence
• feeding
• transfer
• excursion
• bathhouse
• route
• medical consultation
• wellness-block
• stress-program
• recovery
• family-pack
• Corporate retreat or long stay.

So the price doesn't look artificial. The tourist doesn't buy just a room, he buys a script for the trip. It's easier for the agent to explain the value. The tour operator gets the product that's clear. The management company gets the load. The unit owner gets the income.

Why you can’t dump direct sales

Direct sales are profitable because they have fewer external commissions, but if the same tour is always much cheaper on the management company's website than the tour operators and agencies, the affiliate network will stop working.

An agent will not waste time on a client if he realizes that the client will then buy directly cheaper.

So you need price discipline, and you can give a direct customer not a rough discount, but additional value: late check-out, improved category if you have seats, bonus tour, consultation, club conditions, priority reservation or re-entry discount.

This way the management company develops its own guest base and does not destroy the external sales network.

How to motivate tour operators and agencies

A tour operator needs a convenient product, and the management company must give the partners photos, videos, day-by-day programs, seasonal prices, net rates, retail prices, cancellation conditions, quotas, confirmation dates, route map, meal description, transfer, medical restrictions, contact manager and ready answers to customer questions.

You need training webinars, agency presentations, info tours, promotional materials and a clear booking system, and if a product is difficult to sell, the agent will choose another.

The task of the management company is to make the resort cluster of Altai not a difficult task for the seller, but a finished product.

How to manage quotas for tour operators

A tour operator needs quotas so he can sell a property with confidence, but you can't give it away without control, and if a partner blocks the rooms and doesn't sell them, the property loses revenue.

The contract requires a time limit for the release of quotas, and if the tour operator has not confirmed sales by a certain date, the numbers are returned to the general fund and can be sold through other channels.

This keeps the balance: the tour operator gets the opportunity to sell, but the facility doesn't become hostage to unsold quotas.

How to explain the commission to the unit buyer

The unit owner needs to be explained: the sales channel commission is withheld not because the management company wants to take more, but because the external channel brought the guest.

If the guest came directly, the cost of the channel is lower. If the guest came through a tour operator or an agency, the commission is higher, but without this channel, the reservations could not be. Empty unit does not generate income. The unit sold after the commission brings money.

The buyer should not only see the percentage of withholdings, but the final load and net income.

Why budgeting increases trust in the project

When a developer shows that the model has sales costs, the buyer sees a mature approach, which is better than a beautiful return without commissions.

The professional model honestly shows that in order for a facility to be loaded, you need tour operators, agencies, advertising, electronic platforms, managers, content, information tours and partner support, these costs are pre-built into the price of the product and do not destroy the economy of the management company.

This approach increases investor confidence.