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Trade Marketing

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This section provides information on wholesaling, packaging products and providing commissions.

Packaging your product

Packaging represents an opportunity for individual businesses to develop a product to sell to consumers via the domestic travel industry. This process also provides businesses with the opportunity to develop relationships with other products in their region and offer combined product packages.

What is wholesaling?

Domestic wholesalers seek out products and services, which they then on-sell to consumers directly or via the retail distribution network. This section provides you with all the information you need to know about working with domestic wholesalers.

Commissions – what are they and who pays them?

If you are intending to work with domestic travel industry partners or booking systems; travel agents, booking offices, wholesalers, airline partners, online booking sites or inbound tour operators, you must be prepared to pay a level of commission. It should be seen as a fee payable to any intermediary that on-sells your product.  
 
The level of commission you will be expected to pay will vary depending on the markets you are selling in i.e. Domestic Vs International, and the trade partners or bookings systems you are working with. As a general rule, allow up to 20% in the domestic markets and 30% in international markets.

Please remember you only pay commissions when you get a booking via the travel industry. All businesses need to make sure commissions are built into rack or retail rates. You cannot add them onto your normal rates, as this disadvantages the consumer and travel industry partners.

Last Updated ( Thursday, 24 February 2011 )