A Discover England Fund project

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Presentation transcript:

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)

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……….

Why work with international markets?

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

Why work with the travel trade?

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 websites in different languages You only pay for results You benefit from their marketing activities

What is the ‘travel trade’?

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

The travel distribution system

Different routes to market Direct

Different routes to market DMC

What do I need to consider before I work with the trade?

Questions to ask yourself Is your business already established in the domestic market? Do you find you are very busy over the UK peak 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?

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

Pricing – top tips Be commissionable Be clear about different rates – do you have a high 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 rates at least 18 months in advance

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 prices you charge consumers publicly on your website or other direct routes

Commission levels Tour Operator rate Group rate Tour series rate

Things to consider when talking 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 through other distribution systems? Marketing activities – what will they be doing which would include your accommodation/activity? Exclusivity

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

Rates agreement/ terms and conditions To protect your business you will need to state all booking terms and conditions with your rates These will need to be supplied with your rates preferably on one page Seek legal advice to ensure that your terms and conditions adequately protect your business You may also be asked to complete a risk assessment or SLA (service level agreement) to ensure you comply with distributor regulations/insurance policies

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

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

Know your markets

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 trade in that country Understand and respect cultural differences

Top tips

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

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

Working with others Tourists don’t tend to travel to an area for just one 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?

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

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

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.

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.

Questions