Trainer: Siggi Frede · Trainer: Siggi Frede Clare Valley Regional Tourism Forum The How’s and Why’s of Tourism Distribution 25th June 2019 ‘Agritourism is a business venture

Trainer: Siggi Frede

Clare Valley Regional Tourism Forum The How’s and Why’s of Tourism Distribution

25th June 2019

‘Agritourism is a business venture on a working farm, ranch or agricultural enterprise that blends entertainment, education and tourism to provide a fun, exciting and memorable experience for people of all ages.’ (LSU AgCentre)

Image Source: http://www.textbooktravel.com/agritourism/

‘Wine and food tourism encompasses travel primarily motivated by, or characterized by, wine and food leisure experiences that derive from the specific production, social and cultural dimensions of the destination’. (AU 2020)

Agri- and Wine Tourism

• Agri- and Wine Tourism marries two

leading state economies creating a

win-win for everyone.

• Agri- and Wine Tourism celebrates

the successes of hard working

farmers and the businesses that

make up the heart of the Clare

Valley.

Source Image: Credit to https://regionaltourism.com.au/projects/agritourism/

Tourism Products

Source Images: Google

• Physical factor

Emotional factor Experiential factor Physical factor

Tourism Experiences

“A tourism product is what you buy; a tourism experience is what you remember.”Canadian Tourism Commission

“Living the brand is about delivering a distinctive or unique type of experience that enhances the guests destination experiences.”Global Destination Brand Science

Travellers

• Authentic personal experiences• Social interactions• Experience something new and different from home• Challenge themselves, physically, mentally, emotionally

Source Images: Wild Foraging Food Tours

Audrey Wilkenson Vineyard – Hunter Valley

• Memorable Experiences are those that emotionally connect visitors with authentic people, places and cultures – they create meaning

• Storytelling can take the static and turn it into an interactive experience

Storytelling

Penfolds Magill Estate

Le Cercle Lynch-Bages - Bordeux

Success Factors

1. Know your Target Markets 2. Understand key customer touchpoints3. Products and Experiences available in region 4. Know your Regional Tour Operators 5. Experience (s) only at your place, no one does it better6. Create a UVP - Unique Value Proposition7. Deliver a remarkable hospitality experience8. Share inspirational stories 9. Authentic and genuine 10.Touch, smell, taste, sight, sound

Success Factors

11. Backstage pass, educational 12. Source local artisan produce13. Feel like a local14. Surprise15. Create lasting memories 16. Brand Alignment CVT and SATC 17. Collaborate and refer within and across regions18. Package with likeminded operators 19. Digital Marketing Plan 20. Distribution Plan

Define your target markets

CV Experiences

Partner-ships Advertise-

ment

VICs

Clubs, Loyalty

Programs

Festivals & Events

EDMs, Newsletter

ATDW

Online Booking System

InfluencerSATC & CV websites

and brochures

Agents & Wholesaler

Online Travel Agents

TripAdvisor

Word of Mouth (WOM)

Brochures

Social Media

Travel blogs

Media & Trade Famils

Website Search

Key Customer Touchpoints

Customer Journey

Source: Skift 2018 Experiential Travel Trend Report

What are the Stat’s telling us?

Source: Skift 2018 Experiential Travel Trend Report

Distribution Direct

Tourism Distribution is complex – staged approach

CRM

Cellar Door

Social

Search, Review Sites

Online Booking System

Website (own, 3rd party)

Can tourism operators in today’s globally competitive marketplace afford not to be online bookable and work with leading online travel agents and traditional travel distributors?

The Big Question

https://www.statista.com/statistics/499694/forecast-of-online-travel-sales-worldwide/

What are the Stat’s telling us?

To compete in this digitally powered global world, tourism operators will require an integrated online marketing and distribution strategy to succeed.

Online Travel Australia

Source: Ibis World Report Feb 2019

Travel Websites Visited

Roy Morgan 2017

Leading OTA’s

https://www.expediagroup.com/expedia-brands/

Want to compete or rather collaborate?

Google Search

What are the Stat’s telling us?

https://www.thinkwithgoogle.com/consumer-insights/consumer-travel-smartphone-usage/

Australian Travellers

Roy Morgan 2017

Why Online Distribution

Visit Finland Dec 2017

76%

75% 43%

91%

74%

Why Online Distribution

|

THE NEW CURRENCY

IN A DIGITAL WORLD ISTRUST

6

Measure of trust = Reputation Source: Accor Hotels Case Study 2016

Why people read and publish reviews

|

Why people READ reviews?

ACCORHOTELS | eReputation _ Comité Liaison July 2015 17

Source: Accor Hotels Case Study 2016

Search

Review

Buy

• Google• Trip Advisor• OTA’s, Airlines • Southaustralia.com• Clarevalley.com

• Tripadvisor• Trivago • Skyscanner

Sales funnel is shifting

• Supplier direct • OTA’s • Wholesalers

• Distribution is about enhancing the visibility and saleof a tourism product by providing the ideal customer with a variety of ways to buy your product.

• Distribution is about brands and trust.

• Extended sales and marketing arm of the business and you only pay when they make a booking.

• Price your product to include average commission and you can broaden your target market.

Distribution

Understanding your customers research, buying behaviours and channel preferences will ensure you can make your product available to the right customer, in the right channel, with the right message, at the right time and price.

Who to work with?

Customers have multichannel habits

Distribution Channels

• Tour Operators • Visitor Information Centres • Wholesalers• Inbound Tour Operators • Travel Agents• Online Travel Agents

What do they do?

• Provide a booking service• One-stop shop for consumers • Package products and experiences • Give customers choice• Provide customer service and on ground support• Market Destinations and Products • Provide Multiplication Effect

Distribution Indirect

Stage 1

VIC’s

Tour Operators

Packages

Stage 2

Agents

OTA

Wholesalers

Stage 3

Inbound Tour

Operators

Overseas Wholesalers

Domestic Distribution

Note: Commission levels simplified. Commission levels can vary for each intermediary (up to 5%).

Online Distribution

• OTA commission’s vary 10-25%• Significant Reach & Ranking • Sell on price and volume• Instant global distribution • Research OTA target market and

operational models

Tourism Product

Website Online Travel

Agents Meta-search

Channel Manager

Traditional Distribution International

Note: Commission levels simplified. Commission levels can vary for each intermediary (up to 5%).

Tourism Product

Inbound Tour Operator

Wholesaler

Retail Travel Agent

Consumer

30%

20%

10%

Each intermediary keeps average 10% commission for the services they are providing.

Wine Distribution

Average Commission

Commission Type Sales Proportion Weighted Average

Direct sales 0% 40% 0%

OTA 15% 20% 3.0%

Retail 12% 10% 1.2%

Wholesale 20% 10% 2.0%

Inbound 25% 10% 2.5%

Inbound 30% 10% 3.0%

100% 11.7%

Average Commission

What are they looking for?

• Unique quality products and experiences• Sufficient inventory• Product consistency • High levels of customer service• Consistent pricing policies and rate parity• Easy communication• Fast and efficient turnaround of queries and

confirmations

Benefits of working domestic distribution partners

• Reach, Brand, Trust • Diversify domestic target markets • Package products and experiences • Market your product• Brochure and advertising campaigns• Manage bookings, complaints, payments• Customer service support• Provide training and famils

Benefits of working with ITO’s

• Yield, Diversification, Lead Times • Balance seasonality, mid-week • Manage financial risks• Reduce complexity of international markets • Remove language barriers, time zone differences • Provide sales & customer support in various languages• Understand international target markets and their needs• Attend trade shows and sell Australian tourism products • Keep abreast of trends and share opportunities

• Channel managers allow to efficiently manage multipleonline distribution partners

• Automatic or ‘Opt In’

• Reservation, property, tour operations management

Channel Manager

Tourism Product

Website Online Travel

Agents Meta-search

Channel Manager

Channel Manager

Source Image: Stryber

Ch

ann

el M

anag

er

Rate parity can be defined as maintaining consistent rates for the same product in all online and offline distribution channels. It can form part of a legal agreement with a distributor.

Rate Parity

Meta Search is growing

Source: Hotelminder

Define your Goals and Objectives for Distribution

Research and Define your Key Distribution Partners

Getting ready

• Positive track record• Set rates well in advance• Add average commissions to your nett rates• Research and identify distributors • Consider using a Channel Manager• One page summary your key selling points • Easy to book and sell

Getting ready

• Keep track on rates provided• Honour rate parity • Offer famils• Make contacts, provide fact sheets and rate cards• Including distribution partners on

email/newsletter list• Build solid long-term relationships

Key Take Outs

• Determine your distribution goals• Know your target markets and segments • Research best suitable distribution partners• Average the commission and monitor • Cater to your customers preferences • Build long-term relationships • Continuously optimise channels

Don’t forget your direct channels Website, Search and Social!

Things to remember

• Tourism is Global and Competition is everywhere • The World of Travel is Digital • Tourism Marketing and Distribution key to success • Tourism is a People Industry • Collaboration and Partnerships critical • Network, Network, Network • Brand and Reputation Management

Strategy, Marketing and Education for Tourism

Siggi Frede MBAStrategy & Marketing Consultant0434 074 [email protected]