The Destinate Growth Pyramid: Distribution

Make it easy for the right people to sell you

You have a great experience, your marketing tells a clear story and your guests leave with lovely things to say. But there is another question to ask: how does your next customer actually book you?

They might find your website and book directly. They might ask their hotel for a recommendation, use an online booking platform or leave their entire New Zealand itinerary in the hands of a travel advisor on the other side of the world.

Each of those routes gives your business a different opportunity to secure a booking.

In the last Growth Pyramid article, we looked at Brand and Marketing: helping people understand why they should choose your experience. The next layer is Distribution, which connects that interest with the places and people customers use to plan and book.

For a small operator, the challenge is deciding which channels deserve your time, what they need from you and how they will support the business you want to build.

Start with the customer you want more of

Before signing up to another platform or sending your rates to every agent you can find, think about who you want to attract and how they organise their travel.

A visitor booking something to do tomorrow may use a very different route from someone planning a special New Zealand holiday six months ahead. A private family group might book through an inbound tour operator, while a couple already staying nearby might take advice from their accommodation host.

The product matters too. A scheduled sightseeing experience with instant availability may fit comfortably into an online marketplace. A private experience requiring a conversation about timing, interests and special requests may need a more personal sales process.

Start with the visitor and work back towards your business. Where are they making decisions? Who do they trust? Can those people find you, understand you and book you?

That gives you a much more useful starting point than simply joining a channel because another operator is on it.

Give every channel a job

Your own website, local referral partners, online travel agencies and travel trade partners can all contribute to your distribution mix.

An online travel agency, often shortened to OTA, lets customers compare and book experiences through its platform. An inbound tour operator, or ITO, puts together travel arrangements within New Zealand for overseas clients and travel sellers.

You do not need to work with every type of seller. You do need to understand what each partnership could help you achieve.

Perhaps you want more advance bookings, more visitors outside your busiest months or better access to travellers seeking private experiences. Perhaps your first opportunity is much closer to home, through accommodation providers whose guests regularly ask what to do nearby.

Be clear about the job before adding the channel. Otherwise, it is very easy to collect listings, logins and rate agreements without knowing whether any of them are moving the business forward.

Make your experience easy to sell from a distance

Imagine a travel advisor trying to fit your experience into a client's itinerary between a morning departure from Rotorua and an evening arrival in Wellington.

They need to know much more than whether you offer “an unforgettable adventure”.

Where does it start? How long should they allow, including check-in? Who does it suit? What is included? Are transfers available? What restrictions could affect their clients? How do they check availability and confirm a booking?

If those answers require three emails and a phone call, you have created extra work for the person trying to send you business.

A useful trade information pack should bring the essentials together:

• A clear description of the experience and who it suits.

• Location, departure times, duration and check-in requirements.

• Inclusions, exclusions and relevant age, fitness or access information.

• Current rates, validity dates and a clear explanation of the applicable commission or net rate.

• Booking instructions, cancellation terms and the right contact details.

• Good images and descriptions partners have permission to use.

Keep it current and make it easy to find the right version. A folder containing three rate sheets called “FINAL” is a surprisingly effective way to slow down a sale.

Build the cost of distribution into your pricing

Commission can be a sticking point for operators, particularly when they compare a trade booking with one made directly through their website.

Every channel has a cost. Direct bookings can involve advertising, website fees, booking technology and your own time. Trade and platform bookings may involve commission, contracted net rates and time spent supporting partners.

You need to understand what you retain from each booking after the relevant costs, and whether that return works for your business.

Build those considerations into your pricing before agreeing to sell through a channel. If your rates only work when every guest books directly, you may have very little room to develop other routes to market.

Be clear about which rate applies, what it includes and how payments work. Where several sellers sit between you and the guest, make sure you understand the commercial arrangement rather than assuming everyone is working from the same information.

A full departure is much more satisfying when the numbers work too.

Allow time for your product to find its place

One of the easiest ways to become disappointed with distribution is to expect every new partnership to produce immediate bookings.

A seller might already have a programme in market. Their clients may be travelling well into the following year. Your experience may need to be loaded into a system, introduced to reservations staff or considered when the next itinerary is developed.

Ask how the partner works and what their planning cycle looks like. That helps you set realistic expectations and provide useful support at the right time.

There can also be opportunities with specialist sellers, bespoke itinerary planners and one-off groups whose programmes have more flexibility. Think about where your experience solves a particular need, whether that is a private celebration, a special interest or a gap between two established itinerary stops.

Getting your rates accepted is one step. Helping a partner understand where your experience fits is what gives them a reason to use it.

Keep an eye on what each channel delivers

Once your channels are operating, review the results.

Look at the bookings and revenue they generate, what you retain, when those guests travel and how much work each booking requires. Consider whether the channel is reaching customers you would otherwise struggle to attract.

A partner sending a handful of well-matched private groups may be valuable even if another source sends more people. Equally, a listing that takes constant attention and produces little return may need a rethink.

Pay attention to concentration too. If a large share of your bookings depends on one platform or partner, consider how you would respond if that source changed.

Your distribution mix should develop as you learn what works.

A practical place to start

Write down your current booking channels, then choose the three most important to your business.

For each one, ask: who does it reach, what does it deliver and how easy have I made it for that channel to sell me?

You might uncover an accommodation partner who needs updated information, a trade contact waiting on rates or a listing that still promotes an experience you no longer offer.

Choose one improvement you can make this week. Start there.

Small operators can make a big impact when the right people know how to find, recommend and book them.

In the next Growth Pyramid article, we will look at Relationships and Trust: how consistent communication and follow-through turn an introduction into a partnership that lasts.