5 considerations for working with travel agents Travel organisers use lots of ways to get their products in front of the right customers. Many new companies focus on digital distribution. However, you should still think about working with a good old human travel agent. If you do, here are five things to consider.

In 2019, c20% of customers preferred human touch. Mainly when planning complex trips and paying big bucks. Pandemic/failures/conflict have increased their need for reassurance. If you only sell online you could be missing a lucrative, high-yielding slice of the market. 1

Travel agent networks come with a ready-made audience of qualified travel buyers. They help you get in front of large numbers of suitable customers quickly. That can mean efficient acquisition and scale without needing to invest heavily in performance marketing. 2

You’ll pay agents commission for their efforts. 8-12% is a good rule of thumb but the actual % will vary based on: • Product • Specialism • Volume vs targets For that to stack up, you'll need a pre-commission gross margin of at least 20-30%. Otherwise, you won’t cover your costs. 3

Like any relationship, you’ll need to invest to make it work. You'll need a sales team putting in regular face time. You’ll need to throw in educational familiarisation (fam) trips. Do it well and you'll win their loyalty. But, be sure to build those costs into your budget. 4

Appointing agents does come with some risk. If an agent fails without paying, you may still be legally bound to provide the trip. Protect yourself as much as possible by: • Monitoring credit terms. • Putting an agency • Ensuring you have suitable 5 agreement in place. financial protection (e.g. bond/credit, insurance/trust).

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