Travel agencies constantly search for fruitful partnerships to reach a wider audience and earn good revenue. Among all the collaborations available in the market, wholesale travel companies often prove beneficial for travel agencies and their businesses.
The global online travel market size is $658 billion and it is estimated to reach $807.88 billion by 2028. Now these numbers can be met only with the assistance of adequate resources. By partnering with a wholesale travel company, travel agencies not only save time but also deliver quality travel packages to a large audience spectrum. Let us dig deeper into how travel agents can partner with wholesale travel companies to expand their reach and earn higher revenue.
What are wholesale travel companies?
Before going further, it is essential to understand wholesale travel companies. These are b2b organizations that purchase travel products in bulk from different service providers at relatively lower prices. These products and services are sold to travel agents.
Wholesale travel companies can provide travel products as individual entities or they also consolidate them into different travel packages. These companies act as a connecting bridge between travel agencies and travel suppliers like hotels, airlines, car rental providers, etc. Here is what a wholesale travel company can help you with:
- Hotel rooms
- Airline tickets and cruise passes
- Attractive tourism packages
- Car rentals
Increased travel agency reach with wholesale travel companies
A travel agency’s revenue directly depends on the number of successful bookings it makes during a season. These bookings heavily rely on the agency’s reach. By collaborating with a wholesale travel company, travel agents enter a broader market. Below are some strategies that help bring more customers in collaboration with wholesale travel companies.
1. Premade packages
Creating a travel package for different destinations is not a cakewalk. It requires a lot of research and digging. Travel agencies can say goodbye to these hectic sessions as they can now offer premade packages to their customers. Wholesale travel companies sell well-crafted and affordable travel packages for a distinct audience. Whether a traveler wants a soothing trip to an island or prefers a refreshing trek trip, these packages are created for varying needs and preferences.
2. No supplier bargaining
Travel agencies must stay in constant contact with multiple suppliers to grab the best deals for their customers. This is time-consuming and challenging because travel agents cannot simultaneously handle numerous suppliers. This is where a wholesale travel company enters the scenario.
Since the wholesaler already discusses everything with the supplier, the travel agency no longer needs to spend time bargaining. This not only saves time but brings discounted and affordable deals for the travel agency.
3. Better discounts
Wholesale travel companies purchase services and products from suppliers in bulk. This gets them attractive discounts and the overall cost of these services turns out to be very low compared to their market prices.
Customers love discounts and low-price travel packages. When a travel agency provides these services at relatively cheaper prices, it gains customer loyalty. This often leads to referrals, hence enhancing the agency’s reach among its audiences.
4. Marketing support
One of the common collaborative marketing practices in the modern travel industry is that wholesale travel companies give out co-branded marketing literature. These can be in the form of folders, handouts, and anything that a travel agency can use to advertise its packages. These materials are professionally done and assist in presenting a proper and professional look to potential customers.
5. Personalized packages
Wholesale travel companies usually conduct a thorough and data-backed analysis of travelers based on their demographics and preferences. This allows them to create personalized packages specifically customized to meet the demands of varying customers. This practice saves the travel agency’s time and effort, sparing it for other essential business operations.
How to select a reliable travel company?
1. Sign an agreement
Always partner with a wholesaler who agrees to sign a contract. This agreement should clearly mention the decided commission rates, mode of transaction, refund and cancelation policy, etc. Having an agreement in place leads to a transparent collaboration, which acts in the interest of both parties.
2. Feedback from fellow agents
Travel agencies should gather feedback on a particular wholesale company from their fellow agents. Travel professionals who have previously worked with the wholesaler will give useful insights into their reliability and credibility.
3. Cost analysis
Run a quick market check to find out the standard industry rates. This will help you to partner with the wholesaler that best matches these rates.
Key takeaways
Partnership with Wholesale travel companies adds immense value to a travel agency’s business by expanding its reach. Wholesalers have numerous contacts, customer databases, and other resources that help them craft personalized packages for travelers.
Collaborating with a reputable and reliable wholesaler brings higher sales for travel agencies. This allows them to offer premium packages and valuable services at the market’s best prices.
Wholesale travel companies FAQs
Wholesale travel companies are b2b service providers that buy travel products from suppliers in bulk and sell them to travel agents.
Professionals who want to establish a profitable business can try creating their own wholesale travel company. They should have strong connections with the suppliers.
The rates are mutually decided by the wholesaler and travel agency. They can vary based on your business requirements and prospects.
Developing partnerships and connections can add some good wholesalers to a travel agency’s list. This can be done by attending industry events and directly reaching out to wholesalers through their business websites.
Yes, wholesalers and travel agencies sign a mutually agreed contract to protect the interests of both parties.
Pratyush Kumar Srivastava is a seasoned expert in B2B travel writing with years of experience in the industry. With a deep understanding of the intricacies of travel technology, supplier relationships, and market trends, Pratyush offers valuable insights to help businesses optimize their travel booking strategies. Passionate about innovation and efficiency, he is dedicated to guiding travel agencies through the complexities of modern distribution channels to achieve growth and success.
