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The Ultimate Guide to working with Tour Wholesalers and Operators

By: Marium Farooq

March 3, 2023

Table of Contents

Tips and Tricks to establish partnerships with Tour Wholesalers and Intermediaries

As you grow your business and find ways to optimize your revenue, you will be intrigued to work with Tour Wholesalers and Operators. But it can be challenging to understand the pros and cons of working with them to ensure the relationship affects your business positively.

Here is everything you need to know about working with Tour Wholesalers and how to make the most of this amazing opportunity:

What is the difference between a Tour Operator and a Tour Wholesaler?

The terms are often used interchangeably but have different meanings. A Tour Wholesaler creates packages by combining multiple activities, most likely, transportation and other services, and sells them via a sales channel. A Tour Operator is an organization or a firm that combines components from different travel suppliers and sells directly to the public.

Why are tour operators and wholesalers important?

Tour Operators and Wholesalers can help you sell bookings in bulk which can help you grow and increase your profit. A sizeable segment of travellers are searching for all inclusive travel packages with the ease of booking. By building a relationship with tour wholesalers and operators, you can add an additional revenue stream to your business. It can also be a valuable distribution channel to scale your business and ensure that travellers have access to your activities and services.

What are the 3 main types of tour operators?

The three main categories of tour operators are Domestic Tour Operators, Inbound Tour Operators, and Outbound Tour Operators. 

• Domestic Tour Operators create inclusive tour packages specifically for domestic travellers. To simplify things, they are tour operators who provide travel packages within the traveler’s native country. They typically combine multiple tourism components to create packages e.g. a transport service and a set of activities to sell to travellers within the country boundaries. Domestic tour operators form relationships with other travel service and activity providers to create unique experiences for travellers in order to attain a larger share of the Domestic Tourism market.
• Inbound Tour Operators or Incoming Tour Operators handle all activities and arrangements for the tourists in the host country. The packages are created specifically for Groups and Individuals who are non-residents of the country traveling to the host country for leisure or business. An inbound tour operator typically works with local travel agents and businesses to curate a tour package or packages that covers their own country.
• An Outbound Tour Operator or Outgoing Tour Operator handles all travel arrangements and activities for International destinations. To simplify it further, the packages are created to take travellers to other International Destinations from their home country. They are tour operators who market their tours for international destinations, either for business or leisure travel. Typically, an outbound travel operator will work or partner with businesses, destination marketing organizations and online travel agencies in the destination country to design a tour package for their customers. Most Outbound tour operators specialize in particular destinations based on tourism trends, their distribution partners and their expertise in the destination country.

Tips for working with Wholesalers and Tour Operators:

Here are all the secret ingredients you need to form successful travel partnerships with Tour Wholesalers and Operators:

Research to Find the Right Fit

Every Travel Wholesaler and Operator is different. They have their unique distribution systems and they cater to different markets. You want to make sure that there is a connection between their offerings and yours, especially in terms of the market they are targeting and the tourism services they offer. 

Start off by conducting research and compiling a kit consisting of their product fact sheets, pricing information, distribution channels, terms and conditions and any unique information that you might require to set you off on the right foot. This information is instrumental in creating a long-term mutually beneficial partnership with Tour Wholesalers and Operators. 

Sell Unique Activities and Experiences

One of the most important pieces of the puzzle is to make your activities attractive for the Wholesalers and Operators. It is most likely that you will be working with multiple tour operators and wholesalers, and you want to make sure they find your offerings attractive and unique to add to their itineraries. 

Having authentic and unique experiences will not only increase the demand for your activities and bookings but will also appeal to Travel Operators to promote it better, more so than your competitors. According to recent research , the demand for unique experiences is on the rise and travellers all around the world are willing to pay a premium price for unique experiences. Adding an extra element to your offering to make it stand out might go a long way for your business to generate more revenue by putting you in a position to negotiate higher prices with the tour wholesalers and operators.  

Prepare to Manage Bookings in Advance and in Real-Time

Managing Bookings while working with Tour Wholesalers and Operators can be a huge challenge. First and foremost, an  Online Booking Software is essential to attract Tour Operators to work with you. It will simplify the booking process and will help your partners automatically earn their commissions. It will take away the mundane tasks of constantly emailing and calling to manage bookings and will replace it with a system that updates in real-time and makes everything effortless. 

Working with wholesalers and operators can put you in unique situations which will go beyond simple bookings and commissions. One of these cases is to create bookings in advance and then manage real-time bookings as they happen with time. There are many factors that might come into play, which is why you should invest in an online booking engine that can help you customize your Online Booking System and make it a seamless experience for yourself and other stakeholders.

For instance, a software like Zaui with 20 years of experience can help you connect with the best partners all around the world, allowing them to book instantly with zero human interaction. You will ultimately save time and make more money. 

Build Personalized Partnerships and Track Performance

What works in one country might not work in the other, the same is the case with Wholesalers and Operators since they can be located in different parts of the world and operate in different types of travel communities. Building personalized partnerships will help optimize your bookings and create custom marketing strategies to make better-informed decisions.

It is equally important to keep track of how each partnership is performing for your business. Tracking the performance will determine the next steps for your Marketing Plan and Communication. Additionally, it will provide insight into each market and ultimately boost bookings. 

One of the ways to achieve your goals and maximize your performance is to choose an Online Booking Software that can help you connect with the best distribution agents all around the world and track their performance.

Zaui Online Booking Software offers a Channel Manager platform and Reporting Dashboard that can help you connect with distribution partners and optimize growth. Request a Free Personalized Demo from our support team to help maximize your Bookings and Revenue!

You can also have a look at our website to hear our customer success stories or check our Buyer’s Guide as you search for the best online platform to work with Travel Wholesalers and Operators.

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How do travel and tourism distribution channels work?

By Kevin Tjoe — 29 Nov 2021

tourism distribution channels

Updated January 2023 – A tourism distribution channel refers to the stakeholders and methods involved in taking a tourism product from the supplier to the consumer. Typically, the chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. However, more components are involved across the entire distribution chain, including suppliers, wholesalers, resellers, and consumers.

By aligning your business with existing distribution channels, you connect with important stakeholders in the industry. This creates more efficiency in your marketing efforts and ultimately grows your tourism and activity business.

What is a distribution channel?

Tourism distribution channels are the avenues tourism products and services are made accessible to consumers. Typically, tourism products are sold directly by the primary provider or through a series of intermediaries. If brokers or travel wholesalers are involved, this is called indirect distribution. Consumers can access these products via various mediums, including traditional channels such as travel agents, government bodies such as information centers, and even other tour and activity operators .

How it works

While direct bookings may still account for a large part of business, branching out through additional distribution channels can help you to maximize your brand exposure, reduce risk and ultimately boost your bookings. Many distribution channels will have access to much larger marketing spend or broader customer bases. This can provide you with access to more exposure and quality bookings.

Typically speaking you’ll provide your availabilities to them, and they’ll, in turn, bring in bookings at a pre-agreed commission rate.

The chain of distribution

The chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. This process begins with the primary tour and activity provider all the way to the end consumers experiencing it.

Generally, there are four steps to the distribution chain:

1. Suppliers/principals

2. Wholesales

3. Resellers

4. End consumers

The distribution chain for a particular product can go through all of the steps depending on its distribution channel. For example, direct distribution won’t require wholesalers or resellers, as suppliers sell their products directly to consumers, whereas indirect distribution requires intermediaries.

Suppliers or principals include the primary providers across accommodation, transportation and car hire companies, attractions, and experiences. Examples include hotels, Airbnb hosts, airlines, and the attractions such as the Empire State Building.  

Wholesalers

Wholesalers develop packages of travel products for retailers to sell on, though in some cases they may actually sell directly to the consumer. These packages or itineraries might include tours, activities, accommodation, transport, and/or travel insurance.

Wholesalers can include: 

• Destination Management Organisations (DMOs) or inbound tour operators, such as government tourism boards or tourism authorities
• Global Distribution Systems (GDSs), are used by retailers such as OTAs to easily see an inventory of availability from tourism operators.

Resellers purchase and bundle experiences to be sold directly to the consumer. A common example includes traditional travel agents, which create personalized travel packages. However, online travel agents (OTAs) such as Expedia and Tripadvisor are more commonly used these days. They provide accessibility to a range of tourism products such as airline tickets, hotel bookings, tours and activities, and more.

Consumers are the most critical component of the distribution chain. That is because they are the end user of the product. The choices and decisions consumers make have a huge impact on the rest of the distribution chain. Trends in consumer behavior, or individual decisions all influence how tourism products are marketed and sold.

Advantages of tourism distribution channels

Broadening your distribution channels involve heaps of advantages. Here are the top five:

Connectivity

By aligning your tour and activity business with the broader industry, you can connect with important stakeholders across every step of the tourism distribution chain. Forming strategic partnerships with resellers and tourism platforms enables you to access a broader customer base. This provides you with a greater opportunity to increase your sales. 

Generating 100% of your revenue via direct marketing requires a great deal of investment in time and money. Existing distribution channels generally have larger marketing budgets that they can spend to attract more customers.

Typically, as the supplier, you’d only pay a fee when a booking has been made via their channel – making your marketing and sales costs predictable. This means you gain additional resources to expend on other areas of your business, such as improving your customer experience.

Flexibility

Given the wide array of potential partners, you have the freedom and flexibility to test and experiment with different methods of promoting your business. Plus, it’s more convenient for your customers to book your services through an array of trusted partners. This helps to increase customer loyalty and satisfaction.

Transparency

Utilizing existing distribution channels can make the entire booking process more transparent for both you and the end consumer. On the tour operator side, it provides you with a clearer understanding of your customer behavior and adjusts your marketing strategies for better outcomes. And on the customer side, information such as reviews displayed on your profile allows them to create informed decisions before choosing to book your services.

Accessibility

Promoting your tourism products via numerous distribution channels means that your customers can book your services where they like; when they like. Furthermore, your products and services will be found across multiple avenues – enabling a wider array of customers to book with you. In fact, operators are using an average of 14 distribution channels according to Arival’s Operator Insights 2021-2022 report.

What are the main types of tourism distribution channels?

There are many ways to get in front of customers, even more so since the rise of digital channels. From travel agents to mobile apps, tourism suppliers have never had more choices regarding promoting their products and services. There are four main distribution channel types. These include:

Traditional channels

Traditional distribution channels often refer to real-world marketing channels separate from online and mobile experiences. Indirect traditional distribution channels can include travel distribution services such as travel agents, tourism information centers, flyers and print/ digital brochures , promotional marketing services, and tour operators . Depending on your products and services, wholesalers can also make up part of your business’ traditional distribution channel. 

Online channels

In recent years, online travel agencies (OTAs) have dominated the tourism industry. These online experiences allow users to plan, book, and pay for personalized travel plans through an easy-to-use centralized platform. Often flights, hotel bookings, car hire , and local experiences can be bundled and purchased through a single site, making the process convenient and intuitive. These platforms can also be cheaper due to the relatively low cost of maintaining a website over a brick-and-mortar travel agency. 

Mobile channels

Like online channels, mobile distribution channels rely on digital platforms, such as apps, to promote and sell tourism products. Many popular mobile apps which centralize the tourism buying experience have cropped up in recent years. In addition, airlines, hotels, and other major suppliers have begun developing apps to improve customer loyalty and engagement. Other forms of mobile marketing can include SMS marketing, mobile advertising, and cold calling.

Direct channels

Direct marketing and sales channels include anything your business has direct control over and does not involve an intermediary. This type of marketing can occur through traditional, online, and mobile mediums. For example, direct online channels can include your website, direct bookings via a booking system, online chat assistance, and your social media accounts.

While direct marketing efforts via mobile can consist of sending promotional text messages to previous customers, cold calling potential customers, and sending personalized email marketing messages . More traditional measures may include brochures and flyers, a storefront, and salespeople.

Choosing the right tourism distribution channels

As a tour company, it’s essential to understand which distribution channels will achieve the most significant results for your business. While trial and error can bring results over the long run, understanding what makes a channel right for your business can accelerate your path to success. 

Identify target market

To understand whether online or offline marketing, direct or indirect distribution, or mobile versus online platforms are best for your business, you need to understand your customers.

Demographics such as age, country of origin, the number of travelers in a party, and the number of children arriving can greatly impact how you communicate and effectively sell your services. For example, an older demographic may be more likely to use traditional channels such as a travel agent, while a young family might be found via online and social media . First, check over your previous customers and try to pull out any obvious trends amongst your clientele, then research which channels best suit your audience.

Research channels

It’s important to research which channels are available to promote your services. But also, it’s essential to understand the reputation of your potential strategic partners. When engaging in indirect marketing, you are aligning your brand with your distributors, so choosing platforms and businesses which align with your values is important. It’s also essential to understand the costs and benefits of each channel and make informed decisions based on what will work for your business. 

Evaluate costs and benefits

Each platform and distribution channel will have different pricing models. Some may charge a flat fee for promotional services, others may purchase and resell your services, while others may charge a fee when you receive a booking. It’s essential to understand what level of return you can expect. If you are starting out, finding performance-based pricing options will allow you to pay as you go. Alternatively, flat fee services can sometimes provide a higher return as your budget can go directly to marketing spend.

Track performance

Once you choose one or more channels to distribute your services, ensure you track the performance versus how much it costs to attain them. By understanding the performance of your partnership, it enables you to eliminate ineffective channels and double down on your marketing efforts, thus, cutting you costs.

How can you manage all distribution channels easily?

It can take a lot of time to form and manage strategic partnerships with multiple resellers. Luckily, technology is here to help. A channel manager such as Rezdy Channel Manager can be accessed regardless of your booking system or size of business, and makes it simple to negotiate agreements, manage inventory, rates and manage commissions with a vast range of resellers, from local visitor centers to the big-name OTAs. Live availability of your tours, activities or attractions are visible from one dashboard, dropping the risk of pesky double bookings as well.

You can access the broadest reach of resellers in the industry, connect with desired resellers and easily distribute rates and availability in real-time. Rezdy is integrated with a number of alternative reservation systems and is continuously adding more, providing suppliers access to channel management tools, directly from their existing system. Suppliers with a custom built booking system can connect with Rezdy Channel Manager as well. For Rezdy booking software customers, channel management is included. 

Find out more about how Rezdy’s channel management platform can support your business .

Ready to  join the thousands of Rezdy customers that managed to grow their bookings by over 25% in 2022? Book a free channel manager demo with a product specialist to see how our products can fit the needs of your tour business. If you are interested in Rezdy’s booking software that includes channel management, you can start a free 21-day trail trial.

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Travel Wholesalers

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Go live with 7 suppliers in 3 days (6 for hotels & 1 flight aggregator).

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Our mission at Aktina Travel Group is to provide the best Hotel Distribution Service in the Greek Market and beyond. WBE has been an integral part of our success by providing a State of the Art software that caters for our operating needs . WBE’s Customer Support & Technological Solutions enable us to thrive in a highly competitive environment. After all these years of cooperation, we view WBE not as Software Provider, but rather as a Partner.

wbe.travel’s system is the right choice for a market leader like VAS DREAM. The system itself is already fast, has a quite good portfolio of suppliers and a smart design . The team is motivated and puts effort into their clients to succeed. They are transparent regarding their technology and do not leave you wondering how things are put together.

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Hotel Room Wholesalers: Who Are They and What Do They Do?

Wholesalers can play a major role in the way you distribute your hotel rooms and rates.

NB: This is an article from SiteMinder

Generally they will sit  between travel agents and travel suppliers  (in this case your hotel) to  act as a middleman, sourcing and acquiring products  (rooms, rates, packages) in bulk before  selling them on to various clients  (travel agents, OTAs, tour operators etc) where  buyers  (guests)  can access them . Wholesalers will never distribute your inventory directly to travellers.

Examples of wholesalers include AOTGroup, CN Travel, FollowMe2Africa, Helloworld Travel, and Hotelbeds but there are  100s your hotel could potentially work with.

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Every wholesaler will have a unique price for operators to participate in their programs and often different wholesalers will sell in different ways. For instance, some may sell rooms only while others will deal in packages. Some are even limited to specific property types or markets so it can be an interesting exercise finding wholesalers and deciding which operators to establish a relationship with.

Benefits of partnering your hotel with wholesale travel suppliers

Wholesalers can offer opportunities for hotels to access a more diverse and unique range of guests.

An optimal hotel distribution strategy will include a healthy mix of direct and third-party bookings, with a broad variety of potential revenue streams. Wholesalers can provide a powerful level of reach that your hotel usually can’t achieve alone, including being able to more easily attract international travellers. With wholesalers selling to online travel agents and retail agents, no stone is left unturned in the mission to get your property in front of as many eyes as possible.

Many wholesalers specialise in providing access to a wide range of markets that you could never reach directly, and working with them becomes almost a free form of marketing for your property.

There’s also the added benefit of being able to more accurately forecast occupancy patterns when you have a contract with a wholesaler, and you can be certain to always generate a specific volume of business and be paid in advance.

Disadvantages of working with accommodation wholesalers

Wholesalers are certainly a point of contention in the hotel industry and can have some frustrating drawbacks for property and revenue managers.

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Different terminologies for hotel wholesalers in the travel industry

A wholesaler is a third-party marketplace that sources hotel inventory (room nights, rates, hotel amenities, packages) in bulk from hoteliers, and accommodation providers and then sells them to travel sellers such as OTAs, travel agents, DMCs, and tour operators. Travel suppliers offer hotel rooms and hotel content (hotel address, room images, amenities), which is then shared with the travel sellers. From a B2B perspective, wholesalers play a prominent role in connecting travel suppliers (hoteliers) and travel sellers (OTAs, DMCs). 

Some wholesalers focus on working in niche markets or specific hotel types, while others buy all types of hotels and distribute them globally. Through wholesalers, hotels generate more sales and OTAs get hotel products in bulk at a cost-effective price. Interestingly, wholesalers do not sell or distribute hotel inventory directly to travelers.  

But, any novice in the hotel and accommodation sector can easily get confused by the complex distribution channel. Along with that, wholesalers are coined with various names that can confuse more about the already complicated hotel distribution system. Here we are to help you know the different names of wholesalers. 

11 different names of wholesalers   

• Hotel suppliers  
• Hotel merchants   
• Bed banks 
• Consolidators   
• Hotel brokers 
• Hotel aggregators 
• Hotel vendors  
• Demand partners 
• Hotel providers 
• Hotel banks 
• Hotel distributors 
• Hotel suppliers  

Wholesalers are also called as hotel suppliers in North Americas. Hotel suppliers play a prominent role in sourcing and acquiring hotel products in bulk and selling them to hotel buyers such as OTAs, tour operators, DMCs, etc. 

• Hotel merchants  

Long before the evolution of the internet, wholesalers were named hotel merchants. Hotel merchants would sell hotel inventory offline to their networks, which was considered a reliable selling platform for accommodation providers. 

• Bed banks  

Bed banks are online version of traditional wholesalers and been a part of the hotel distribution for last 20 years. They are B2B platforms that contract supply directly from hotels and accommodation providers in bulk. Wholesalers are named bed banks mostly in European and UK market. 

• Consolidators  

Hotel consolidators are businesses that buy hotel rooms or accommodations in bulk and resell them at discounted rates to their customers. They don’t have direct contracts as bed banks but function in a similar fashion. 

• Hotel brokers  

Wholesalers are popularly known as hotel brokers in USA and Mexico. The business operations of hotel brokers are the same as consolidators and thus, sometimes hotel brokers are also called consolidators. 

• Hotel aggregators  

In the APAC region, wholesalers are commonly named hotel aggregators who became popular in the mid-2000s. Their business model is slightly different from wholesalers; however, they are middlemen in the hospitality industry that rents hotel rooms on lease and takes care of the marketing and operational functions of the hotel.  

Wholesalers are also universally known as hotel vendors, selling hotel products to travel buyers such as OTAs, DMCs, TMCs. It’s worth mentioning that hotel vendors are often confused with hotel amenities vendors; however, both vendors are highly different in their business. 

• Demand partners  

Wholesalers in the travel industry are also popularly called demand partners in the USA. They work with accommodation providers and operate similarly to the traditional wholesalers of the hospitality industry. 

• Hotel providers  

Hotel providers is another popular name of wholesalers in the B2B marketplace of the USA. They deal with hotel products such as hotel rooms, availability, room rates, amenities and have direct contracts with the hotels. 

• Hotel banks  

Wholesalers are also commonly known as hotel banks in different regions of the USA. They work like bed banks, buying hotel rooms in bulk and selling to OTAs, tour operators, etc., in bulk at a reduced price. 

• Hotel distributors  

In some regions of the USA, and Europe, wholesalers are also known as hotel distributors. These intermediaries operate as wholesalers negotiating special discounted rates with accommodation providers and selling it to OTAs, DMCs, tour operators, etc. 

Wholesalers are considered essential to the travel industry because they are the link between hoteliers and OTAs, metasearch engines, tour operators, DMCs, etc. Wholesalers provide the products and services that travel sellers use to run their businesses, including room nights, rates, hotel amenities, packages and much more. In every region across the globe, the wholesalers are named differently, but their business model is like the traditional distribution. We hope the different names of wholesalers help you understand the competitive hotel distribution landscape better. 

About Vervotech:

Vervotech is a leading Hotel Mapping and Room Mapping API that leverages the power of AI and ML to quickly and accurately identify each property listing through the verification of multiple parameters. With one of the industry’s best coverage of 98% and an accuracy of 99.999%, Vervotech is quickly becoming the mapping software of choice for all leading global companies operating in the travel and hospitality industry. To learn more about Vervotech and the ways it can enhance your business in the long run contact us: [email protected]

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REFERRAL PARTNER AGREEMENT

THIS REFERRAL FORM EXECUTED BY REFERRAL PARTNER WITH COMPANY AND BETWEEN VERVOTECH SOLUTIONS PRIVATE LIMITED, HAVING ITS REGISTERED OFFICE AT FIRST FLOOR, FLAT NO. 101, E BUILDING, RICH WOODS, PLOT NO. 150, SECTOR 11, PCNTDA, CHIKHALI, PIMPRI CHINCHWAD, PUNE, MAHARASHTRA, 411019, IN, (“THE COMPANY”) AND YOU AS AN INDIVIDUAL REFERRAL PARTNER OR ANY SOLE PROPREITOR, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP, PRIVATE LIMITED COMPANY OR PUBLIC LIMITED COMPANY OR ANY OTHER BUSINESS ENTITY EXECUTING THE REFERRAL FORM (“THE REFERRAL PARTNER”) IS GOVERNED UNDER THE TERMS OF THIS REFERRAL PARTNER AGREEMENT (“AGREEMENT”). PLEASE READ THIS AGREEMENT CAREFULLY. BY CLICKING “ACCEPTED AND AGREED TO” REFERRAL PARTNER AGREES TO THE AGREEMENT APPLICABLE TO THE REFERRAL FORM.

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APPOINTMENT REFERRALS

Appointment. Company hereby appoints Referral Partner, and Referral Partner hereby accepts such appointment, as Company’s non-exclusive referral partner for the marketing and promotion of Services and the referral of leads for the sale of Services, as further set forth in this Agreement.

Scope of Authority Referral Partner's sole authority shall be to (a) market and promote Services as set forth in this Agreement, and (b) provide sales leads to Company for Company to contact in its sole discretion. The Parties agree that Company will directly enter into agreements with customers for the provision of Services to such customers.

DUTIES AND RESPONSIBILITIES OF THE REFERRAL PARTNER

Prior to undertaking any solicitation efforts of a prospective customer or client ("Prospect”) relating to the services or products or offerings of the Company as set out at https://vervotech.com/vervotech-affiliate-program ("Services”), Referral Partner shall submit a referral form, in a format shared by the Company ("Referral Form”), for written approval of the Company. The Referral Partner agrees to provide the necessary information, data and materials as may be requested by Company in respect of the Prospect. Referral Partner shall fill out a Referral Form and shall provide Company with the names of the Prospect to which Referral Partner intends to refer to the Services). If the Prospect is a large business entity, Referral Partner shall specify the name of division of such large entity in the customer list.

If a Prospect is approved by Company as a potential customer, Company will confirm such acceptance or rejection of such Prospect in writing via email to Referral Partner (“Referral Date”). Notwithstanding anything to the contrary, the Company will be entitled to accept or reject a Prospect at its own discretion, without providing any justifications or reasons in relation to the same. For the avoidance of doubt, Company reserves the right to decline to enter into a transaction with any prospect for lack of creditworthiness or for any other reason. Prospect which are not approved by Company are considered out of scope of Referral Fee. In the event Company does not notify Referral Partner of acceptance of the Prospect, it shall be deemed to be rejected.

In case Company notifies Referral Partner of its approval of a Prospect, the Referral Partner will provide assistance to the Company in establishing contact between the Prospect and the appropriate contact at Company, without any additional costs.

If the foregoing activities result in the Prospect entering into and executing a formal customer agreement with Company (hereinafter, a “Qualifying Transaction”), Referral Partner shall be entitled to a Referral Fee subject to receipt of amount invoiced to the customer for sale of Services through Qualifying Transaction (hereinafter, a “Qualified Sale”) and subject to the other conditions set forth under this Agreement; provided, however, that such Qualifying Transaction is consummated no later than six (6) months following the Referral Date.

A Prospect may not qualify as such, if, as on the Referral Date: (a) it is an existing customer of Company; (b) it has previously been contacted by Company, Company’ s affiliates or any other agent, reseller, vendor who markets Company’ s products and services; (c) it has previously been introduced or referred to Company as a potential prospect by a third party or (d) it is parent, subsidiary or affiliate of Company.

RESPONSIBILITIES OF THE REFERRAL PARTNER

Limited Authority Referral Partner will make no representations, warranties or guarantees on behalf of Company. Referral Partner has no authority to distribute or resell Services, or to make any commitments, agreements, or to incur any liabilities whatsoever on behalf of Company. Company will not be liable for any acts, omissions to act, contracts, commitments, promises or representations made by Referral Partner hereto. Referral Partner's activities under this Agreement shall be at its own cost and risk. Referral Partner shall not, without prior approval from Company, submit proposals, accept orders, negotiate and conclude contracts, and/or alter, vary or modify in any manner any of the terms and conditions of Company' s offer/ proposal / contract.

Assistance. Referral Partner shall make best efforts in performance of its responsibilities under the Agreement and provide reasonable support to Company.

Quarterly Meetings. Referral Partner agrees to meet, either in person or via teleconference, no less frequently than once every calendar quarter to discuss the status of the relationship contemplated herein and emerging opportunities and as directed by Company from time to time.

Training. Company shall have no obligations to provide the Referral Partner any training regarding the Services. Upon request of Referral Partner and in case the Referral Partner is an organization, Company shall make good faith efforts to provide sales training focused on the marketing and promotion of Services to Referral Partner employees, at REFERRAL PARTNER’s own cost.

Subcontracting. Referral Partner shall not subcontract any of its obligations under this Agreement.

Competing Products and Business Practices. During the term of this Agreement, Referral Partner shall promptly inform Company of Referral Partner promotion, marketing, or distribution of any product or service offering similar functionality to Services. Referral Partner (a) shall conduct its business under this Agreement in a manner that reflects favorably upon Company, Services, and Company's goodwill and reputation, (b) shall not engage in illegal, deceptive, misleading, or unethical trade practices, and (c) shall not, and shall not permit any of its subsidiaries or affiliates, or any of its or their respective directors, officers, managers, employees, independent contractors, representatives, or agents to, promise, authorize, or make any payment, or otherwise contribute any item of value, directly or indirectly, to any third party and in each case, in violation of the applicable anti-bribery or anti-corruption law.

Data Protection and Privacy. In the performance of the services set forth herein Referral Partner may receive or have access to personal data of the Company and its personnel. Referral Partner agrees to comply with the terms set forth in this Agreement, in its collection, receipt, transmission, storage, disposal, use and disclosure of such personal data. Referral Partner agrees to ensure compliance with applicable laws, rules and regulations, including but not limited to laws, rules and regulations related to personal data protection and data privacy. To the extent the Referral Partner will share any personal data with the Company, the Referral Partner shall be responsible for obtaining informed consent from such individuals for the processing of their personal data. The Referral Partner agrees to take all necessary steps to ensure compliance, including but not limited to executing appropriate contractual agreements as may be necessary as per applicable laws.

REPRESENTATIONS AND WARRANTIES

Representations and Warranties. Referral Partner represents and warrants that (a) it has the full corporate right, power and authority to enter into this Agreement and to perform its obligations hereunder, (b) the execution of this Agreement and the performance of its obligations hereunder does not and will not conflict with or result in a breach (including with the passage of time) of any other agreement to which it is a party, and (c) this Agreement has been duly executed and delivered by such Party and constitutes the valid and binding agreement of such Party, enforceable against such Party in accordance with its terms. Referral Partner further represents and warrants that it shall comply with all applicable data privacy laws while performing its obligations under the Agreement, and that it has all rights necessary to provide the Referral Form to Company for Company’s use pursuant to this Agreement. Referral Partner specifically represents and warrants that it has procured from all data subjects whose personal information it is disclosing to Company an explicit consent to disclose their personal information to Company for use in contacting them for marketing and/or other business purposes.

GENERAL DISCLAIMERS- EACH OF COMPANY AND REFERRAL PARTNER ACKNOWLEDGES AND AGREES THAT, IN ENTERING INTO THIS AGREEMENT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, IT HAS NOT RELIED UPON ANY WARRANTIES, EXPRESS OR IMPLIED, AND THAT NEITHER PARTY HAS MADE ANY REPRESENTATIONS, ASSURANCES, OR PROMISES THAT COMPANY WILL RECEIVE ANY NEW REFERRED CUSTOMERS OR NEW BUSINESS OR THAT REFERRAL PARTNER WILL RECEIVE ANY REFERRAL FEES AS A RESULT OF THIS AGREEMENT. COMPANY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHICH ARE PROVIDED AS-IS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, ORAL OR IN WRITING, ARISING UNDER ANY LAWS, INCLUDING WITH RESPECT TO ERROR-FREE OPERATION, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

In consideration of the Services provided by the Referral Partner in accordance with the Agreement, Company will pay to the Referral Partner as per the Referral Fee specified below, which shall be Company’ s sole payment obligation.

Referral Fee: For any invoices issued pursuant to Qualified Sales received by Company from customer during the referral period, Company shall pay Referral Partner a Referral Fee as per the % (mentioned on the referral Page) of the amount actually collected by Company from customer as a one-time Referral Fee.

Company shall make payment of undisputed invoice raised by Referral Partner within Sixty (60) days of the date of Company' invoice to customer for the Qualified Sales.

Company shall not pay or reimburse Referral Partner for any expenses related to this Agreement, unless expressly agreed to by Company in writing, before such expenses were incurred.

Limitation on Referral Fee:

Company will not pay more than one (1) Referral Fee in connection with any given Qualified Sales.

Referral Partner will receive the Referral Fee only as one-time fee.

Referral Partner will not be entitled to receive any Referral Fees for any subsequent services which are beyond the first transaction.

A renewal of a Qualified Sale shall not be considered a new Qualifying Transaction and shall not entitle Referral Partner to any Referral Fee.

Referral Fee shall be paid only when the actual invoicing amount have been collected from Qualified Sales. Referral Partner shall not be entitled to receive payment of Referral Fees for Qualifying Transactions remaining unpaid.

LICENSES AND OWNERSHIP

Company Marks. Subject to the terms and conditions set forth in this Agreement and solely for the purposes hereof, Company grants to Referral Partner a non-transferable, non-exclusive license, without right of sublicense, to use the Company trademarks, service marks, and logos as approved by Company (the “Company Marks”) to perform its obligations set forth in this Agreement. The use of all Company Marks, including placement and sizing, shall be subject to Company’s then-current trademark use guidelines, if any, provided by the Company. If the Company Marks become, or in Company’s opinion are likely to become, the subject of an infringement claim, Company may at its option modify or replace the Company Marks and require Referral Partner to cease use of the allegedly infringing Company Marks. Referral Partner shall promptly provide Company with samples of all materials that use the Company Marks for Company’s quality control purposes. If, in Company’s discretion, the Referral Partner’s use of the Company Marks does not meet Company’s then-current trademark usage policy, Company may, at its option, require Referral Partner to revise such material and re-submit it under this Section prior to display, or release of further materials bearing or containing such Company Marks. Except for the right to use the Company Marks set forth above, nothing contained in this Agreement shall be construed to grant to Referral Partner any right, title or interest in or to the Company Marks, and all right, title, and interest in and to the Company Marks shall be retained by Company. Referral Partner acknowledges that Company asserts its exclusive ownership of the Company Marks and the renown of the Company Marks worldwide. Referral Partner shall not take any action inconsistent with such ownership and further agrees to take all actions that Company reasonably requests to establish and preserve its exclusive rights in and to the Company Marks. Referral Partner shall not adopt, use, or attempt to register any trademarks or trade names that are confusingly similar to the Company Marks or in such a way as to create combination marks with the Company Marks.

Company Materials. Subject to the terms and conditions set forth in this Agreement and solely for the purposes hereof, Company grants to Referral Partner a non-transferable, non-exclusive license, without right of sublicense, to distribute the Company Materials exactly as provided to Referral Partner by Company to perform Referral Partner’s obligations under this Agreement.

Ownership. As between Referral Partner and Company, Company retains all right, title, and interest to (a) the Company Marks, (b) the Services, any of its products, material or pre-existing intellectual property rights (c) the high-level description of the Company Products and the Company Materials, and (d) all Intellectual Property Rights related to any of the foregoing. There are no implied licenses under this Agreement.

No Intellectual Property Rights. Parties agree that no intellectual property rights are conceived or developed under this Agreement. If any intellectual property rights are conceived or developed, the intellectual property rights will vest with Company, unless otherwise agreed by the parties.

CONFIDENTIALITY

In connection with this Agreement, “Confidential Information” means all data and information of a confidential nature of Company disclosed by Company to the Referral Partner under this Agreement, as well as information that Referral Partner knows or reasonably should know that the Company regards as confidential, including business practices, software, technical information, future product/services plans, programming/design techniques or plans, know-how, trade secrets, prospects, customers, end users suppliers, development plans or projects, and services. Confidential Information may be communicated orally, in writing, or in any other recorded or tangible form.

Confidentiality. Referral Partner shall maintain in confidence all Confidential Information disclosed to it by the Company. Referral Partner shall not use for any purpose outside the scope of this Agreement, or disclose to any third party such Confidential Information except as expressly authorized by this Agreement. To the extent that disclosure is authorized by this Agreement, the Referral Partner shall obtain prior agreement from its employees, contractors, agents, and consultants to whom disclosure is to be made to hold in confidence and not make use of such information for any purpose other than those permitted by this Agreement. Referral Partner shall use at least the same standard of care as it uses to protect its own most confidential information (and in no event less than reasonable care) to ensure that such employees, contractors, agents, and consultants do not disclose or make any unauthorized use of such Confidential Information. Referral Partner shall promptly notify the other upon discovery of any unauthorized use or disclosure of the Confidential Information. Notwithstanding any other provision in this Agreement to the contrary, the obligations set forth in this section 7 shall survive any termination or expiration of this Agreement for perpetuity.

Exceptions. The obligations of confidentiality contained in this section 7 shall not apply to the extent that it can be established by the Referral Partner by competent proof that such Confidential Information:

was already known to the Referral Partner, other than under an obligation of confidentiality, at the time of disclosure by the Company;

was generally available to the public or was otherwise part of the public domain at the time of its disclosure to the Referral Partner;

became generally available to the public or otherwise became part of the public domain after its disclosure, other than through any act or omission of the Referral Partner in breach of this Agreement; or

was disclosed to the receiving Party, other than under an obligation of confidentiality, by a third party who had no obligation not to disclose such information to others.

Authorized Disclosure. Notwithstanding any provision to the contrary, the Referral Partner may disclose Confidential Information (a) to the extent required by law or any governmental authority, or (b) on a “need to know” basis under an obligation of confidentiality to its legal counsel or accountants, provided, that such Referral Partner shall to the extent practicable (and except to the extent it would jeopardize the filing or prosecution of letters patent) use commercially reasonable efforts to assist the Company in securing confidential treatment of such information required to be disclosed. Prior to disclosing any Confidential Information under this section 7 Referral Partner shall take reasonable steps to give the Company sufficient notice of the disclosure request for the Company to contest the disclosure request.

Referral Partner shall indemnify, defend, and hold Company harmless from and against any and all liabilities, losses, damages, costs, fees, and expenses (including reasonable attorneys’ fees) resulting from or arising out of any Claims based on allegations that (a) Referral Partner breached any obligations including with limitation Confidential Information, representation or warranty contained herein, or has breached any applicable laws, rules and regulations, or (b) Referral Partner made a representation or warranty regarding Company or the Services that is inconsistent with the written high-level description of Services provided to Referral Partner by Company, or is otherwise unauthorized by Company.

Indemnification Procedure. An indemnifying party hereunder shall be liable for any costs and damages to third parties incurred by the other party which are attributable to any such Claims, provided that such other party (i) notifies the indemnifying party promptly in writing of the claim, (ii) gives the indemnifying party the sole authority to defend, compromise or settle the claim, with prior approval of the Company and (iii) provides all available information, assistance, and authority at the indemnifying party’s reasonable request and at the indemnifying party’s reasonable expense to enable the indemnifying party to defend, compromise, or settle such claim. Any indemnifying party hereunder shall diligently pursue any defense required to be rendered hereunder, shall keep the indemnified party informed of all significant developments in any action defended by the indemnified party, and shall not enter into any settlement affecting the indemnified party’s interests without the prior consent of the indemnified party.

LIMITATION OF LIABILITY

COMPANY SHALL NOT BE LIABLE TO REFERRAL PARTNER OR ANY THIRD PARTY FOR ANY INDIRECT DAMAGES INCLUDING TOWARDS COSTS OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, HOWEVER CAUSED, AND WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCTS LIABILITY OR ANY OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE MAXIMUM AGGREGATE LIABILITY OF COMPANY FOR DIRECT DAMAGES FOR ANY REASON SHALL BE LIMITED TO AMOUNTS PAID BY COMPANY IN RESPECT OF THE QUALIFYING SALE . THESE LIMITATIONS WILL APPLY NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL PURPOSE OF ANY REMEDY.

NON-SOLICITATION OF PERSONNEL

The Referral Partner shall not engage or hire as an employee or engage as independent contractor, Company’ s employees or independent contractors during the term of this Agreement and for a period of one (1) year following expiration or termination of this Agreement except as may be mutually agreed in writing.

TERM AND TERMINATION:

Term. The term of this Agreement shall be one (1) year from the Effective Date unless terminated earlier in accordance with the provisions of this Section. This Agreement shall renew automatically for additional one-year terms unless one Party provides the other written notice no later than thirty (30) days prior to the expiration of the then-current term of the Agreement of its intention to allow the Agreement to expire at the end of such term.

Termination for Breach. Either Party may terminate this Agreement for cause resulting from the material breach of this Agreement by the other Party by providing the breaching party written notice of such material breach and the intention to terminate for cause. The Party receiving such notice shall have thirty (30) days to cure such material breach. If at the end of such thirty (30) day period, the breach has not been cured to the reasonable satisfaction of the Party seeking to terminate the Agreement, the Agreement shall terminate.

Termination for Convenience. Either Party may terminate this Agreement for convenience upon ninety (90) days’ written notice.

Effect of Termination; Duties of the Parties Upon Termination. Upon any termination or expiration of this Agreement, Referral Partner shall (a) refrain thereafter from representing itself as a promoter or marketer of Company Products, or as a referral partner of Company, (b) immediately cease all use of any Company Marks, and (c) return to Company the Company materials and Confidential Information and all tangible items in Referral Partner’s possession or under its control containing Confidential Information of Company. Upon any termination or expiration of this Agreement, Company shall return to Referral Partner all tangible items in Company’s possession or under its control containing Referral Partner’s Confidential Information. Upon any termination or expiration of this Agreement, all licenses granted under this Agreement shall terminate.

Survival. Any clauses which by their very nature survive termination of the Agreement, will survive.

MISCELLANEOUS:

Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. As used in this Agreement, the singular shall include the plural and vice versa, and the terms “include” and “including” shall be deemed to be immediately followed by the phrase “without limitation.” The captions and headings in this Agreement are inserted for convenience and reference only and in no way define or limit the scope or content of this Agreement and shall not affect the interpretation of its provisions.

Governing Law and Dispute Resolution: This Agreement will be governed by and construed in accordance with the laws of the India, without reference to its conflict-of-laws principles. The Parties shall resolve any difference or dispute arises out of this Agreement by way of negotiations. If such negotiation process fails, then all disputes arising from or related to this Agreement shall be resolved before exclusive jurisdiction of courts in Pune, India.

NOTICES: All notices including hereunder shall be given in writing by hand delivery, courier service or email at the addresses set forth below:

If to Company

If to REFERRAL PARTNER

Attention: Sanjay Ghare

Email: [email protected]

Address: 3rd Floor, Amar Tech Centre, Sakore Nagar, Viman Nagar, Pune, Maharashtra 411014

Non-Waiver: A party's failure or delay in enforcing any provision of the Agreement will not be deemed a waiver of that party's rights with respect to that provision or any other provision of the Agreement. A party's waiver of any of its rights under the Agreement is not a waiver of any of its other rights with respect to a prior, contemporaneous or future occurrence, whether similar in nature or not.

Captions: The captions in the Agreement are not part of the Agreement, but are for the convenience of the parties. References to Sections are to sections of this Agreement.

Counterparts. Any documents signed in connection with the Agreement may be signed in multiple counterparts, which taken together will constitute one original.

Severability: In the event any term of the Agreement is held unenforceable by a court having jurisdiction, the remaining portion of the Agreement will remain in full force and effect, provided that the Agreement without the unenforceable provision(s) is consistent with the material economic incentives of the parties leading to the Agreement.

Relationship between the Parties. The relationship of Referral Partner and Company is that of independent contractors. Regardless of the use of the word "partner" in the title of this Agreement, neither Party is, nor shall be deemed to be, a partner, joint venturer, agent, or legal representative of the other Party for any purpose. Neither Party shall be entitled to enter into any contracts in the name of or on behalf of the other Party, and neither Party shall be entitled to pledge the credit of the other Party in any way or hold itself out as having authority to do so. No Party shall incur any debts or make any commitments for the other, except to the extent, if at all, explicitly provided herein.

Assignment. Referral Partner shall not assign or transfer this Agreement, in whole or in part, whether by operation of law or otherwise, or delegate any of its obligations hereunder, without the express written consent of Company. Subject to the foregoing, this Agreement shall be binding upon the successors and permitted assigns of the Parties. Any assignment in violation of the foregoing shall constitute a material breach of this Agreement and shall be null and void.

Force Majeure. Neither Party shall be liable for any failure or delay in fulfilling the terms of this Agreement due to fire, strike, war, civil unrest, terrorist action, government regulations, acts of nature or other causes which are unavoidable and beyond the reasonable control of the Party claiming force majeure.

Entire Agreement. The Agreement constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings, and agreements, whether oral or written, between the Parties respecting the subject matter thereof. Parties agree that, their engagement with each other is on non-exclusive basis and either Party is free to appoint any third party for performance of their respective obligations.

Electronic Record. This Agreement is an electronic record in the form of an electronic contract formed under Information Technology Act, 2000 and rules made thereunder and the amended provisions pertaining to electronic documents / records in various statutes as amended by the Information Technology Act, 2000. This Agreement does not require any physical, electronic or digital signature. This Agreement constitutes a legally binding document between the Subscriber and the Company.

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Referer's Information:

Referral information:, referral details:.

Pravin Mahadik

Chief Financial Officer

Pravin Bandu Mahadik is an ICMAI fellow and accomplished Cost and Management Accountant (CMA) with over a decade of experience in accounts and finance.

As a leader, Pravin has worked across various financial domains, including commercial operations, accounts and finance, auditing, taxation, MIS, transfer pricing, and export management.

He consistently introduces and implements systems to fortify financial control and improve Vervotech’s net organizational efficiency.

Marvel Puri

Chief Revenue Officer

As chief revenue officer (CRO), Marvel is responsible for every process at Vervotech that generates revenue. He has been instrumental in connecting different revenue-related functions, from sales, customer success, pricing, and revenue operations. His focus-driven approach to improving sales performance, and creating great product and pricing strategy, and delivering customer satisfaction has helped Vervotech to acquire 100 clients within a short stint of 2 years.    

With the experience of over 15+ years in sales and business development at SaaS-based organizations, Marvel has flourished throughout his career by creating and leading experienced and diverse teams. To Marvel, growth has not only been to hit quotas but is broad and holistic: open new paths to revenue and build the processes to get there.

Ganesh Pawade

Ganesh is a Problem Solver and a Thought Leader. Throughout his 13 yrs professional journey, he helped businesses to identify their platform areas, define solutions and architecture, and make a more technically-informed decision on their current and future business as well as the technology roadmap.

His passion for good code often results in him being engaged in animated discussions with his team of architects and engineers, pushing them to think beyond what is possible. His specialties include Solution Architecture, Full stack specialist, AWS, Azure and Google cloud.

Dharmendra Ladi

Dharmendra Ladi has been instrumental in positioning Vervotech as the “World’s Best Mapping Provider” and is focused on transforming how the industry presents accommodation data to its customers. With his 14+ years of experience in travel and innovative technologies, he is the principal architect behind designing Vervotech’s AI-driven products that are today helping its clients worldwide do business seamlessly.    

He leads new product development. Under his leadership, Vervotech has is credited with going from 0 to 100 customers within 2 years of business establishment. Dharmendra is also an inspiring thought leader, and regularly speaks at large scale events, webinars and has been interviewed by multiple media houses.

Sanjay Ghare

CEO & MD

Sanjay brings over 16+ years of entrepreneurial, general management, and senior executive experience with proven expertise in business development, corporate strategy, and product & program management. Sanjay, being an Industry veteran, and an influencer, leads and drives Vervotech’s vision of “Organizing World’s Accommodation Data.” Before he founded Vervotech, he was a VP of Tavisca Solutions, where he took the started SaaS division and grown with customers in  more than 15 countries.    

With his business acumen, Sanjay is on the trajectory of revolutionizing the accommodation data segment. He’s also a member of the Forbes Technology Council and often puts actionable growth strategies into perspective in his Forbes column.       

Anurag Mittal

Chief Marketing Officer

Anurag Mittal is a seasoned technology executive who has led multiple marketing teams at SaaS-based organizations. At Vervotech, Anurag is responsible for marketing and strategy formulation and setting up a growth-oriented marketing & prospecting team. Anurag comes with an experience working with Organizations like Deloitte and ACCELQ, where he led the marketing initiatives for their SaaS product lines and has worn many hats including devising marketing strategies for business growth, managing GTM with alliances and partners, conceptualizing and orchestrating marketing campaigns, end-to-end event management, and demand generation activities to deliver a qualified sales pipeline.    

He has been strategic face for the launch of Vervotech’s website and digital presence and have led several winning campaigns that has led to successful brand development and customer acquisition.    

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Rohit Shukla

Chief Product Officer

As Vervotech’s Chief Product Officer, Rohit is responsible for the product strategy and teams working to advance Vevotech’s position as a leading accommodation data company for OTAs, bed banks, DMCs, and Tour operators.

Rohit has been in the technology space for the last 15+ years, working with companies at different stages of growth within Travel, E-commerce, and FinTech Industries. In his previous roles, he drove product strategies for start-ups and SMEs and was instrumental in building platforms and product lines that generated $900 million in revenues and half a million paid customers. The products included flights, hotels, car rentals, activities & vacation packages.

Archana Garg

Financial Advisor

Archana has more than 15 years of experience in finance and operations management. Archana is proven leader in building and scaling companies as a result of her focus on financial strategy and operational excellence. She is motivated by understanding the customers she serves, and providing value at all levels of a business while building strong relationships with her colleagues.

She is a Chartered Accountant and is responsible for driving the Vervotech’s overall financial strategy, including the growth plans. Her experience navigating high growth companies, developing new business strategies and overall operational mindset delivers meaningful results for growth stage of Vervotech.

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The travel distribution system

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Distribution channels and consumer purchasing behaviour varies from market to market, so you need to understand the structure of the distribution system specific to your target markets before attending a trade show.

How does the distribution system work?

The travel distribution system is a complex, global network of independent businesses. This network includes a series of distributors or intermediaries, who play a specific role in the development, promotion and purchasing process of Australian tourism experiences.

Online technology and company mergers have transformed the tourism industry, with an increasing amount of crossover in the roles and functions of various sectors of the distribution system. Businesses engage a mix of distribution partners to reach their  target consumers.

The traditional structure of the distribution system includes Inbound Tour Operators (ITOs) based in Australia; wholesalers based overseas and international retail travel agents. However, this varies considerably from market to market. For example, it is not uncommon for an inbound tour operator to be part of a larger company that may also operate a wholesale arm in an overseas market, or for a wholesaler to also operate the travel agencies that sell its packages.

Many traditional travel distributors such as wholesalers and travel agents take an online approach as well as offering their services from a retail shop front.

Both online and traditional distribution partners have the opportunity to work with each other and directly with products and customers. As the traditional distribution system continues to evolve, it is important to clearly understand the structure of the companies that you work with and their relationships with other organisations. 

Why work with travel distributors?

Travel distributors allow you to broaden your customer base far beyond the reach of your own marketing budget.

They are important to the inbound tourism industry as overseas consumers still heavily rely on the advice of local travel experts when planning and booking their Australian holiday, particularly in long-haul and emerging markets. Travel distributors can also provide market intelligence, insights and advice on a specific market. The travel distribution system covers all the channels through which an international traveller can buy your product. 

Inbound tour operators

An inbound tour operator (ITO), also known as a ground operator or destination management company (DMC), is an Australian based business that provides itinerary planning and product selection, and coordinates the reservation, confirmation and payment of travel arrangements on behalf of their overseas clients. They bring the components of accommodation, tours, transport and meals together to create a fully inclusive itinerary. ITOs are the link between Australian tourism products and the overseas travel distributors that buy them, including travel wholesalers, direct sellers, travel agents, meeting planners and event planners.

Wholesalers

Wholesalers are located in overseas markets and have traditionally provided a link between travel agents and ITOs or tourism product. Wholesalers purchase programs developed by ITOs or develop their own packages and itineraries for travel agents and consumers. These packages will usually offer transport, accommodation, tours and attractions. In some markets, wholesalers are also ‘direct sellers’ who bypass travel agents to directly target consumers. In other markets, there are no wholesalers in the traditional sense and travel agents perform both roles. Traditionally, travel packages are published in brochures and promoted and distributed via retail travel networks. Wholesalers may operate their own retail outlets or work with an established network of travel agents in their own country. Many wholesalers specialise in specific market segments such as adventure or the seniors market and many also have an online presence.

Retail travel agents

Retail travel agents offer wide distribution in prominent shop front locations and a convenient place for travellers to make bookings and buy holidays. Traditionally, retail travel agents have provided a link between the wholesaler and consumers. With the integration of distribution roles, the retailer may deal directly with ITOs or Australian-based products, particularly in Asian markets. Many retail travel agents belong to a larger chain of travel agencies or consortiums that use their combined resources to market the agency brand. In some countries, retail agencies may be operated by travel wholesalers, or may concentrate on particular market segments such as special interest or family travel. Many retail travel agents also have an online presence.

Online travel agents

Online travel agents (OTAs) specialise in online distribution and have no intermediaries – they deal directly with consumers and tourism product. Consumers can purchase a product or an entire holiday package online. Online distribution is less structured than the traditional travel distribution system. Commission levels vary, depending on how the site is operated.

Meeting and incentive partners

The business events sector is one of the highest yielding inbound tourism segments. Meeting and incentive planners organise and manage all aspects of meetings and events including conventions, conferences, incentives, seminars, workshops, symposiums, exhibitions and special events.

Meeting and incentive planners use a wide variety of venues, tour operators, accommodation, team building companies and restaurants. They look for unique travel experiences and require different support and facilities to leisure tourism. Meeting and incentive planners are also known as: Professional Conference Organisers (PCO); Destination Management Companies (DMC); Conference Managers; Event Managers; Incentive Houses; Travel Fulfillment Companies; and Special Project Managers.

How do I price my products for distribution system partners?

Travel agents, wholesalers and ITOs provide valuable distribution that you may never be able to secure on your own. Commission is only paid once a sale has been made. You must understand the difference between nett and gross (or retail) rates and protect your rates by providing the correct rates to each level of the distribution system.

Rates should be clearly marked as either gross (retail) or nett. Gross Rate = Nett Rate + Agent’s Commission. The gross or retail rate of a product is the amount that the consumer pays and should be consistent across all distribution channels.

For example, a customer should pay the same price if they book direct, via an international travel agent or via the internet. Consumers will not purchase the product from a travel agent in advance if they know they can purchase it directly from you at a reduced price. Agents will not promote and market your product if they know the consumer is not going to buy from them.

Please note: Information on commission levels is intended as a guide only. For further details on the information you need to include in your rates agreements to distribution partners please refer to the Fact Sheet –“Product & Rate Information”. For further details on how to distribute your products via these distribution partners please refer to the Tourism Export Toolkit .

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The Big Players of B2B Hotel Distribution

Discover the major players in B2B hotel distribution. Learn about key platforms and networks connecting hotels with travel agents and corporate clients.

Table of content:

What are Travel Management Companies (TMC)?

What is a global distribution systems (gds), what is a bed bank in the hospitality industry, what are the most popular bed banks, what is a wholesaler in the hospitality industry, why is contracting gds, wholesalers or bed banks beneficial for independent hotels.

In this article, we’re going to focus on Global Distribution Systems (GDSs), Bed Banks and Wholesalers; as we’re looking into corporate businesses and B2B Hotel Distribution .

If you’re confused as to the difference between this and B2C travel through Online Travel Agencies like Booking.com, Expedia.com or Airbnb.com, first read this article: What is the difference between GDS, OTA and Metasearch?

Before we get into the details of corporate businesses and B2B Hotel Distribution channels, it’s important to learn more about Travel Management Companies.

A TMC, short for Travel Management Company, is nothing but a travel agent that manages business travel arrangements for different companies and clients at a low cost. The reason behind delegating the task of travel procurement is simple - it saves companies both time and money.

Corporate travel providers, business travel agencies, and business travel management companies are just some other names of a TMC. These organizations/individuals offer companies that have any travel requirements complete access to comprehensive time and money-saving travel programs.

While most TMCs source room and flight inventory through popular GDSs, Bed Banks, and Wholesalers, they also sometimes connect directly with hotel chains on an individual basis.

A few examples of popular TMCs include BCD Travel, TravelPerk, SAP Concur, TravelBank, and American Express GBT.

GDS, short for Global Distribution Systems, are online network systems that distributed the cost and availability of different services in the tourism industry. These services can be anything, from airline tickets to car rentals to attractions to hotel rooms.

In other words, a GDS is nothing but a network of information that acts as a middleman between travel service providers like hotel chains and airlines and travel agents. It collects flight schedules, inventory, and prices from different service providers and allows travel agents to find services and book them.

The best thing about a GDS is that any travel agent or TMC can book all the available services from the same platform and with just one confirmation number. This also allows them to earn a commission on the bookings they make.

A GDS plays an important role in the distribution of a hotel’s inventory. Important information like amenities, availability and prices is distributed to a database of booking platforms, travel agencies, websites, etc. Owing to this, a hotel can expand its reach and cater to a wider audience.

To read more about GDS, see the article: Global Distribution System (GDS) - The Complete Guide for Hotels .

A Bed Bank plays an integral role in Business-2-Business distribution . A BedBank is essentially a wholesaler that purchases rooms from hoteliers in bulk and at a discounted or static price for different dates and then sells these rooms to Online Travel Agencies (OTAs), TMCs, and other travel aggregators.

On the supply chain side, Bed Banks provides hoteliers with an increase in business by giving them access to opaque distribution channels. An opaque distribution channel is one where the service or the price is hidden from the customer. A few examples of opaque distribution channels are retail travel agents, airlines, tour operators, point redemption schemes, etc.

Similarly, on the demand side, Bed Banks provides TMCs instant and complete access to thousands of accommodation options, along with rich data, travel ancillaries, and different connectivity solutions. They are key in providing TMCs with both simple XML connections, as well as powerful APIs.

Over the years, Bed Banks have grown steadily. This is because the business work at scale without any additional transactional risk. Several travel companies are becoming Bed Banks, including WebBeds and Expedia. However, since the network of accommodation suppliers is so high, both organizations hardly take up any space in the Bed Banks business.

• Optimizing occupancy, revenue or ADR
• Upgrading your software stack
• Solving distribution or/and tech issues
• Improving their hotel online presence

As mentioned above, Bed Banks have grown rapidly over the years. Some of the most popular Bed Banks in the travel industry are:

• AIC Travel Group
• Beds With Ease
• GoGo Vacations
• WelcomeBeds

and many more!

A wholesaler in the hospitality industry is a company that most often partners up directly with hotels by purchasing rooms that would be then resold on a B2B network. Typically, wholesalers sign a contract undertaking the task of selling a set of rooms for a fixed price during a particular time frame.

In other words, wholesalers act as an interface between a hotel and a travel agency, which then sells the rooms directly to customers. The entire distribution network consists of online travel agents, and the business model allows wholesalers to earn a profit through the markup price during resale.

Keep in mind that both hoteliers and wholesalers strive to keep the rooms of the hotel fully booked. For this, they often resort to specially negotiated room prices. Due to this, hoteliers may see a negative impact on hotel revenue management because the price of rooms should change with the demand.

What are the Most Popular Wholesalers?

The most popular wholesalers are Hotelbeds, Expedia.com (Expedia Partner Solutions, or EPS), Albatravel, All4go, HotelDo, GOGO Vacations and many more small and big local players.

One of the most beneficial outcomes that a hotel can get with an agreement with Bed Banks, Wholesalers, or GDSs is the increase in inventory distribution, and thereby sales.

Thanks to this partnership, a hotel can easily address and connect with a variety of businesses, including tourist offices, TMCs, OTAs, etc. This way, a hotel can enter several countries and markets, which would have otherwise been costly and difficult to enter. Here’s why:

• Global Distribution Systems and Wholesalers often invest heavily in distributing inventory to third-party providers, which is something that most hotels are unable to achieve.
• Furthermore, they can maximize B2C sales by creating advertising campaigns and marketing techniques that cater to a specific country or market. This means that GDSs and Bed Banks can optimally target and cater to every market and tailor essential elements like CTAs, activities, and language to the needs of the customers.
• The distribution of availability, prices, and content (including amenities, photos, menus, room types, utilities, and more) is done automatically via an API.

Continue reading about B2B Hotel Distribution on HotelMinder. Next stop: Global Distribution System (GDS) - The Complete Guide for Hotels

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9 Best Wholesale Travel Accessory Suppliers In (US/UK & China)

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Travel is an exciting and yet complicated thing to do. Airports and airplane companies have international luggage standards, and passengers need different travel accessories to help them travel in style and comfort.

According to the United Nations World Tourism Organization, there are 1.4 billion international travelers per year . This tells you that there is a huge market for travel if you are an online entrepreneur.

But where will you get your items for sale? Today I will share with you the 9 best wholesale travel accessory suppliers in the US, UK, and China.

1. Gem Imports

This is a company that is based in the UK , and it sells more than travel items. As a wholesaler, it also offers dropshipping services, but you can only dropship to UK and European destinations.

Here are some examples of items you can buy here:

• Luggage strap
• Inflatable back cushion
• Kids luggage tags
• Anti-mosquito wrist bands
• Neck pillow

In most cases, you have to buy per box. For example, the unit price of a dress bag is only £0.95. However, you need to buy one carton, which has 24 pieces. In total, you will pay at least £22.80.

On average, the delivery is between three to five business days. For returns, Gem Imports only accept faulty items. You cannot ask a refund just because you changed your mind.

If you think the item is damaged, you have to refuse the delivery and send it back. You need to report this problem to the management within five days, or you will no longer be able to ask for a refund.

2. Dina International

Dina International is from the UK, and it offers not just travel accessories for flying, but also for land-based travel.

Here are some examples of the items you can buy here:

• Luggage tags
• Heavy-duty bungee

Before you can make a purchase, you need to make an account. The delivery charge depends on the destination, and the company mostly delivers to the UK, Scottish Highlands, and Northern Ireland.

All payments are processed by Barclaycard and PayPal. The company accepts major credit cards .  

Dina International also ships internationally, but you will not be asked to pay during checkout. Instead, you will be prompted by the system to get in touch with their customer service department. You need to provide the details, and they will tell you how to pay for international transactions.

If you want to order in large quantities, you need to contact them first. The company representatives will give you a discounted price, and they will let you know if your order is available. Also, you can see the product physically if you visit their store in Cash & Carry in Leicester, UK.

3. Epic Traveller

This company is also from the UK, and it sells unique travel accessories for backpacking, winter travel, and regular travel.

Here are the items you can buy here:

• Webcam privacy cover
• Travel door alarm
• TSA padlocks

The company offers a 30-day money-back guarantee if you are not happy with your purchase. No questions are asked. Just send the item back and you will get a refund.

For shipping, the company offers same-day dispatch, and you have the option to pay between £0.97 and £5.25 for mainland UK deliveries. For international deliveries, the minimum shipping cost is £1.75.

Take note that the refund applies within 30 days after ordering, not 30 days after receiving the item. If what you want is a replacement, the company will cover the cost of shipping the item back to them.

On top of the refund policy, they also offer a 12-month warranty on the durability of their products. You can return any item if the product broke within 12 months.  

Related: 9 Best Cosmetics Wholesale Suppliers USA/UK/China

Based in the USA, Talus offers a wide range of travel accessories for flights. Talus has been in business since 1985. They also sell travel accessories for cars like backseat cooler and play station.

Here are some of the products that you can buy and sell:

• Eye patches
• Inflatable neck pillow
• Personal humidifier

The company offers refunds if the item you received is defective or damaged. To get a refund or a replacement, you need to contact them through email or by phone.

Apart from wholesale, the company allows entrepreneurs to create brick-and-mortar store accounts. However, they do not authorize sellers who sell on eBay, Amazon, and Walmart. This means that they do not dropship.

You need to apply and get approved before you can buy. During your application, you need to provide details about your brick-and-mortar store . Once approved, you will receive a wholesale price list and an instruction how to order and pay.

5. Kole Imports

Kole Imports is a huge company where you can find lots of travel items that you can buy or as little as $0.09. It is based in the US , and it offers a brochure that you can download.

Here are some examples of what you can buy:

• Luggage pouches
• Underwear bag
• Luggage scale
• Travel pillow
• Water-resistant bag

Kole Imports ships to over 100 countries. As one of the biggest wholesalers in the US, you can speak to a customer representative to get a better deal. The company has been around for 30 years, so you know that they are dependable.

For shipping, they have multiple options, and they will choose the most affordable one depending on your package destination. There is no mention on their website about returns and refunds, so it is best to call them or shoot them an email before you buy from them.

6. RockCow Factory Store

RockCow is a Chinese supplier for travel bags in AliExpress . The supplier’s rating is 100%, and it is rate as above average on Item as Described, Communication, and Shipping Speed.

This supplier specializes on the following products:

• Leather briefcase
• Leather travel bag

As you may have observed, most of the products of the supplier are made of leather. If you are an entrepreneur and you want to sell leather travel bags and accessories, this is one supplier that you should definitely look into.

RockCow has been in business for seven years. It also offers products with discount. Just click on the Sale Items link on its AliExpress store page, and you will see all items that are sold for up to 40% discount.

RockCow is a manufacturer for other branded goods. Many of its items are sold in Canada and the US. If you want to dropship on your Shopify store., they can also do it for you.

Related: 9 Best Wholesale Perfume Suppliers in US/UK/China

7. July’s Song

If you want to sell luggage, you have to look into the products on July’s Song. This wholesale travel supplier is found on AliExpress , and can service dropshippers internationally.

Here is a quick run-down of the company’s products for sale:

• Luggage suitcase
• Travel padlocks
• Clutch bags
• Anti-theft travel bags

July’s Song has been with AliExpress for three years. Its overall rating is 98.6%. It has above average rating on the other three metrics measured by consumers on the platform.

If you are a dropshipper, you can order one item at a time, and still pay affordable prices. Since the products are bulky, there is no free shipping offered, except for small purses and padlocks.

If you are a wholesaler, you can buy the items at lower prices. They also offer big discounts on shipping costs, and you will receive your wholesale shipment in as short as seven days. You are also entitled to a free return and refund if you file the complaint within 15 days from the date your received the goods.

With a rating of 97.4%, this store in AliExpress has been open for two years. It specializes in travel kits and travel organizers.

Here are some examples of the products you can buy:

• Make-up bag
• Hand-held manicure bag
• Hand-carry luggage
• Waterproof organizer

Depending on the size of the product, you can buy items from this seller and enjoy free shipping. For small bags that do not qualify for ePacket , you will pay at least $10 in shipping.  

You can partner with this supplier for dropshipping. They ship internationally. You can also buy their items at discounted prices from time to time. If you want to save money, you can contact the supplier and ask for a wholesale discount.

9. Shenbang

Also from AliExpress, Shenbang specialize in travel pillows. On this store, you can find inflatable and non-inflatable pillows.

Here are some examples of their products:

• Natural latex pillow for the back
• Orthopedic pillows
• Cervical spine memory pillow

With a rating of 99.8%, the seller has a perfect score of 5 Stars on all other seller metrics. Shenbang accepts returns with no questions. They also dropship, plus they offer free shipping.

The travel pillow supplier has a dedicated page for items on sale. Just go to its store in AliExpress and you will find this page where you can get up to 40% off on selected items. You can also take advantage of the coupons offered to first-time buyers.  

Wholesale Travel Suppliers Summary

Before choosing a supplier, make sure that you have listed down the specific niche that you want to serve. Travel is a big niche. You can sell luggage, pillows, blankets, and so much more. You need to pick a specific type of category before opening your store.

Once you have selected your niche, contact one of the suppliers that I recommend. Ask about bulk pricing and whether they are dropshipping or not. Finally, order the travel accessory and see how the wholesale travel supplier performs. Choose only the supplier who meets your standards.

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• 27 Online Jobs That Are Legitimate

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Best-Kept Secret: Using Wholesale Travel To See the World and Make Amazing Memories

March 13, 2019 by Andrea 2 Comments

Do you remember your family vacations as a kid?

I do. I remember our first family trip to the beach.

I remember piling into the mini van with way too many passengers and way too much stuff, pool noodles swinging across the back seat and hitting me in the head as we went over each bump in the road.

We stopped at Waffle House after driving all night long and I thought it was the best restaurant in the world. When we pulled up to the beach after 18 hours in the car, waves crashing into the shore, I thought it was paradise.

I remember the smell of the salt water, crab dinners with the family on the balcony and sand in our hair for days.

My parents didn’t have a lot of money, but they always made family vacation a priority. Any money they spent on vacation was completely worth it. I’m so grateful they did because those memories have stuck with me forever. And now, I get to create them with my own family

The Best-Kept Secret in Travel

We all dream of traveling more; of visiting places on our bucket lists and creating fun memories with our families. But travel gets expensive, especially when you bring the whole family along. Did you know the travel industry has a big secret they’ve been keeping for a long time? It’s called wholesale travel and until now, the general public has never had access to it.

When you search for hotels, cruises, and resorts on discount sites like Travelocity and Expedia, you’re  not actually getting the lowest price like you think you are. These sites have picked up all their deals from the wholesale travel market and then marked them up to make a profit.

Understandable, but how cool would it be to just get the wholesale price yourself? Well, guess what? Now you can!

It’s called a wholesale travel club and it allows you to gain access to all of the wholesale prices that Expedia and Travelocity do. But now YOU get the bottom line price, and not a middle man.

It’s super cool and helps you save tons of money on rental cars, hotels, cruises, vacation packages, excursions, and flights. Here’s how it works.

How Wholesale Travel Works

Have you ever wondered why hotels and flights that aren’t full don’t just drastically drop their price to fill them? Well, the truth is, they do. We just don’t see them.

When hotels have empty rooms they want to fill, they sell those rooms in something called the wholesale market.  This is a secret little nook in the travel industry where you can save tons of money on everything travel-related: cruises, rental cars, hotels, travel packages, flights, and more.

So why can’t everyone see these prices? The general public doesn’t have access to this wholesale market. In order to access them, you have to join what’s called a wholesale travel club . Think of it like a Costco membership or a Netflix subscription. To access those amazing chocolate coconut almonds or the hottest shows on TV, you have to be a member of have a subscription.

2 Ways To Access Wholesale Travel

A wholesale travel membership acts as much like booking sites you’re already using (Kayak, Expedia, etc.), but it grants you access to wholesale travel. These are the bottom-line prices. NO MARK-UP.

You log on, search for wholesale travel deals, and can even compare the prices to other popular booking sites in real-time. They have over 400,000 hotels, flights, rental cars, cruises and activities in their system (which, by the way, is growing daily).

There are two easy ways you can access this wholesale travel site:

1. Sign up for a membership:   This works similar to Costco or Netflix. To get full access to 100% of the wholesale travel savings, you’ll want to sign up for a membership (choose the first option in purple). There’s a one-time fee of $50 (yep, just one time) and then it’s only $25 per month, just like a subscription. You guys…that is a STEAL for the savings you will get! It’s a serious no-brainer. You can save up to 70% off of popular destinations worldwide, even Disney Resorts and 5-star hotels. Plus, you  can rack up travel rewards credit and earn FREE travel. The membership is completely worth it and will pay itself off with your first trip.

2. Get a free Buddy Pass : This is a totally free and no-risk way to try out wholesale travel. You create an account , access the site, and start searching for deals. The Buddy Pass is good for 6 months and you are able to book any and all travel you want during that time. The catch is that with a Buddy Pass, you only get half of the savings that members get. Still a great deal. Still better than other discount sites, so still awesome. And if you want to upgrade to get the full savings, you can do that at any time. Also to note: Buddy Pass members don’t have access to cruises and flights, whereas full membership does.

Examples of Savings

When we heard about the wholesale travel club, we knew we had to test it out extensively before we told you about it. (Which meant lots of travel, so don’t feel too sorry for us.) It’s crazy how much our team has saved on travel. Shelley booked the Ritz in Maui and saved $600 on her trip. That more than payed for her membership in one trip! Missy scored a 4-star hotel in Sedona, Arizona for spring break and saved $300.

One of our team members had already booked a trip to Hawaii before we’d heard of wholesale travel. She looked up her hotel (which she had already paid for through another booking site) and realized she would have saved $500 by booking through the wholesale travel club. $500!  In one trip, she would have paid for a year’s membership! The savings are real and they add up. All of our experiences with our wholesale bookings have been positive.

And if for some reason you find the same hotel cheaper elsewhere, you are credited back 110% of the difference. No questions asked. That’s pretty cool.

Sign Up Now

So start saving money on travel now!

Get ALL the savings here with a wholesale travel membership .

Try out the Buddy Pass for free and get access to half of the savings .

Either way, it’s a great decision. A win-win.

Start making your dreams of travel a reality. Get out there and start crossing off your bucket list. Explore new places, show your kids the wonders of the world, or just relax on a beach. We can’t wait to see where you go! Oh, and if you want to be the first to know about the latest travel deals, tips, and secrets, join our HowDoesShe Travel Group .

About Andrea

Andrea is mom to 6 blonde haired, blue-eyed babies and hundreds of cattle. City girl turned wife to a cattle rancher in the boonies, she’s slowly trying to prove herself as a pioneer woman. She enjoys reading, traveling (rather, dreaming of traveling), and legitimately wishes she were in the cast of the TV show ”Friday Night Lights.”

Reader Interactions

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March 14, 2019 at 10:49 am

I looked at the full membership package that you indicated was just $100 for sign-up and $30/a month thereafter (stating it was the purple option). However, when I clicked on the link you provided, there are only 3 options (none of them purple) with the cheapest option being $400 for sign-up and $40/a month. Am I missing something?

Michael says

March 24, 2019 at 8:28 pm

Not bad, but there are wholesale travel sites out there that cost nothing to join.

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22 Types of Travel Agencies Based on 4 Key Criteria

Travel agency definition

How many types of travel agencies exist.

The best way to understand the intricate design of the tourism industry is to observe the businesses that operate within it . Travel agencies are the cogs that keep travel machinery moving forward. However, not all travel agencies operate in the same way. Plus, these businesses often tend to go through operational and managerial changes driven by technology implementations and shifts in the best practices.

If you are planning to work with or in an agency, you need to know more about travel agencies in general. Staying tuned to the latest developments can be challenging. That’s why we decided to help you answer the ultimate question – “How many types of travel agencies exist?”  

Let’s start with the travel agency definition to lay a foundation for the information that’s to come.

The best way to understand a travel agency is to look at it as a private retailer . It is a business that specializes in selling travel products and services. At the core of travel agencies, we have a global distribution system (GDS). This commonly used agency software system plays a vital role in enabling agencies to check the availability and prices of accommodation and travel arrangements.

Two most commonly used travel agency definitions come from Airlines Reporting Corporation and SARC . The first one goes along the following lines:

“Travel agency is a business with the following functions: makes reservations, quotes fares, rates, arranges travel insurance, arranges travel tickets and accommodation, accepts payments, foreign currency, and documents.”

Here is the definition by SARC:

“Travel agency is a business that specializes in selling tourism products and tourism-related services to tourists and performs arranging transportation and accommodation, air ticket issuing, accepting payments, and providing additional specialized services.”

Travel agencies often work with vendors from whom they source travel products and enable direct, over-the-phone, or online booking for their customers. Their primary source of income comes from the commission rates the vendors give them. Without going into great detail, the commission rates are not uniform and depend on several factors. However, as you will see, some travel agencies act as intermediaries between vendors and other travel agencies. The primary source of income of these agencies is the services they provide to other agencies.

Travel agencies also differ in terms of the distribution channels they use. There are three main distribution channels available to travel agencies: online channels, strategic partnerships, and offline channels . To stay competitive, many agencies use more than one channel, often all three at the same time.

Now let’s see how many unique types of travel agencies are there.

There are dozens of types of travel agencies out there. The best way to understand each type is to have a classification system. That’s exactly what we decided to do. 

Below you can find different types of travel agencies based on the business model, business size, services, geographical coverage, number of outlets, level of specialization, distribution chain, type of vacations they offer, agency functions, and tourism flows.

Let’s start with some of the most basic classifications, including business model and size.

🧑🏻‍🤝‍🧑🏿 Travel agency types based on the number of travelers

Travel products don’t only differ in terms of destination and available amenities in the location. Some travel agencies prefer catering to individual travel needs, while others facilitate group travel. There are, of course, those that offer individual and group travel arrangements. There are three travel agency types based on the number of travelers.

FIT travel agencies

FIT stands for “foreign independent travel” or, a more modern term, “flexible, independent travel.” This is the most common type of agency you can find both online and offline . While they offer regular products, they also include tailor-made travel experiences to accommodate travelers’ individual needs and interests . The examples include:

• https://vacations.united.com/
• https://www.redtag.ca/

Group travel agencies

Group travel agencies, as the name suggests, specialize in group travel. They offer a number of group travel packages. The travel products they offer are often tailored for ten or more travelers. The agencies negotiate their travel products according to the size of the group . Some of them enable booking online. However, the majority offer services offline because some hotels tend to cancel the bookings if they detect a group . Here are a couple of examples:

• https://www.contiki.com/en-eu
• https://www.solresor.se/

FIT & Group travel agencies

FIT & Group travel agencies work with a wide range of travelers, including those who are interested in tailor-made experiences and those who prefer group travel. Their travel product portfolio is often quite big and diverse. The noteworthy examples include:

• https://www.appleleisuregroup.com/

🛒 Travel agency types based on the type of market

The famous question from Hollywood movies: “Business or pleasure?” brings us to our next travel agency classification. All travel agencies can be divided into two groups based on whether they sell leisure or business travel packages.

Leisure travel agency

As its name implies, a leisure travel agency specializes in selling holidays and leisure trips. They cater to the needs of customers interested in having fun, rest, and relaxation. Their itineraries can also include various activities ranging from excursions to local sightseeing. Here is an example:

• https://travel.aaa.com/

Business travel agency

Business travel agencies offer custom-tailored trip experiences to businesses. They help streamline sales presentations, conferences, and meetings, whether scheduled in a state or abroad. They cater to passengers traveling for working purposes and facilitate MICE and incentive travels . The two examples include:

• https://www.bcdtravel.com/
• https://www.amexglobalbusinesstravel.com/

🚛 Travel agency types based on the type of distribution

All travel agencies can be categorized into two big groups based on the type of distribution. There are those who source and cater their products toward businesses, so-called wholesalers, or B2B travel agencies. The other type of travel agency encompasses travel companies focused on B2C markets.

Wholesalers or B2B travel agencies

Wholesalers of B2B travel agencies distribute their products through other agencies . Their primary source of income is commission rates. They can either source products from other B2B travel agencies or create travel products of their own. There are several types of wholesalers depending on how they choose to do business.

Tour Operators

Tour operators are companies that specialize in creating complete travel products . Their products often include hotel rooms, transportation, and activities at the location, such as excursions. Tour operators exclusively distribute their products through agencies. Here are the examples:

• https://teamamericany.com/index.php/home/start
• https://www.gocollette.com/en

Bedbanks are companies that focus on distributing hotel inventory through different channels . However, over time their scope of services kept growing. Today, Bedbanks also offer transfers and various services in destinations . Here are a couple of examples so you better understand what Bedbanks are:

• https://www.hotelbeds.com/home
• https://www.webbeds.com/

DMC stands for a destination management company. As the name suggests, these are inbound travel companies . They create inbound travel products for specific destinations and distribute them across various B2B channels . The examples include:

• https://www.alliedtpro.com/
• https://galaxyvacations.com/

Wholesalers

Wholesalers operate similarly to tour operators. However, they don’t create travel products themselves . Instead, they source products from multiple Bedbanks, tour operators, and DMCs, and distribute them through B2B channels, mainly travel agencies . The examples of wholesalers include:

• https://www.jumbotours.com/
• https://www.bonotel.com/  

Travel networks

Travel networks are quite specific travel agencies. Their primary focus is on creating big travel agencies and travel advisor networks. Once the network is up and running, these travel agencies will provide all types of travel products to their partners and affiliates under exclusive terms and conditions. The examples include:

• https://www.travelleaders.com/
• https://www.allstar.travel/  

Retail travel agencies are the newest addition to the big family of different agency types. It is a new way of B2B distribution generated by Bedbanks . The goal is to provide products and services directly to travel agencies without the need to be a travel network . Here are some examples:

• https://www.bedsonline.com/home/en-df
• https://www.tboholidays.com/

Travel agencies or B2C travel agencies

Travel agencies or B2C travel agencies offer travel products and services directly to consumers. There are different travel agency types based on how they set up their business in terms of distribution channels, location, and dependency. Let’s see the most common types of B2C travel agencies.

OTA or an online travel agency is not every agency you can use to book travel packages online . These are big companies that sell directly to consumers . They offer a wide range of travel products, including hotels, air tickets, car rentals, tickets for shows, travel insurance, tours, and all kinds of land transportation. We are sure that you are familiar with the following two examples of OTAs:

• www.expedia.com  
• www.booking.com 
• www.edreams.com  
• www.despegar.com  

Physical offline travel agency

Physical offline travel agencies offer their services in person to consumers . Due to the shift to the online business model, the number of physical offline travel agencies continues to decrease . These agencies are mainly focused on providing personalized travel experiences to consumers. They provide advice regarding the best location to visit according to the travelers’ unique needs and expectations. Their offer also includes tailor-made itineraries and excursions. The examples include:

• www.pangea.com

Physical + online travel agency

Physical + online travel agency is a new type of business . These agencies offer most of their services online . However, they still have offices, so they can work with travelers in person, answer questions, or provide advice . The examples include:

• www.cvcviagens.com  
• www.viajesfalabella.com 
• www.almundo.com

Independent travel advisor

Independent travel advisors work as independent travel professionals . They don’t align with any particular company or work for one. Their number continues to increase worldwide, especially in the US market. Independent travel advisors provide personalized service to travelers. The examples include:

• https://www.asta.org/

Implants are travel professionals located within another company that has significant travel requirements . They often have a desk or entire office setup so they can meet the company’s travel demands and provide better services . The most noteworthy implants include:

Direct travel agencies

Due to the harsh competition and volatile markets, some businesses in the travel industry decided to offer their travel products directly to consumers through B2C channels . Such is the case with many hotels and airlines . Here are a couple of examples:

• https://www.deltavacations.com/
• https://www.latamairlines.com/
• https://www.wyndhamdestinations.com/
• https://www.viajaconviaja.com/

🛎️ Travel agency types based on the type of services

Finally, we come to a more specific classification of travel agencies. If you take a look at travel agencies only taking into account the type of services they offer , you can see that there are a number of different companies . With this in mind, we give you travel agency types based on the type of services they offer.

Regular services

Most commonly, travel agencies are focused on selling pre-designed products and services . They can sell those products and services on a regular or more exclusive basis . Here are two examples of travel agencies that provide regular services:

• https://www.grayline.com/
• https://www.gct.com/

Tailor-made

Tailor-made travel agencies develop specific itineraries travelers can’t find anywhere else . They often enable clients to create completely custom products and make their own itineraries. Tailor-made travel agencies are either contracting directly or via DMCs. The two examples include:

• https://www.intrepidtravel.com/
• https://www.evaneos.com/

Niche travel companies

Niche travel companies are focused on very specific demographics . They tend to study the particular needs and expectations of consumers in a demographic segment and create itineraries and experiences that reflect those needs. 

LGBT travel agencies specialize in LGBT travel and tailor-made vacations. They carefully create travel experiences to only include supplies that welcome everyone . These agencies also offer advice and adhere to the highest travel quality standards . Here are two examples:

• https://www.protravelinc.com/luxury-vacations/lgbtq-travel

There are also travel agencies that specialize in offering products tailored for students . They enable students and youth to experience the world. These agencies often offer exclusive travel deals emphasizing cheap hotels, tours, and flights . Here are two examples:

• https://acis.com/
• https://www.yes-trips.com/

Seniors have enough experience to know how to make the best use of the travel time. Travel agencies for seniors offer travel tours specifically tailored to the needs of seniors ensuring they are freed up of all their worries so they can enjoy the destination they choose. Here are some examples:

• https://www.goaheadtours.com/escorted-tours/senior-travel
• https://nationalseniorstravel.com.au/

Backpackers

Travel agencies for backpackers offer tailor-made backpacking travel experiences to people who enjoy this particular way of experiencing destinations. The examples include:

• https://www.backpackingtours.com/
• https://www.backandpack.com/

Travel Adventure

Travel agencies can specialize in travel adventures as well. They carefully source their products to ensure they pack enough adrenaline and that “wow” factor so they can attract consumers who prefer their travel to resemble an adventure. Here are examples:

• https://www.exodustravels.com/
• https://www.oattravel.com/

Ski travel agencies specialize in customizing ski and snowboard vacation travel packages . They are often focused on creating or sourcing packages in one specific location. The examples include:

• https://www.esquiades.com/
• https://www.skican.com/

Luxury travel agencies specialize in offering exclusive destinations, hotels, and activities. Their focus is on a rich clientele that reflects their product portfolio. They often offer tailor-made holidays and have special honeymoon offers. Here are a couple of examples:

• https://www.abercrombiekent.co.uk/
• https://www.virtuoso.com/travel  

When it comes to the travel agency types based on the type of service they sell, there can be many unique variations . 

Travel agencies can operate in many ways and play different roles in the distribution chain of travel products and services. To answer your initial question: 

“How many types of travel agencies exist?” There are more than 25 unique travel agency types depending on the segmentation you choose. 

However, it’s practically impossible for an agency to be of only one type. For instance, it can be an inbound, leisure, niche travel agency. Hopefully, our ultimate guide to travel agency types will help you better understand these companies in terms of how they operate and their role in the travel industry.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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wholesaling example, Top 8 Wholesaling Models

The Top 8 Wholesaling Business Models in Action

Wholesaling involves buying products from suppliers or manufacturers and selling them to business customers like retailers, industrial users or commercial clients. Wholesalers enable product availability and specialized distribution capabilities. This article examines 8 major wholesaling models with real world examples.

Food Service Wholesaling

Food service wholesalers source groceries and supplies for restaurants, hospitals, schools and other institutions. Leading firms like US Foods, Sysco and Gordon Food Service offer broad line distribution of everything from fresh produce to canned goods, baked items, beverages and janitorial supplies. Wholesaling enables efficient, predictable delivery to high volume food service buyers.

Example: Performance Food Group Company

Performance Food Group (PFG) is a major U.S. food service wholesaler with over 150 distribution centers supplying restaurants, schools, retailers and other commercial food establishments. They offer nationwide broad line supply chain capabilities delivering quality products where and when clients need them.

Auto Parts Wholesaling

Auto parts wholesalers distribute aftermarket replacement parts, accessories and tools to service and repair shops, dealers and auto parts stores. The largest players like Genuine Parts Company (NAPA) and Advance Auto Parts carry extensive inventories to serve automotive aftermarket demand efficiently through supply chains tailored to customers needs.

Example: Genuine Parts Company (NAPA)

GPC’s NAPA brand is a leading U.S. auto parts wholesaler with over 6,000 stores and 600+ distribution centers supplying independent auto parts stores and collision repair shops. NAPA has a vast distribution network with advanced inventory control and forecasting capabilities to ensure parts availability for service professionals nationwide.

Pharmaceutical Wholesaling

Pharmaceutical wholesalers manage distribution of prescription drugs from manufacturers to pharmacies, hospitals and health centers. McKesson, Cardinal Health and AmerisourceBergen represent over 90% of the market. Wholesaling enables safe storage, handling and delivery of pharmaceuticals through secure, cold chain distribution networks.

Example: AmerisourceBergen

AmerisourceBergen is one of the largest global pharmaceutical wholesalers distributing brand name and generic drugs from facilities with state-of-the-art automation and climate control. Wholesaling capabilities like inventory monitoring, data analytics and specialty drug distribution help ensure product availability and improve healthcare outcomes.

Office Supply Wholesaling

Office supply wholesalers aggregate stationary, tech devices, furniture, cleaning items and ancillary supplies used by businesses, schools and offices. Staples, Office Depot and W.B Mason are top players providing bulk discounted rates and consolidated ordering/delivery of all the products organizations routinely need.

Example: Essendant

Essendant is a leading national office essentials wholesaler formed from the merger of United Stationers and S.P. Richards. They distribute over 90,000 items including traditional office supplies, janitorial and breakroom items, technology solutions and industrial supplies to resellers and commercial end users.

Electronics Wh0lesaling

Electronics wholesalers efficiently distribute televisions, mobile devices, home appliances, accessories and consumer electronics from major brands to retailers and repair shops. Ingram Micro, Tech Data, D&H Distributing and Synnex dominate regional and global electronics distribution. Wholesaling enables channel efficiencies between manufacturers and stores.

Example: Tech Data

Tech Data ranked 109 on the Fortune 500 distributes products from over 1500 world class tech brands to customers in over 100 countries. Their efficient supply chain capabilities and specialized services provide vital support connecting major computing vendors with a network of over 150,000 resellers worldwide.

Industrial Equipment Wholesaling

Industrial wholesalers supply specialized products like motors, pumps, compressors and parts to enable manufacturing operations and facility maintenance. Leading distributors include Motion Industries, Applied Industrial Technologies and Kaman Industrial Technologies with over 2 million SKUs sourced from thousands of vendors to serve virtually any industrial component need.

Example: Motion Industries

With over 500 locations, Motion Industries has grown into a leading industrial parts and equipment wholesaler supplying maintenance and repair operations across North America. Their distribution capabilities and extensive product breadth Saves customers time and money by ensuring the right parts are available when needed to minimize downtime.

Floral Wholesaling

Floral wholesalers source fresh flowers domestically and overseas to florists, supermarkets, event planners and other commercial buyers. Providing efficient distribution of a highly perishable product, floral wholesalers like Equiflor, Florabundance and Kendall Farms offer overnight nationwide delivery of the freshest bouquets, arrangements and potted plants from growers worldwide.

Example: Equiflor

Equiflor is one of the largest floral wholesalers delivering fresh cut flowers to over 3000 florists and mass market accounts daily. With farms spanning three continents, they provide year round availability of thousands of flower varieties. Equiflor’s cold chain logistics ensures the highest quality blooms are delivered overnight to buyers across North America.

Wholesalers enable product availability, channel efficiencies and specialized distribution capabilities across industries. These examples illustrate the vital intermediary role wholesaling continues to play connecting suppliers, manufacturers and end user businesses.

The Decline of General Merchandise Wholesalers

General merchandise wholesalers distribute a wide array of products to retailers, from household goods to apparel. However, this non-specialized model is declining as retailers increasingly source directly from manufacturers. In the US, general merchandise wholesaler revenue dropped over 17% from 2012-2017 according to IBISWorld data. Similarly, Japan’s general merchandise wholesalers saw profits decline approximately 9% over the last decade reports Trading Economics. General wholesalers lack bargaining power compared to massive retailers. They also incur unnecessary costs by serving as middlemen between manufacturers and store shelves. As their value proposition weakens, general wholesalers will likely see further contractions.

Growth in Wholesale Medical Equipment Distribution

In contrast to general wholesalers, medical equipment distributors are projecting steady growth worldwide . This wholesale segment sells devices like implants , lasers, and MRI machines to hospitals, clinics, and labs. According to Verified Market Research, the global medical equipment distribution market size should reach $317 billion by 2025, expanding over 6% annually. Factors driving this growth include healthcare spending increases, aging populations, and chronic disease. Wholesalers add value through regulatory compliance, technical product support, and maintenance services. By specializing in a complex vertical, medical equipment distributors remain integral to healthcare supply chains.

Food Wholesalers Benefitting from Digital Acceleration

Food wholesalers represent another wholesale segment maintaining relevance through focus and adaptation. Though food wholesaling revenue dipped early in the pandemic , recovery is already underway. As restaurants and hospitality resume operations, demand for ingredients has climbed over 15% this year says IBISWorld. Many food wholesalers accelerated their e-commerce capabilities during COVID-19 to enable contactless purchasing. These digital investments make wholesalers more efficient partners as customer dining rooms reopen . However, food wholesalers cannot be complacent. Ongoing adoption of services like mobile ordering and virtual kitchens will reshape food supply chains long-term.

In summary, overly broad wholesalers struggle to add value in increasingly direct and digital supply chains. However, wholesale market share persists for specialized distributors incorporating value-added services and adapting to industry shifts.

https://dx.doi.org/10.2307/1247896

http://unstats.un.org/unsd/cr/registry/regcs.asp?Cl=9&Lg=1&Co=6

http://www.eu-lieferanten.de/

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