definition of wholesaler in tourism

What Is the Role of a Wholesaler in Tourism?

By Robert Palmer

Wholesalers are an essential part of the tourism industry. They play a crucial role in facilitating the distribution of travel products to retailers and consumers. In this article, we will explore the role of a wholesaler in tourism and how they contribute to the growth of the industry.

What is a Wholesaler?

A wholesaler is a company that buys travel products in bulk from suppliers such as airlines, hotels, car rental companies, and other travel service providers. They then sell these products to retailers such as travel agents or tour operators at a discounted price. The retailers then sell these products to consumers at a markup, making a profit in the process.

The Role of a Wholesaler in Tourism

Wholesalers are often referred to as intermediaries between suppliers and retailers. Their primary role is to purchase travel products in bulk from suppliers and resell them to retailers at a discounted price. This allows retailers to make a profit by selling these products at a markup to consumers.

Wholesalers also play an important role in facilitating inventory management for suppliers. By purchasing travel products in bulk, wholesalers help suppliers manage their inventory by providing them with a guaranteed market for their products.

Benefits of Working with Wholesalers

There are several benefits of working with wholesalers for both suppliers and retailers. For suppliers, working with wholesalers allows them to sell their products in bulk without having to manage individual sales themselves. This can save them time and resources while also ensuring that they have a consistent market for their products.

For retailers, working with wholesalers allows them to access discounted prices on travel products that they can then sell at a markup to consumers. This helps them make more profit while offering competitive prices to consumers.

Challenges Faced by Wholesalers

While wholesalers play an important role in the tourism industry, they face several challenges. One of the biggest challenges is the rise of online travel agencies (OTAs). These companies offer consumers direct access to travel products at competitive prices, cutting out the need for intermediaries such as wholesalers.

To stay competitive, wholesalers must continue to offer discounts and value-added services that cannot be found elsewhere. They must also maintain strong relationships with suppliers and retailers to ensure that they have a consistent market for their products.

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What is a Tour Wholesaler? Exploring the Benefits and Types of Tours

By Happy Sharer

Introduction

Planning a tour can be an overwhelming task. From transportation to accommodation, there are many details that need to be taken care of in order for the tour to be successful. Working with a tour wholesaler can help make this process easier and more cost-effective.

A tour wholesaler is a company that specializes in providing travel services to tour operators. They act as a middleman between the tour operator and the service providers, such as hotels, airlines, and ground transportation companies. Tour wholesalers provide tour operators with access to discounted rates on travel services, allowing them to offer more competitive prices to their customers.

An Overview of Tour Wholesalers: What They Are and What They Do

So, what exactly is a tour wholesaler? A tour wholesaler is a company that specializes in providing travel services to tour operators. They act as a middleman between the tour operator and the service providers, such as hotels, airlines, and ground transportation companies. Tour wholesalers provide tour operators with access to discounted rates on travel services, allowing them to offer more competitive prices to their customers.

Tour wholesalers are responsible for arranging all aspects of a tour, from transportation to accommodation. They also provide support services such as itinerary planning, ticketing, and visa processing. In addition, some tour wholesalers even offer specialized services such as cultural excursions and activities.

Exploring the Benefits of Working with Tour Wholesalers

Working with a tour wholesaler can offer many advantages to tour operators. Here are a few of the most notable benefits:

Cost Savings

One of the main advantages of working with a tour wholesaler is the potential for cost savings. Tour wholesalers have access to discounted rates on travel services which they can then pass on to tour operators. This means that tour operators can offer more competitive prices to their customers while still making a profit.

Increased Efficiency

Another benefit of working with a tour wholesaler is increased efficiency. Tour wholesalers are experts in the field and can handle all aspects of the tour planning process quickly and efficiently. This leaves tour operators free to focus on other aspects of their business.

Higher Quality Tours

Finally, working with a tour wholesaler can result in higher quality tours. Tour wholesalers are experienced and knowledgeable about the destinations they work in and can ensure that tour operators get the best possible value for their money.

How to Choose the Right Tour Wholesaler for Your Business

Choosing the right tour wholesaler for your business can be a daunting task. Here are a few things to consider when selecting a tour wholesaler:

Researching Different Tour Wholesalers

The first step in choosing a tour wholesaler is to do your research. Take the time to compare different tour wholesalers and their offerings. Read reviews and speak to past customers to get a better understanding of their services and reputation.

Understanding the Different Types of Tours Offered

It is also important to understand the different types of tours offered by tour wholesalers. Some specialize in certain types of tours, such as adventure or educational tours, while others may offer a more general selection of tours. Make sure to select a tour wholesaler that offers the type of tours you are looking for.

Assessing Tour Wholesaler Reputations

Finally, it is important to assess the reputation of the tour wholesaler. Look for customer reviews and feedback to get an idea of their level of service. Also, make sure to inquire about any additional fees or charges that may be associated with working with the tour wholesaler.

A Look at the Different Types of Tours Offered by Tour Wholesalers

Tour wholesalers offer a range of different types of tours, each with its own unique set of features and benefits. Here are a few of the most popular types of tours offered by tour wholesalers:

Adventure Tours

Adventure tours are great for those who want to explore new places and challenge themselves. Adventure tours typically involve activities such as hiking, rafting, and mountain biking, and often include overnight camping trips. Adventure tours are a great way to experience nature and push yourself to your limits.

Educational Tours

Educational tours are ideal for those looking to learn more about a particular destination. Educational tours typically include visits to museums, monuments, and historical sites. These tours are a great way to gain a deeper understanding of the culture and history of a place.

Luxury Tours

Luxury tours are perfect for those who want to travel in style. Luxury tours typically include stays in five-star hotels, gourmet meals, and private transport. These tours are ideal for those who want to experience the finer things in life.

Tips for Working Effectively with Tour Wholesalers

Working with a tour wholesaler can be a rewarding experience, but it is important to keep a few tips in mind in order to ensure a successful partnership:

Establishing Clear Expectations

It is important to establish clear expectations when working with a tour wholesaler. Make sure that both parties understand what is expected in terms of pricing, payment terms, and deadlines for delivering services. This will help ensure that the tour runs smoothly.

Making Sure You Get What You Pay For

Make sure that you get what you pay for when working with a tour wholesaler. Ask questions about the services being provided and read the fine print of any contracts before signing. This will ensure that there are no hidden costs or unexpected surprises.

Utilizing Technology for More Efficient Communication

Finally, take advantage of technology to communicate more efficiently with the tour wholesaler. Many tour wholesalers offer online booking systems, which can make the process of booking tours much faster and easier. Additionally, many tour wholesalers offer mobile apps that allow you to keep track of your bookings on the go.

Working with a tour wholesaler can be a great way to save money, increase efficiency, and offer higher quality tours to customers. However, it is important to do your research and select the right tour wholesaler for your business. Additionally, make sure to establish clear expectations, get what you pay for, and use technology to communicate more efficiently with the tour wholesaler. By following these tips, you can ensure a successful and rewarding partnership.

(Note: Is this article not meeting your expectations? Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)

Hi, I'm Happy Sharer and I love sharing interesting and useful knowledge with others. I have a passion for learning and enjoy explaining complex concepts in a simple way.

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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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Working with tour wholesalers: 9 tips for tour operators

By Rezdy — 7 Feb 2019

agent bookings   distribution   tour operator   wholesaler

Updated April 2023 – Expanding your distribution network and improving your online distribution strategy can greatly benefit both outbound and inbound tour operators , but it’s key to remember that success in the travel industry is not solely based on the quality of your product. Partnering with travel wholesalers can provide a valuable channel for reaching a wider audience and increasing bookings, but it’s important to strike the right balance between working with wholesalers and maintaining your own tourism profit margins .

These tips will help you develop relationships with the top businesses in the wholesale travel industry.

What is a tour wholesaler?

If you want to target wholesalers as a distribution partner, then you need to know exactly what they do within the travel industry.

The role of the wholesaler is unique, in the sense that they don’t work directly with travelers in the marketplace. Rather, a wholesaler will sell your tour products to retail travel agencies. In addition, they work with inbound tour operators to manage the specific details of itineraries. Essentially, B2B travel wholesalers help create all-inclusive packages for travelers to book. More and more travelers are now searching for comprehensive travel packages that include all of their experiences. By engaging with tour operators and travel wholesalers, it will be a valuable distribution channel for you to focus on.

9 tips for tour operators working with wholesalers

Here are nine tips for successfully working with B2B travel wholesalers.

Learn how tour wholesalers work

Learning how tour wholesalers work is crucial for tour operators who want to effectively partner with them and grow their business. Wholesalers act as intermediaries between tour operators and travel agents, and they often have established relationships with a wide network of agents who can help promote and sell the tours. By understanding how wholesalers operate, tour operators can better navigate the process of negotiating commission with travel agents and setting competitive pricing for their tours. 

Additionally, understanding how much travel agents make can help tour operators tailor their offerings to meet the needs and expectations of their target audience, ultimately leading to increased sales and a more profitable business.

Highlight the unique selling point of your tours

Wholesale tour operators are frequently searching for tours and activities that are both unique and authentic. These are the types of experiences that travelers are craving, and they want to be able to customize the itineraries. Not only that but having unique experiences will also be appealing to retail travel agents to better market the activity. According to Arival’s Path to Purchase September 2021 edition, the demand for unique experiences in 2021 has increased at drastic levels. More travelers are now searching for an experience that stands out and they’re willing to spend more for it.

When working with travel wholesalers, use online marketing techniques to showcase your products. Be sure to emphasize any value-added features that you include with the booking rate. Building unique experiences can be as simple as adding extra elements that your competitors might not do. For example, Offering lunch or dinner options along with a tour maybe that extra bit that will seal the deal.

Streamline your bookings online

Given the nature of their job, wholesalers will almost exclusively work with tour and activity operators who offer online booking. They are not going to have the time available to make phone calls or wait for e-mail responses. To attract the best wholesalers in the wholesale travel industry, you should implement an online booking system that simplifies the booking process. In addition, your online booking system should allow them to automatically earn their commission. This is, understandably, a priority of wholesalers.

For instance, an online booking software like Rezdy allows you to integrate and connect with multiple distribution agents. Once connected, they’ll be able to see live rates and real-time availability that allows them to book instantly. This removes the need to get in touch with you in order to process the booking. Once a booking has been processed, the commission rate you set will be automatically distributed to the agent. 

With a system like Rezdy in place, it’ll help both you and the wholesaler save time spent on processing orders. As a result, it will allow you to allocate your resources to more important areas of your business.

Set consistent rates for your tours

It’s imperative that you set consistent rates for your tours and activities, regardless of who is selling or booking them. For example, you can’t charge OTAs (online travel agents) one rate for your tours while switching up the prices on your website. When working with wholesalers, it is important to note that the commission rate may vary from one wholesaler to another. This may impact your profit margins, but it is beneficial to work with a diverse range of distribution agents.

Approach each tour wholesaler individually

Each wholesaler is different and the services they provide may vary from one wholesaler to another. As a tour operator, you’ll be working with multiple wholesalers located in different countries and regions that provide different services to different types of travel communities.

It’s important that you treat each wholesaler individually and build a personalized partnership. By doing so, it will help maximize your bookings and give you ideas for future marketing strategies. Consider incorporating a cloud based phone system into your operations to enhance your collaboration during the initial stages of your partnership. With this system, you can easily communicate and coordinate no matter where these wholesalers may be located. Features like call forwarding, voicemail, and conference calling enable seamless communication allowing for quick responses and effective coordination.

Meet your tour wholesaler face to face

Building a strong relationship with your tour wholesalers is crucial in ensuring you continue to have a smooth ongoing partnership. Being able to build trust and likeability with them allows for a more personalized venture that benefits both parties.

To communicate with your wholesaler via email gets the job done, however meeting them in person or over video -call will add that personal element. You will see that communication and negotiations will flow much easier once you have met them face-to-face.

Connect with your tour wholesaler on social media

Social media is currently one of the strongest platforms many businesses use to communicate with their customers and followers. In this day and age, many businesses – big or small – have a social media page that they will use to promote their business or provide updates.

You can use social media to your advantage by engaging with your tour wholesalers on multiple platforms. When you’re able to show support and promote your partners on social media by following, sharing, and engaging with them, they will likely return the favor. 

When other businesses promote you on their social media page, this will open you up to a pool of viewers that may not be aware of your business. Consider it as free publicity.

Treat your tour wholesalers like your business

When you apply to partner up with a travel wholesaler, it’s best to do some research about the company and approach them personally. Partnering with a travel wholesaler is more than just signing up to become one of their suppliers, you need to treat them as if they’re your own business. After all, they are providing you with another stream of income.

When working with a travel wholesaler, make sure you inform them of the latest updates, promotions, and opportunities. This will ensure that their staff is up to speed on the latest information that they then can share with their customers.

Keep track of your bookings

It’s important to be able to measure the success of the partnership between your business and the travel wholesaler. After all, you want to know what’s working and what’s not in order to cater to and strategize for the best possible outcomes. 

Keeping track of the bookings that come through from each distribution agent will allow you to have a better understanding of each market. This can then help you create marketing strategies catered towards these markets in order to boost your bookings.

Key takeaways

Working with travel wholesalers can be a valuable strategy for tour operators looking to grow their business and reach a wider audience. By understanding how wholesaler tour operators work, negotiating fair commission rates, and developing strong relationships with their partners, tour operators can successfully navigate the complex landscape of the travel industry and maximize their profitability. 

One effective tool for achieving just that is an online booking software like Rezdy, which streamlines the process of partnering with distribution agents, including wholesalers. Rezdy’s innovative channel manager platform ensures that all partners have access to your live rates and availability, making it easier to manage your distribution network and maximize your profitability.

If you’re interested in trying Rezdy for yourself, you can sign up for a FREE 21-day trial or request a free demo from our friendly team.

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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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Making wholesale a hotelier’s hero

On one hand, hoteliers appreciate that they need wholesale distributors as it helps them to connect supply with new demand and gets many more eyeballs on room inventory. Running operations and agreements for a wide variety of channels can also be time-intensive for hotels, so using wholesalers can make sense to reach thousands of demand partners in one fell swoop.

On the other hand, wholesale distribution has a reputation for also creating challenges for hoteliers, earning itself a bad reputation. These issues are largely due to a lack of transparency and integration from some wholesale partners, resulting in hoteliers losing control of their inventory and room rates.  

An ever-increasing web of channels

Traditionally, wholesalers buy rooms in bulk and sell them to travel agents and OTAs, in a static manner.

However, the market is evolving rapidly as the number of third-party sites and distribution channels looking to buy hotel inventory increases. One of the key drivers of this trend is API (application programming interface) technology, which enables a software interface to offer a service to other pieces of software. This makes it much easier for an airline, for example, to sell a hotel room via its own website.

Because of this, wholesale inventory is being consumed by a wider variety of b2b segments. Financial institutions that often have big rewards programs to drive customer loyalty. Airlines that want to offer more travel products to drive additional revenue. Membership organisations. Affiliates. An open API marketplace makes it much easier to distribute inventory to a wider variety of channels.  

As the number of b2b distribution channels increases, so does the necessity of hotels being able to reach them. There are, for example, audiences that live in a “walled garden” with a unique currency that can only be spent in that environment, such as credit card loyalty programs. Those credit card loyalty points are the only way that customer is going to buy your hotel room, so as a hotelier, if you cannot reach them, if you do not exist in that channel, your competitors are going to get those room nights. Wholesalers are essential for being able to reach customers through these unique channels.

A real-time marketplace

As demand channels become more sophisticated, it is vital that hoteliers do the same. Real-time marketplaces operate successfully in many sectors, and many pockets of the travel sector have been too slow to keep up. For hoteliers to truly benefit from b2b distribution, they can no longer be reliant on the static pricing and upfront bulk buying of yester-year. Hoteliers need to get their inventory in the hands of the right demand channels, at the right price, at the right time. They need to benefit from a real-time marketplace that provides real-time pricing and real-time availability, giving hotels much better visibility and control over their inventory.  

Maintaining control

When hotels are working with multiple wholesalers, which are sometimes daisy-chained to one another, finding out where inventory has come from can be tricky. It can be almost impossible to maintain control over pricing when bad actors are not adhering to accepted channel standards and are using multiple wholesalers to undercut the market. When prices are not moving in unison because of multiple relationships, testing price elasticity and making data-driven changes is highly challenging, and AI-driven demand channels will automatically move to where the cheapest rate is available.

Optimised Distribution – a model for the future of b2b distribution?

One model that tackles these issues of control and transparency of inventory is our Optimised Distribution Preferred program, which gives hotels increased control of what will be sold across the wholesale distribution landscape by creating a single pipeline into the b2b space. Sell rates are distributed to our entire global distribution network of b2b demand partners, so the end rate must not be modified. Our compliance team uses test bookings and data science to ensure rates are being used appropriately.

The aim of the model is to reduce the complexity of maintaining disparate channels, by allowing hotels to adjust and manage inventory and rates through one single source of demand and supply. It ensures consistency of content, so customers are not seeing the same property or room presented in ten different ways. It saves hoteliers the time and effort of trying to figure out who has access to their inventory. And it drives up standards, because bad actors who do not adhere to channel standards get cut off and will not have the inventory. Marriott International, our program launch partner, have seen an 80% reduction in rate parity issues in metasearch. IHG Hotels & Resorts is the latest leading group to make Expedia Group a preferred distributor of its wholesale rates.  

This is just one example of how technology can drive the wholesale ecosystem in a healthy way, benefiting everyone by improving standards, reducing costs, generating incremental revenue for hotels, and providing accurate content and better rates to travellers.

Real-time insights, rate parity and expanded reach

The traditional b2b distribution model is outdated, inefficient and expensive, and does very little for hoteliers. Hotels following these wholesale practices are severely limited in what they can do to control inventory and pricing. For hotels to make the most out of the wholesale channel, they must be able to make real-time decisions over different parts of their inventory, based on real-time insights; ensure rate parity across the b2b ecosystem; and reach as many parts of that ecosystem as possible.

Technology has made these transformations possible, but hoteliers need to grasp them, or risk wholesale remaining a headache, instead of becoming a hero.

About the author

Jamie Griego is the Director Market Management, Australia, Expedia Group. He leads Expedia Group’s Travel Partner Group Lodging teams in Australia. He’s responsible for the strategic direction and execution of the company’s account management and sales approach in the region. He manages an experienced team throughout the region who establish and develop hotel partner relationships and help them attract global travelers on Expedia Group’s expansive distribution network.

With over 15 years’ experience in revenue, sales and account management roles in the hospitality industry, Jamie is an expert at helping businesses achieve their revenue and profit goals. Before Expedia, Jamie worked in revenue management and hotel operation roles at Hilton Worldwide, Marriott International, along with various independent hotel management companies in the United States, Australia, and Japan.

In addition to his role with Expedia Group, Jamie currently works as a Seasonal Lecturer at the International College of Management, Sydney (ICMS) where he teaches Revenue Optimization to undergraduate students. Jamie holds a Masters of Tourism Administration from The George Washington University School of Business and a Bachelor of Science in Hospitality and Tourism Management from New Mexico State University.

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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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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.

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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.

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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.

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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.

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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.

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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.

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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

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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

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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.

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How to Become a Travel Wholesaler in 3 Steps

What Is a Travel Wholesaler?

Start by looking at the offers, becoming a travel agent, from travel agent to travel wholesaler, franchising will help a lot.

Starting your travel agency or business is easier said than done. There are all kinds of different travel businesses you can try, so you first have to figure out exactly where you see yourself. Do you want to run a travel agency that makes arrangements for people, or are you looking for something more challenging, like working as a travel guide?

If you want to enter the big leagues, the best option is to become a travel wholesaler . Doing so will keep your everyday activities interesting and challenging, and you’ll also be able to make some serious money while you’re at it. Keep reading and learn more about what it takes to become a travel wholesaler.

Many people mistake travel agents for travel wholesalers, but the two are not the same. Travel agents work in travel companies directly with travelers. Their job is to help travelers find a destination they like, help them organize the best hotel, and point them to the area’s best activities while they are there.

On the other hand, travel wholesalers don’t work directly with travelers . They are the people that offer travel-related products and services to travel agencies that sell those services to customers. In other words, travel wholesalers provide all details that go into organizing a trip.

That includes a place to stay, a list of activities and tours, and find the best offers on the market. In return, they earn commissions directly from the agency that they helped sell an arrangement. Think of them as travel agent freelancers whose job is to find the best offer from all available travel agencies.

The good news is that the travel market keeps growing steadily every year. According to this website , the global travel accommodation market was valued at $632.8 billion in 2018. That number is expected to reach $893 billion by 2026 . There is plenty of room on the market for new travel wholesalers, so now might be the perfect time for a career change.

Let’s assume that you want to open and run a small local travel agency. As a travel wholesaler, your job is to browse through thousands of travel arrangements, offers, activities, and everything else that has anything to do with traveling.

Facebook and Instagram are a good starting point as that’s where 58% of new clients come from . Once you find the best offers, you have to plan an entire trip. That includes booking hotels, making sure that the travelers you work with get the best prices, organizing their activities while they are on the trip, and pretty much making sure that all of their wishes are fulfilled.

With that said, you don’t work directly with travelers. You have to find the best options and negotiate prices with all hotels, cruises, tour guides, and other travel products. Those prices are usually lower than retail prices as you buy them in bulk. Then, when you sum everything up in one big, juicy offer, you sell that offer to travel agencies that then resell them to travelers at higher prices.

Tourism is a massive worldwide business that covers many different areas. If you want to become an exclusive distributor and build your franchise from the ground up, you will first have to get the legal part in order. First of all, you will need an IATA certificate even to get started.

IATA stands for the International Association of Travel Agents, and it’s the most important document you need to get started .

As a travel wholesaler, you can’t work for another agency using their license, but you need a few years of experience to get an IATA.

What that means is that you can’t become a travel wholesaler overnight. You first must understand how the entire industry works, make the right connections, show that you have the skill needed to handle so much information, and earn a reputation.

Even if you have all that, you will need referral letters from agencies where you worked and as many suppliers as possible. For example, if you ever worked in the Marriott resort hotel, a letter from them would give you a good head start.

Apart from recommendation letters, you will also have to pay fees and bonds that are not cheap. That’s why it’s critical that you establish yourself in the travel industry as a trusted tour operator for another company. Once you meet the right people and have years of experience behind you, you will have the needed tools to become a travel agent.

Once you’ve built a strong foundation for your business, you can start working as a travel wholesaler. That will require a detailed business plan with an emphasis on finance, and you will have to keep an eye on your competition at all times. Check what your competition is doing before starting a business. See if there is room on the market for your agency. If the competition is too strong, you won’t have a chance, no matter what you try.

If you think that you can make it, you will still need a mentor to guide you through the process . That mentor has to be a non-competitive travel agent working for another company. These agents will be happy to give you a hand and help you understand the entire process better.

You will probably have to call dozens of businesses until you find one that’s willing to help you out. You can reach out to Expedia and Traverus Global and ask them for some advice.

Starting from nothing will put you against huge companies that will close all doors before you can get in. That’s why you should consider buying a franchise. Doing so will give you access to a working system and help you avoid common entrepreneurial mistakes . Your job will be to improve the franchise you get with better offers and more travel locations.

Since you will already have some regular customers, you will get some valuable feedback you can then use to improve your offer further. Remember to take one step at a time, and you might find yourself neck and neck with the most prominent travel wholesalers in the country.

Good Luck – You’ll Need It

The travel industry is an unforgiving place. You will find yourself in a small pool filled with sharks, as no one wants to give their piece of the cake away to someone else. However, some careful planning and a few useful contacts can help you build a strong travel wholesale business, but only if you time your moves right.

The current COVID-19 situation has put the industry under more pressure than it has ever seen. It will make your job harder, but on the other hand, the prices are lower, allowing you to close better deals quickly. We wish you good luck on your future travel business!

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Senior Director of Business Development APAC at Hotelmize, fourteen years experience in the travel industry in the APAC region, including eight years expertise in the travel technology industry, with a track record of proven success in the sales of travel technology solutions.

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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Travel industry job positions

The wholesaler sector.

The Wholesale sector is sometimes referred to as the middleman between travel agent and travel supplier.

This sector will source product, negotiate rates and create the product for the travel agent to sell. There are numerous opportunities within the Wholesale sector. Those who work in wholesale tend to be specialists in their destination so if you enjoy researching and developing expert knowledge in a particular area this could be the career path for you. Find out more about the variety of opportunities available in the wholesale sector here!

Please note job titles vary across sector and organisations within the industry.

Jobs in the Wholesaler sector

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The Tourism Industry: An Overview

• First Online: 30 September 2017

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• Mark Anthony Camilleri 2  

Part of the book series: Tourism, Hospitality & Event Management ((THEM))

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This chapter introduces its readers to the concept of tourism. It sheds light on the rationale for tourism, as it explains the tourists’ inherent motivations to travel. It also describes different aspects that together make up the tourism industry. Tourists travel to destinations that are accessible to them. They require accommodation if they are visiting a place for more than 24 h. Leisure and business travellers may also visit attractions, and engage themselves in recreational activities. Hence, the tourist destinations should have the right amenities and facilities. In this light, this chapter clarifies how destinations may offer different products to satisfy a wide array of tourists. Tourism products can include; urban (or city) tourism, seaside tourism , rural tourism , ecotourism , wine tourism , culinary tourism , health tourism, medical tourism , religious tourism , cultural (or heritage) tourism , sports tourism , educational tourism , business tourism (including meetings, incentives, conferences and events), among others. In conclusion, this chapter lists major points of interest in North America to clarify how diverse destinations may be appealing to different tourists, for many reasons.

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Department of Corporate Communication, University of Malta, Msida, Malta

Mark Anthony Camilleri

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About this chapter

Camilleri, M.A. (2018). The Tourism Industry: An Overview. In: Travel Marketing, Tourism Economics and the Airline Product. Tourism, Hospitality & Event Management. Springer, Cham. https://doi.org/10.1007/978-3-319-49849-2_1

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