The best distribution channel for your business will depend on
the product you are selling and the outcome you are looking to
achieve. Don't attempt to engage with every distribution channel in
a particular market. Choose the one that is best for you. Packaging
with other operators may be a good option if you are a smaller
business.
For example, if your business is a bed and breakfast in rural
New Zealand, you may find the best way to sell to international
visitors is once they are in New Zealand. The best distribution
methods in this case are local guidebooks, i-SITE Visitor Centres
and finding other tourism operators who will display your
brochures.
On the other hand, if your business is larger and you are able
to cater to a greater number of visitors, or have a specific niche
market such as luxury travellers in mind, you may want to consider
a more complex offshore distribution strategy. In this case, it
might be appropriate to appoint a sales agent in an offshore market
to call on wholesalers and agents and undertake sales campaigns on
your behalf.
Consider the following factors when developing your
distribution plan:
- How and when does your target market purchase this type of
product? Do they tend to book direct, online, through a travel
agent or after they arrive in New Zealand? Check the Markets and
Stats section of this website for more information.
- What distributors are likely to sell and promote your product?
Do your research. What agents and wholesalers are active in this
market, are already selling New Zealand products and have the same
target market as you do?
Talk to your regional tourism organisation (find their contact details here), other tourism
businesses that are already active in this market or contact Tourism New
Zealand's regional office.
Partnering and packaging products
To sell your products in the international marketplace they need
to be visible - and the best way to achieve this is to be included
in wholesaler and retail brochures. However, the travel trade will
generally not feature lower-priced products in their brochures
because of the low commission rates.
One way to get around this issue is to combine your product with
other complimentary products to create a package. This can be
achieved by working with other like-minded tourism operators to
form a marketing cluster that enables you to offer wholesalers,
agents and inbound operators a single product at a higher dollar
value.
Consumers get the benefit of purchasing a bundle of products
that suit their interests, the agent gets the higher rate of
commission they're after and you and your fellow operators increase
the exposure of your product in the international marketplace.
There are a few things to consider if you are thinking of
working with other operators to bundle your products:
- Make sure you know who you're going to be working
with. Do a thorough check of the products the other
operators are adding to the bundle and make sure they meet your
expectations of quality, safety and professionalism.
Making sure they are Qualmark rated or endorsed is a good way to be
assured they have the business systems in place to deliver a
quality experience to visitors. If you have a Qualmark Enviro
rating you may also want to partner with other businesses that
either already have or are working towards an Enviro rating.
- Choose products that complement each other.
The other products in the bundle should complement each other in
some way - so they all appeal to your target market - while
offering a different kind of experience that will be of value to
your customers. For example if you offer a Māori cultural
experience, you should consider bundling with other products that
also have a cultural element.
- Develop a sales and marketing strategy. Once
you have developed your package it should be marketed separately to
the rest of your business. Consider the distribution channels you
will use and develop the appropriate brochures and other marketing
material. The operators involved should share the cost of marketing
and promotion.
- Assign one party to handle bookings and
administration. It's best that one business holds
responsibility for all the bookings and financial processing of the
package. They will need to be responsible for sharing earnings from
the package to the other operators involved, at previously agreed
levels.
- Price it right. Agree pricing for a 12-18
month period and don't forget to build in the
appropriate commission structure.
- Be patient and work on building the product.
Expect it to take at least two years to establish your package
internationally. Assign one person to be the front-person for the
package, responsible for representing your package to the offshore
travel trade, to save confusion.
- Make it official. It's a good idea to draw up
a legal agreement between the companies involved in the
package.