The international market can be a confusing and complex place
for operators new to the tourism distribution process. Inbound
operators are a one-stop-shop that takes care of the communication,
logistics and negotiation process, making it simple for your
product to become part of an internationally-sold tourism
package.
One of the most difficult things about selling tourism products
offshore is understanding and negotiating the international travel
distribution process. Inbound tour operators (IBOs) are a way of
circumventing this process, a kind of one-stop-shop for both
international operators wanting to put together packages within New
Zealand, and for New Zealand tour operators who want to attract
international visitors, but don't have the resources to spend large
amounts of time building relationships or travelling.
What is an inbound tour operator?
IBOs are companies that have established relationships within
the international market place and work on behalf of New Zealand
operators to sell New Zealand travel packages to offshore buyers
such as wholesalers, travel agents, meeting planners and event
managers.
They tend to be based in New Zealand, although some will be
based offshore with representatives in New Zealand.
Inbound tour operators also play a role as tourism 'brokers' for
overseas travel companies, providing a wide range of services
including advice on product, price and availability, co-ordination
of travel arrangements and payments, and supervision of product
delivery. They are responsible for preparing itineraries and
booking the ground arrangements on behalf of these overseas travel
companies.
Why work with an inbound tour operator?
Working with IBOs can save you time, money and headaches.
For both New Zealand operators and international wholesalers,
inbound operators are like a one-stop-shop.
IBOs simplify the process of dealing with international markets
for New Zealand companies, negotiating the pricing, organising
logistics and putting your product into relevant packages for your
target market. They also deal with any issues that arise while
international visitors that are travelling on their packages are in
New Zealand.
Inbound operators can also give you access to new markets
through their network of existing contacts.
For international wholesalers and retailers, an inbound tour
operator makes their dealings with New Zealand tourism companies
more streamlined. The IBO gives them instant local knowledge and a
central point of contact, rather than having to coordinate
information from New Zealand tourism operators, airlines, transport
providers, etc. Because of the volume of traffic they deal with,
IBOs can often negotiate better rates with hotels and other
suppliers on behalf of overseas operators.
How to get started
Before you contact an IBO, ensure that your tourism product is
ready to be sold offshore (see our Checklist). You need to have a commission
structure in place as part of your pricing and be clear about
which international markets you wish to
target.
If you would like to use an IBO, you should also get in touch
with the Inbound Tour Operators Council (ITOC) - www.itoc.org.nz.
ITOC is a trade association representing the New Zealand inbound
tourism industry and tourism industry operators.
ITOC encourages development of services, facilities, training
and education. By joining the organisation, you can get advice on
your preparedness for the international market and on choosing a
suitable IBO for your business. The organisation offers
opportunities for networking with both inbound tour operators (full
members) and their suppliers (allied members).
Allied members are New Zealand tourism operators who 'deliver
the experience' IBOs sell to their international customers. Allied
members can be everything from accommodation providers and activity
operators to regional tourism organisations. Contact ITOC to
find out about becoming an allied member.
There are also many IBOs that are not ITOC members, so it's a
good idea to research who is most active in your target markets and
find out who you should be talking to. This is particularly
important for the cruise and luxury sectors.