Dear WuBookers, as in every sector, the tourism industry also features particularly beneficial collaborations, such as those between hoteliers and tour operators. But for hotels and tour operators to work well together, and reap economic benefits, the partnership must be seamless, and the operational tools must be adequate. We’ll explore this further in this article.

What does it mean to form a partnership with a tour operator?

Starting a collaboration with a tour operator or a travel agency – whether in-person or online (so-called OTAs) – means reaching an agreement that provides advantageous terms for both parties. There is no one-size-fits-all formula, but typically the focus is on rooms or combinations of rooms and services, which the property makes available to the operator at an agreed-upon price. The operator, for its part, commits to selling those rooms, leveraging the broad visibility it enjoys and/or the offerings it is developing, such as tour packages and organized trips. In this way, both parties gain economic and practical benefits: on the one hand, the hotelier can count on greater sales certainty, often in volumes exceeding their natural capacity (thus offsetting the loss from the reduced selling price per room). On the other hand, the tour operator expands its catalog and earns a commission on sold packages, taking on the responsibility for marketing.

Whatever the type of agreement, it is important that it be governed by a contract, in which mutual policies and rates are specified and officially accepted by both parties. Sales and promotional terms must also be detailed: for example, it is possible to establish exclusivity clauses that prohibit other forms of distribution besides the agency; or to open this possibility to other channels as well, such as sales on the hotel’s website. In any case, before committing to one or more partners, it is important to evaluate certain essential aspects.

How to Choose the Right Partner for Your Hotel

Choosing the right partner, in life as in business, is not a simple matter, and various factors come into play. Among the top priorities to consider when exploring a potential partnership with agencies and tour operators are:

• the partner’s reach: whether it’s an OTA or a local tour operator, it’s important to verify that they operate in the same geographic area or can reach a clientele interested in the region where your property is located to ensure a continuous and sustainable flow of guests;
• the type of customers: we know that guest satisfaction is essential, so you must ensure that your offering is suited to the clientele served by the partner to avoid the risk of proposing solutions that fall short of or exceed actual expectations;
• the agency’s reputation: before linking your name to that of an operator, it is wise to ensure that they have a good reputation and that your image is not compromised once the partnership becomes public;
• any additional objectives beyond profits: these may include, for example, the desire to gain greater visibility and credibility, or to expand your customer base to include types of guests beyond your usual clientele. Bringing these goals to the table can help in reaching a balanced and mutually beneficial agreement;
• compatibility of views and approach: it is also essential that working methods align to avoid misunderstandings and setbacks once operations begin. During the exploratory phase, it is advisable to assess each party’s flexibility and address sensitive issues such as handling unforeseen events.

The selection and negotiation process can be very delicate, but – if well-structured – partnerships between tour operators and hotels can prove highly advantageous.

The Benefits of Collaboration Between Hotels and Tour Operators

If everything goes according to plan, there are many positive aspects the property can benefit from, both direct and indirect: let’s look at the main ones.

Increase in reservations

Whether large or small, the business partner should guarantee an increase in reservations for the hotel, thanks to its sales strategy and promotional activities. This translates to a higher occupancy rate at zero marketing cost, because the tour operator or agency directly handles its own visibility.

Greater visibility

Visibility is another essential element. Consider, for example, what often happens with OTAs: many people use them to book a trip, but others prefer to get an idea of the various options available and then contact the hotel directly to make a purchase. When this happens, your advantage is twofold: you’ve made yourself known to those who book through the external platform, and you have a good chance of making direct sales as well.

Stable occupancy and simplified reservations

A steady flow of guests is desirable not only from an economic standpoint, it’s also essential for weathering any dips during the off-season, but also for staff scheduling and managing various operations. Furthermore, reservations from agencies and tour operators are typically streamlined: the process is often handled within their platforms or at the front desk, or otherwise managed by the agency without the hotel’s direct involvement.

Wider audience

Agencies also offer the opportunity to expand your audience: an appealing aspect, especially for newer establishments or those located in “alternative” areas compared to classic tourist destinations. Opening up to new markets can mean reaching new target audiences and thus entering a segment less crowded by competitors and more profitable than the one reachable solely through your own efforts.

Guest satisfaction

Especially in the case of package tours, the agency takes care of everything and determines—in agreement with the hotel—which services to offer based on the tour package and the clientele, who arrive at the property “prepared.” This ensures a tailor-made experience for the traveler, but one that also benefits the hotel, which thus has a better chance of receiving positive reviews and ratings. Not only that: a satisfied customer is also more likely to return and recommend the property to others.

Feedback from guests and operators

Still on the topic of feedback, collaborating with a tour operator allows you to get two-way feedback: from guests, who are usually invited by the agency itself to leave their comments on the trip; and from operators, who share impressions and suggestions at the end of the package. This makes it easy to identify areas for improvement and make the offer even more appealing.

Market overview and forecasts

Understanding and capitalizing on tourism trends isn’t always easy, especially when managing a property that, by its very nature, has material and objective limitations. Tour operators, on the other hand, are inclined to modify and enhance their services to try to capitalize on industry trends as much as possible. Working side by side with these companies provides a privileged insight into current preferences and trends: a useful starting point for adapting the hotel’s offerings as well.

The less advantageous aspects

Establishing a partnership with a tour operator is therefore a potentially very positive move. However, it is also important to consider the less advantageous aspects that may arise, either in whole or in part:

• lower margins on individual rooms: the frequent need to offer discounted rates to partners can, over time, lead to frustration due to reduced profits compared to sales through other channels (especially direct bookings). If this situation is not balanced by adequate occupancy, it can become counterproductive;
• excessive dependence on the agency, with the risk that, if the partnership ends, a significant portion of business is also lost;
• low customer loyalty: in fact, it is unlikely that travelers coming from far away or participating in special tours will have the opportunity to return soon, so they rarely become repeat customers;
• a very diverse clientele: if the agency offers a variety of experiences, the clientele is likely to be diverse as well, and this, in the long run, could create supply issues or an inability to meet everyone’s needs;
• groups to manage: in addition to the challenges associated with group bookings, you must also consider other guests, who do not always appreciate the presence of large groups, which can sometimes be quite disruptive.

All things considered, however (and with the necessary precautions), working with tour operators can be highly rewarding. Especially if you have the right tools!

WuBook for agency management

One of these is definitely Zak, the PMS by WuBook, which, in addition to integrating Channel Managers and Booking Engines to receive direct reservations and indirect reservations, also simplifies agency management.

Within the software, in fact, agencies and tour operators can be entered with a complete database of all their details and color-coded. This way, when the property receives a reservation, it can easily associate it with the originating agency.

Furthermore, each agency page can be configured differently: you can specify whether the guest pays directly to the hotel or to the agency, and what the corresponding commission is, expressed as a percentage or as a fixed amount.

By accessing the agency page, the hotelier can therefore view all associated reservations and even record payments or issue billing documents for one or more reservations at a time: a very convenient way to keep track of the situation, obtain statistical data on each agency’s performance, and organize administrative procedures with just a few clicks.

Not only that: for each reservation, the name of the person who booked, the dates of stay, the costs, the payments to be collected, and the amounts already invoiced are also available. The agency’s color, which can be assigned as desired, helps distinguish at a glance the reservations linked to a specific agency, like a real internal code.

And what about the practical management of reserved rooms?

This is also extremely streamlined: if a room is reserved exclusively for an agency, for example, there’s no need to manually block it across all sales channels. Simply specify in the dedicated field (“Allotment”) how many rooms of that type have been allocated: the system records them automatically and hides them on all other channels, including the property’s own website.

Business relationships can be complex and delicate, but eliminating the stress of management, review, and control certainly lightens the workload and makes the entire operation more fluid and productive.