Wholesalers: Key to your Distribution Success

One of the most crucial marketing efforts your business will have to conduct to stay competitive is related to distribution decisions. These decisions primarily focus on building accessibility to markets as well to products and services.

In order to have an effective and efficient distribution system, consider the importance of having a wholesaler to support you in all steps of your business distribution process.

A travel wholesaler would be your go-to agent in this industry and who would specialize in selling your products. Including but not limited to hotel rooms, activities and transfers, flights, cruise lines, and rentals.

Partnering with a travel wholesaler is a great business move that frees up time, provides access to products, and provides access to markets.

Get bigger access to products

The No. 1 role travel wholesalers fulfil is providing products and services to different buyers. These buyers typically can’t purchase directly from suppliers. When they do, quantities of the desired product or service are too low, and for this, they are forced to pay higher prices. 

Travel wholesalers sell to a great number of buyers. For this, the numbers of hotel rooms, activities, transfers, flights, cruise lines, rentals, and others they manage are quite large, enabling them access to significantly lower prices. These low prices wholesalers then pass on to buyers, which helps them stay competitive.

From a supplier's perspective, it’s also more cost effective to work with wholesalers, who provide a great net rate, than to work with OTAs who charge for their services. Another existing benefit is the possibility to distribute through channels that are unreachable otherwise, such as loyalty points.

Get better access to markets

Providing access to products for different buyers offers a benefit to suppliers too. This happens because it cultivates new market opportunities for suppliers. To put it into perspective, suppliers of rooms, activities, transfers, flights, cruise lines, and rentals will have their products/services offered across a large number of clients when partnering with a wholesaler.

For instance, for a company that is offering a new product, or a company that is taking its products/services abroad, it would be much easier to have a wholesaler stock their products in order to gain more market grip.

Consider this, the wholesaler will have bigger power convincing customers to purchase your products/services.

Why? A wholesaler has hundreds if not thousands of customers, the overall marketing efforts required to have a wholesaler sell on your behalf will be more efficient compared to the efforts required to convince individual customers to purchase your products/services.

Additionally, wholesalers have immunity to seasonality because they work with markets that travel at different times.

Your time is valuable. Spend it wisely

After you have partnered up with a travel wholesaler, you’ll realize that you can now devote more time and efforts towards other activities that can make you more money.

Think about directing your efforts towards other aspects of your business that may require more attention.

One significant thing to remember about all travel wholesalers in general, their success is directly related to your success. This just says that it is in the best interest of the travel wholesaler to ensure that you become more efficient and that you are able sell more of your products and services.

Sources: KnowThis, Tweak Your BIZ, Chron, Stouse

Posted by Alicia Orta Stanford