Why Inbound Tour Operators and Activity Suppliers Should Embrace the Power of Their Own B2C Platforms?

In the dynamic realm of travel, inbound tour operators, activity suppliers, and transportation providers are adapting to changing consumer behaviors and distribution trends. With the proliferation of Tours and Activity Online Travel Agencies (OTA's), operators often find themselves at a crossroads—choosing between reliance on established distribution channels and the benefits of investing on and operating their own Business-to-Consumer (B2C) platforms.

The Rise of OTA Partnerships

As the popularity of Tours and Activity OTAs continues to soar, many operators are leveraging these platforms to expand their reach, increase sales volumes, and streamline operations. Partnering with OTA channels offers several advantages:

1. Increased Volume of Sales

2. Efficiency and Streamlined Operations

3. Expanded Distribution Channel

However, amidst the reliance on OTA partnerships, operators should consider the advantages of having their own B2C platform:

1. Direct Control Over Customer Relationships

Operating a B2C platform enables operators to establish direct relationships with customers, fostering brand loyalty and allowing for personalized interactions.

2. Revenue Independence

A B2C platform provides operators with the flexibility to capture revenue directly, reducing dependence on third-party partnerships and their associated fees.

3. Mitigating the Impact of Competition

The increasing competition on supply to OTA platforms may impact a business's share of sales. Having a B2C platform allows operators to differentiate themselves and maintain control over their market presence.

Striking the Right Balance

While OTA partnerships offer undeniable benefits, operators should strive for a balanced approach. For a healthy and sustainable business, it is crucial to determine what percentage of your tour operator business should come from your own B2C platform.

According to a report by Arival on booking percentages by sales channels in 2022 post-COVID:

• 33% from their own website
• 25% from OTA
• 24% from offline indirect channels
• 18% from offline direct channels

These figures serve as a valuable guideline for operators, indicating that having at least 33% of your operational business through your own online B2C platform is a strategic move to stay competitive and resilient in the market.

In the evolving landscape of travel, the choice between OTA partnerships and operating a B2C platform is not binary. Striking the right balance between these approaches will empower operators to harness the benefits of both, ensuring long-term success, resilience, and adaptability in the ever-changing tourism industry.