When I first started in the tourism industry 10 years ago, I started from scratch. I started my own day tour business with no idea about how distribution worked in the tourism industry. Over the past ten years, I have learned, and continue to learn, about the nuances of distribution in a global industry.
I recently noticed that several of the TourConnect contractors have connected with over 25% of their suppliers on the system in less than 6 months. Specifically, Southern World has connected with over 33% of their Suppliers in around 6 months. Broome & The Kimberley Holidays was at nearly 30% and Swain Destinations hit nearly 25%. This significant uptake of connectivity led me to reflect on a few key changes happening in tourism distribution at the moment.
Suppliers want to feel more connected with their distribution partners.
I was pretty impressed to see the speed at which our contractors are connecting with their suppliers on TourConnect. These statistics, along with my conversations with suppliers in the industry, show a significant desire for suppliers to have a closer relationship with their contractors. It’s no longer viable to simply exchange emails once a year for rates, and possibly see each other for 10 minutes at an industry event. These relationships are core to our businesses, and they require up to date information, and contact, in order to grow.
Contractors are striving for efficiency in order to remain competitive.
Technology is slowly but surely making its way into the tourism industry. From better booking systems to accounting systems, the industry is finding new ways to innovate while managing all aspects of the relationship between contractors and their suppliers. The companies that embrace technology are expanding margins, providing better service, and reacting quicker to industry changes. These contractors understand the complex relationship with their suppliers as partners, but almost an extension of their service, as well. Technology is drawing the organizations closer together to create a more seamless partnership. Companies that are not able to change with the times in this manner are beginning to see the effects, from eroding margins to slower growth, and ultimately, decreased company valuations.
Everyone is looking for new partners.
As we see more and more connections being made, we are constantly being asked if we can help our customers find new partners. Suppliers are looking for contractors that can sell their products. Contractors are looking for new, innovative suppliers that are export ready, to sell. The inefficiency of connecting partners in this portion of the tourism industry is stifling its growth. Providing a way to connect new partners is just another way to help suppliers and contractors improve their businesses.
It’s an exciting time in the tourism industry, and it should prove to be a significantly different landscape in the coming years. I can’t wait for what the future has in store.
