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  5. Set your travel partner prices

Set your travel partner prices

3 minute read • Last updated: 25 February 2025

If you’re going to start selling your product or service through a travel distribution partner party, you need to review your pricing strategy. The cost the customer pays may need to change to account for the commission a partner will take.

You may use the same pricing strategy for selling directly and through a travel distribution partner, but you should review your costs and decide on an individual price.

In this article:

  • How to set your prices - video series
  • Review your prices
  • Set your new trade prices
  • Offering an enhanced product

How to set your prices - video series

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3 minute video

If you’re planning to sell your product or service through a travel distribution partner you’ll need to look at your pricing strategy. You might decide to use the same strategy as you use when selling directly to customers, but remember your costs can be different when working with a partner and it’s really important to set the right price.

Watch the full travel distribution video series.

Review your prices

Couple monitoring social media

Monitoring social media

If you’re going to start selling your product or service through a travel distribution partner party, you need to review your pricing strategy. The cost the customer pays may need to change to account for the commission a partner will take.

You may use the same pricing strategy for selling directly and through a travel distribution partner, but you should review your costs and decide on an individual price.

Update your costs

Review your fixed and variable costs again to see if they have changed, and consider the additional money you will need for new requirements such as:

  • travel trade events ticket fee
  • allocating some capacity of your product to familiarisation (FAM) trips
  • additional staff to manage relationships and enquiries

Set your new trade prices

Your price for selling through trade should be kept separate from your direct customer price and shouldn’t be shared publicly.

  • Set a “price from £” amount

    This is the minimum price per customer or per group.

    Example

    • You calculate that you need to make £30 per person to cover the fixed and variable cost of the product.
    • A destination management company (DMC) buys the tour from you for £40 but sells it onto a tour operator for £50.
    • The tour operator sells the tour to a customer for £60, as part of a wider holiday package which costs £350.
    • Or an online travel agent (OTA) sells your tour for £45, which includes a 20% commission.
  • Set a flat rate

    This would be the total amount for the cost of the product, up to a maximum number of people. A travel distribution partner can bring less people, but they would still need to pay the total flat rate.

    Example

    • You calculate that you need to make £80 per person with 10 people to cover the fixed and variable cost of running it once a day. That gives you a flat rate of £800.
    • A DMC may want to just bring a private tour of 4 people, but they will still pay the flat rate of £800.
  • Set a price on application (POA)

    Remember to include the minimum and maximum numbers of people you can take for each sale of the product but offer larger groups as price on application (POA).

Offering an enhanced product

When comparing pricing for direct customers versus travel trade partners, you also need to consider what experience you are offering. You may decide to offer an enhanced experience to suit your travel trade customer needs.

This might be:

  • A standard admission for £20 for direct customers.
  • A queue jump pass alongside the admission cost for £25 for OTA customers.
  • A guided tour with a storyteller alongside the admission cost for £40 for travel trade customers.
  • A guided tour with a storyteller and a 3-course meal alongside the admission cost for £100 for premium travel trade customers.

Explore more of our guidance on travel distribution. 

Pitch your business to a partner

Now you've set your prices, find out how to prepare an engaging and informative pitch which inspires a travel distribution partner to want to sell your business to their customers.

Find out how to prepare all of the information about your business including your unique selling points, net zero and inclusive features and target market.

How to prepare a business pitch

Related pages

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Review different pricing strategies and find the right one for direct sales and for selling through a travel distribution partner.
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Prepare your business checklist

Make sure you’re prepared for meeting your first travel distribution partner with market research, prices and business information.
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Connect with travel trade partners

Find out about travel trade events and walk step-by-step through building your first travel distribution relationship.
How-to
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Choosing an online travel agent

Learn about online travel agents (OTAs) and get advice on choosing the right one for your business, and how to set up and manage your product listing.
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11 minute read

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