Viator, a TripAdvisor-owned giant in online tours and activities, has made a significant move to court travel agents. With the launch of its dedicated Travel Agent Platform, Viator is aiming to expand its reach beyond direct consumers and tap into the established networks of travel professionals. This initiative comes as the market for unique travel experiences heats up, intensifying competition among major players like Airbnb and GetYourGuide. But is Viator’s offering truly compelling for travel agents, and can it reshape how tours and activities are booked?
Diving into Viator’s Travel Agent Strategy
TripAdvisor’s foray into direct engagement with travel agents through Viator marks a strategic shift. Previously, Viator’s interactions with agents were limited to platforms like the Airlines Reporting Corp. Marketplace, which is now defunct. This new program signals Viator’s recognition of the vital role travel agents play in the broader travel ecosystem. As TripAdvisor seeks to diversify its revenue streams beyond hotels, the tours and activities sector, where Viator leads, becomes increasingly crucial. In the second quarter, TripAdvisor’s non-hotel revenue saw a robust 22 percent growth, highlighting the potential of this market segment. The travel agent program is a clear indication of Viator’s ambition to further capitalize on this growth.
Unveiling the Viator Travel Agent Platform
The Viator Travel Agent Platform is designed to be a distinct and user-friendly resource, separate from Viator’s consumer-facing website. A key incentive for agents is the 8 percent commission offered on each booking made through the platform. This commission-based structure is intended to reward agents for utilizing Viator’s extensive inventory of tours and experiences. Beyond commissions, the platform provides practical tools to streamline the booking process. Agents can manage payments directly through the system in multiple currencies, simplifying transactions for international bookings. Viator also includes a resource center on the platform, offering training materials and destination guides to equip agents with the knowledge they need to confidently recommend and book Viator experiences for their clients.
Travelers exploring ancient ruins with a guide
A particularly useful feature for agents is the ability to curate personalized collections of experiences. Agents can select tours and activities that align with a client’s interests and preferences, then share these recommendations through a custom link. This empowers travelers to book directly from the agent’s curated list, ensuring the agent earns commission while providing a tailored service to their clients.
The Commission Conundrum: Is 8% Enough for Viator Travel Agents?
While Viator’s entry into the travel agent space is welcomed, the 8 percent commission rate has sparked mixed reactions within the agent community. Some agents view it as lower than the industry standard. Ed Postal of Luxe Travel Management points out that his agency often secures commissions as high as 18 percent through wholesalers, making Viator’s 8 percent offering less attractive for his business model, which focuses on high-end, customized travel planning. Postal suggests Viator might be more appealing to “non-professional travel agents” or those with different commission expectations.
However, other agents recognize the value proposition in Viator’s extensive selection. Michelle Bates, general manager of Davisville Travel, acknowledges that while the commission is “a little bit smaller,” Viator’s unparalleled range of tours and activities is a significant advantage. Bates highlights the sheer volume of options, surpassing many competitors, and appreciates the inclusion of customer reviews for each offering, aiding in informed recommendations. For agencies prioritizing breadth of choice and ease of use, the slightly lower commission may be a worthwhile trade-off. Viator currently boasts over 120,000 bookable options, a number that dwarfs many specialized providers and offers agents a comprehensive solution in one place.
Viator’s Evolving Program and the Competitive Landscape
TripAdvisor acknowledges that the Viator Travel Agent Program is still in its early stages. Spokeswoman Laurel Greatrix emphasizes that policies and commission rates are not fixed and are subject to ongoing evaluation based on market feedback. This flexibility suggests Viator is open to adapting its program to better meet the needs of travel agents as it gathers more data and industry insights.
Viator’s push into the agent market occurs amidst a broader surge in the experiences sector. Airbnb’s significant investment and expansion of its Experiences platform underscores the growing traveler demand for unique and local activities. While Airbnb does not currently offer a travel agent commission program, Viator is strategically positioning itself to leverage this agent channel, differentiating itself from competitors like Airbnb in this aspect. GetYourGuide, a Berlin-based company, has had a travel agent program for five years, with a substantial number of registered agents, indicating the established presence and potential of this approach.
Ultimately, travel agent programs may not be the sole determinant of market dominance in the tours and activities sector. However, they represent a valuable addition to the offerings of companies like Viator and GetYourGuide. For Viator, the Travel Agent Platform is about recognizing and serving a crucial segment of the travel industry. As Greatrix states, “Travel agents are an integral part of our business and our suppliers’ businesses, and they deserve a platform designed specifically for their needs.” The platform is a dedicated tool built for agents, contrasting with booking sites primarily designed for end-users.
The Verdict on Viator Travel Agents: Opportunity or Overlook?
The Viator Travel Agent Program presents a mixed bag for travel professionals. The platform offers undeniable advantages: access to an enormous inventory of tours and activities worldwide, a user-friendly interface, and tools designed to simplify booking and payment processes. For agents who value breadth of selection and efficiency, and perhaps cater to a clientele less focused on ultra-high-end experiences, Viator can be a valuable resource.
However, the 8 percent commission rate is a sticking point for some, particularly those accustomed to higher commissions or specializing in luxury travel where margins are crucial. These agents may find better financial incentives through wholesalers or direct partnerships.
The success of Viator’s program will likely depend on its ability to adapt and respond to agent feedback. As the program matures and Viator potentially refines its commission structure or adds further benefits, it could solidify its position as a key platform for travel agents booking tours and activities. For now, agents should weigh the pros and cons carefully, considering their business model and client needs to determine if Viator Travel Agents is the right fit for them.
