ABOUT THE RECEPTIVE TOUR OPERATOR (RTO) CHANNEL

 

WHAT IS A RECEPTIVE OPERATOR?

  • Wholesaler to overseas wholesalers
  • Financial intermediary between U.S. suppliers (hotels/attractions) and international wholesalers.
  • Develops products and contracts with hotels and attractions.
  • Some aggregate hotels for resale via int’l travel agents.

PRODUCTS/SERVICES THEY OFFER

  • FIT online booking systems
  • Escorted group tours
  • Fly-Drive programs
  • Act as DMCs for international business
  • International leisure groups
  • M.I.C.E. tour programs
  • Meet-and-greet and ground services

ROOM NIGHTS SOLD BY THROUGH THE RTO CHANNEL

  • Total overseas room nights from leisure channel: 120 million room nights*
  • Total overseas room nights sold via all receptives in 2012: 19 million (estimate)
  • RTO  channel represents 17 percent of total “leisure” room night sales from overseas**

*Excludes Canada and Mexico, business travel as well as those visiting friends and relatives; *Estimates based on NAJ TRAX™ Receptive Room Night Production Reports

ADVANTAGES OF WORKING WITH RECEPTIVE OPERATORS

  • Most efficient way to access international travelers
  • One RTO can place your product in as many as 70 countries
  • RTOs deliver business during off-peak times
  • RTOs help overcome language barriers
  • RTOs have access to international groups and M.I.C.E.
  • RTOs  assume currency and financial risk of collections
  • RTOs require issuing relatively few contracts
  • RTOs move distressed inventory at yields higher than OTA’s w/ less risk to brand image
  • RTOs indirectly provide FREE ADVERTISING in overseas markets
  • By placing your products  in tour operator brochures, RTOs can generate unexpected direct bookings for hotels

DISADVANTAGES OF WORKING WITH RTOs

  • Must provide net rates 18 months in advance (in case of traditional operators national operators)
  • Perception that they provide low-yield tourism class business (rarely true)
  • Tiered rate discount for RTOs can seem unnecessary in strong economy
  • RTOs may not always be able to fill their contracted allotments
  • Sales from wholesalers can take 2-3 years to materialize