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 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