What is an incoming tour operator?
An inbound tour operator is a type of travel company that arranges and manages travel services for international travelers wishing to explore a destination.
Also known as ITOs, inbound tour operators work with local travel companies and transportation operators to facilitate and coordinate package tours for inbound tourists. What is inbound tourism? It is simply the act of a traveler visiting a country that is not his own.
ITOs are often called domestic tour operators or land tour operators, as that might be a more accurate description of what they do: they are on the ground, organizing tours to specific destinations, for clients who are unfamiliar with the area.
What is the difference between an outbound and inbound tour operator?
Now that we have a definition of inbound tour operator, what is an inbound or outbound operator? Outbound tour operators are simply those companies that operate trips to destinations other than their own.
In this guide, we will focus on Inbound Tour Operators (ITOs) and how a hotel can capitalize on the incredible opportunities these companies present.
The value of incoming tour operators for hotels
Why are ITOs so valuable to hotels? Because many people book their trips through inbound tour operators, which means they arrange beds for many tourists. By partnering with an ITO, you gain access to the hundreds, if not thousands, of tourists for whom the company must arrange accommodation.
Why inbound tourism is booming
The inbound tourism industry is booming because travelers are increasingly aware of the value of local knowledge. An ITO brings a deep understanding of their region, so the traveler has the potential for a more authentic and engaging travel experience.
There are also other reasons:
- Increased global connectivity, including more affordable flights, has made international travel more accessible than ever.
- A rapidly growing global middle class has the disposable income to travel abroad.
- Increased awareness of global cultures has led more people to seek out authentic and immersive travel experiences.
Advantages of hotels in partnership with incoming tour operators
ITOs give you access to/increase your visibility in a high value-added travel market. Additionally, tour groups may fill your hotel mid-week, as international tourists tend to be less focused on the weekend.
Unlock the power of ITO with SiteMinder
SiteMinder offers full integration with a number of ITOs and ITO-focused booking platforms, allowing your hotel to capitalize on the wealth of travelers for whom inbound tour operators curate itineraries.
Learn more
Examples of incoming tour operators
What exactly does an ITO look like? Some of the world’s best inbound tour operators include:
- Perla Tours: Based in Barcelona, this ITO prides itself on its knowledge of the Mediterranean and offers distinctively local tours to international travelers.
- Bonotel Exclusive Travel: ITO, which describes itself as the leader in North America, gives its hotel partners access to 2,600 travel agencies around the world.
- Travel Addicts Limited: This New Zealand-based company offers group, solo, adventure, cultural and totally personalized tours to its remote corner of the world.
- Eurotours: Organizing holidays for over a million travelers each year, Eurotours is a major player in Austria and its surrounding neighbors.
- Neo Travel: This company is established in Spain, Portugal, Andorra, Dominican Republic, Cuba and Mexico, offering tailor-made services to hotels and travelers.
Strategies for establishing successful partnerships with incoming tour operators
Establishing partnerships with ITOs requires some effort, but the rewards can be significant. The following strategies can help you secure this valuable activity:
Identify the right ITOs for your hotel
Focus on ITOs that target the same type of traveler as you. Work to align your offering with the needs of the ITO and its customer base, for example by offering more flexible arrival and departure times.
Negotiate contracts with incoming tour operators
Create clear agreements in terms of rates, commissions and cancellation policies, and be flexible where you can. Ultimately, you and the ITO should win in this partnership.
Integrate your hotel reservation platform with your ITO systems
Ensure your systems can connect seamlessly with incoming tour operator software. SiteMinder, for example, offers integration with services like Tourplan, which allow an ITO to book directly with you.
Create attractive tour packages
Design packages specifically for the ITO and its clientele, such as combining a stay at your hotel with a local tour or experience.
Prepare inbound tourism packages for off-peak seasons
Offer unique or discounted packages during low season to attract more bookings from ITOs.
Leveraging ITOs to access niche markets
Collaborate with niche ITOs who focus on specific markets like ecotourism, gastronomy or adventure, and tailor your offerings to meet the preferences of these groups.
Using ITO data to personalize customer experiences
ITOs are a treasure trove of traveler data. Request access to information on demographics, preferences and travel habits to create a more personalized customer experience, from welcome amenities to tailored services.
Develop long-term loyalty programs with incoming tour operators
Encourage guest loyalty by establishing loyalty or incentive programs with ITOs, offering attractive benefits that foster long-term partnerships, such as discounts for a certain number of rooms booked over a certain period.
Evaluate ITO performance with key indicators
By tracking key performance indicators (KPIs) such as booking volume and revenue per booking, you can assess each ITO’s contribution to your business and adjust your strategies as necessary.
How to maintain long-term relationships with incoming tour operators
You can maintain valuable, long-term relationships with ITOs in the same way you maintain relationships with other travel partners. You should:
- Communicate clearly and coherentlyespecially if you need to update your rates or policies.
- Establish processes which ensure that you provide high quality service to every ITO customer.
- Offer exclusive incentives who recognize the value ITO brings to your hotel.
- Collaborate with the ITO to create better and more memorable experiences for their travelers.
But how can you ensure your connections are strong, reliable and efficient?