Byway - Packager Partnerships

Several byway organizations have developed different types of partnerships with tour packaging businesses that share a percentage or portion of consumer travel fees with the byway.

Who/What:

One byway representative suggested using caution and care in selecting on online travel packager and carefully crafting a written contract agreement that will assure the byway organization receives timely and appropriate payments. Clearly define the payment arrangements – whether by voucher or other means.

If the packager says it is endorsed by the America’s Byways program or any other entity, check those references. Ask the organizations promoting the destinations featured in tour packages about their relationship with the packager.

One byway representative spoke of working with Amtrak to include the byway in tour packages sold by the railroad company. The byway did not make any income from the collaboration. Amtrak provided three pages of editorial and other exposure for the byway tours.

Some byways are anonymously packaged as the routes for National Parks and other tours. Supply a byway logo and request the logo and byway name be name be used in tour promotion materials.

At least one byway organization was in the process of developing its own tour processing system, using a secure transaction line and a bank that offered attractive credit card processing fees.

When:

Partnerships with tour packagers may be on a time-limited, trial, multiple-year or open-ended basis.

How:

In 2004, Seaway Trail. Inc. partnered with TOURCO, an internationally-known inbound receptive wholesaler, to offer fly-drive tour packages. The packages were based on a variety of themes: lighthouses, castles, foods, scenic wonders, and historic sites, and in some cases included attractions off-Trail.

“These packages offer a taste of ‘real America” to seasoned FIT travelers who have already been to New York City, Las Vegas, and Disney World,” says Seaway Trail, Inc. Executive Director Teresa Mitchell. “Working with TOURCO provides the opportunity to extend the Seaway Trail’s travel and vacation resources to audiences throughout North America and around the globe.”

The 2004 packages offered pre-planned itineraries, ranging from five to 14 days, using the air gateways of New York, Toronto and Montreal. Consumers also had the option to design a ‘go-as-you-please’ package of hotel accommodations, allowing the traveler to visit sites wherever they chose between hotels. Travelers made their selections in either instance and received site vouchers with driving directions.

The packages were promoted through a color insert in Seaway Trail’s annual travel guide Journey magazine and in TOURCO’s promotional materials for travel sellers. A 50,000—copy overrun of the Journey magazine insert was distributed to AAA offices in the U.S. The packages were promoted by Seaway Trail staff on a sales mission to Europe and via advertising in European publications.

TOURCO answered a toll-free phone number to take orders for the packages. TOURCO designed a webpage hosted on the Seaway Trail website - the consumer order form was electronically referred to TOURCO offices for processing.

TOURCO offered wholesale net rates to domestic and international tour operators. Seaway Trail, Inc. would receive a percentage of packages sold domestically; TOURCO did not offer a percentage to Seaway Trail, Inc. on international packages.

In 2005, through TOURCO, Dublin, Ireland-based tour operator CanAmerica offered a 14-day, 13-night New York Naturally fly-drive package (PDF) that includes the Seaway Trail. CanAmerica plans to exand sales in 2006.

Funding Potential:

The funding potential of this type of byway-tour packager business partnership varies by the number of and success of packages offered and the percentage of sales negotiated for return to the byway organization. Success of packages may also be influenced by the extent of marketing and visibility the packages receive in optimum marketplaces.

Following no sales of the 2004 Seaway Trail packages, TOURCO chose two of the packages for promotion in 2005. The fact that many Europeans book their travel packages in advance through travel agents may have hurt first year sales. Domestic travel sellers’ continuing interest in selling Disney and other traditional travel package destinations may create a challenge for the byways to insert themselves as an attractive niche product.

Another byway organization that was building its own tour packaging system at the time of the sustainability roundtable discussions had worked with a consultant who projected annual sales of 125 packages. The byway representatives were hoping to sell 35 to 50 packages in the first year and were designing an ad campaign to drive buyers to the byway website. The packages linked the organization’s byway to a major city gateway and to a nearby national attraction as package lures. The byway organization priced the packages with a 10 to 15 percent markup. The convention and visitors bureaus that offer packages online and that had agreed to include the new byway packages could pay a small fee back to the byway organization.

Why Tour Packaging Partnerships:

• Generate visibility of the byway and provide economic engine for tour packager and byway organization

Resources:

Seaway Trail, Inc.