Why you should be true to your Preferred Suppliers

For many years now in the travel industry, the term “Preferred Supplier” has become, quite frankly, a meaningless phrase.  

Retail groups have ended up with so many “Preferred Suppliers” that they practically included every supplier out there. Add to that the inability on the part of most chains, consortia and host agencies to actually control what their agents are selling and you basically have a free-for-all approach in the industry today.

This model has not served anybody very well. Certainly not the supplier … and I am going to try to persuade you that it does not serve YOU, or the customer, either.

Some organizations are learning that if they truly do limit the number of preferred suppliers and if they can get their agents to buy into supporting those suppliers whenever possible, while still satisfying the customer, then there are a host of benefits to the arrangement.

First of all, the supplier’s sales will go up with your retail group and they will be more inclined to be supportive in terms of overrides, marketing support and other benefits.

Secondly, the more you concentrate on only a few suppliers, the more familiar you will be with their products. And make sure you learn to switch sell your clients. To do this, you need to identify the appropriate competitor among your preferred suppliers for whatever brand they are looking at.

Third, you will establish good relationships with the supplier’s employees and this will result in better customer service and more favours being granted when they are needed.  And if there are problems post-travel, an agent who produces good sales for a supplier will always have an edge – trust me, I know this!  This makes the relationship work for your customers, too.

And lastly, if you find a host agency that rewards you each time you book a preferred supplier, then you will make more money, even up to 100 per cent of the available commission. A win for all concerned!

There are many ways you can support your preferred suppliers …. actively recommending them to your clients, of course, but also by featuring them in your local marketing, attending their product launches and training, and hosting consumer nights or other events to promote their products.

Look for a host agency that offers fewer, not more, preferred agreements and rewards you the most for booking these suppliers.  Everyone benefits!