Tripadvisor is taking greater control over tour operator prices by increasing commissions

"Tripadvisor Experiences increases commission rates and introduces a single minimum rate, depending on the type of tour operator and location," reads the e-mail received by tour operators, which confused many, reports ...

"Tripadvisor Experiences increases commission rates and introduces a single minimum rate, depending on the type of tour operator and location", Reads the e-mail received by tour operators, which confused many, he reports Shift.

The e-mail also states that Tripadvisor Experiences "adjust the retail price of your products to match our new commission rates in your destination“, Although the company claimed that the new policy will not affect the fees that operators receive for reservations.

"We hope to create a more balanced market with a single minimum commission rate for all operators of your type and in your area.", It is stated in the e-mail. "A balanced market will allow travelers to focus on the quality and uniqueness of your experience."

Tourpreneur, a travel tour podcast that published parts of the e-mail, said Tripadvisor "left many of their tour and activity partners in a trance".

They also feel that operators are worried that customers could get angry if they book a higher price through Tripadvisor or its sister company Viator than the one published on the tour operator's website.

Laurel Greatrix, a spokeswoman for Tripadvisor, said the new policy "brings compliance with our prices and balances the market".

Changes are underway, she said, and the company is in the process of communicating with operators around the world.

Jared Alster, co-founder and executive director of strategy at marketing agency Wildebeest, said Tripadvisor's use of the term "balanced market" is actually "commission collection code".

The move makes sense from a Tripadvisor perspective, Alster said:

"They sit on a pile of search and booking data and can implement dynamic pricing models to earn more per user, or product type and location. The question is, why haven't they done it before?"

This move by Tripadvisor comes a week after the restructuring of its business experience-related business sector. In the third quarter of last year, they recorded a 46 percent drop in revenue in the sector.

Source / photo: Skift; Tripadvisor; Pexels

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