Newly-set-up operators should avoid working with travel agents as they stop you from owning the customer.
Speaking at the Aito conference in Brussels over the weekend, former Hoseasons boss Richard Carrick said although agency distribution does work for some companies, start up costs can be cheaper through online distribution.
He added it also has the additional benefit of allowing the business to take control of the customer.
“I don’t think travel agents are ideal for you, it can work for you and I’m not saying it can’t, but if I was setting up a company then I wouldn’t advocate travel agent distribution,” he said.
“I want to own the customer. Online is a great opportunity – few are doing it well or as cost effectively as they could.”
However, he urged operators to ensure they are using their websites as effectively as possible by first making sure they have as many opportunities as possible for potential customers to get in contact and then ensure they respond.
“If you’re not going to respond to people don’t invite them to contact you,” Carrick added.
He said operators must work on their search engine optimisation, pay per click and affiliate partnerships to ensure they are getting the most out of their websites.
He also urged operators to focus on the experiences they offer as opposed to the destinations.
Carrick said: “I don’t think geography, in terms of product, is a point of difference with some exceptions. There are still some parts of the world that people find difficult to access.”