Distributors help travel companies reach agents and customers far beyond their own offices. A distributor recruits and supports local sub-agents, while the travel company provides inventory, technology and pricing. The model works well when distributors are managed with clear rules, good systems and regular reviews. This article covers the practical side of distributor management.
Choosing and onboarding distributors
- Verify business registration, tax details and references.
- Agree territories or segments to avoid conflict between distributors.
- Sign agreements covering commissions, credit, responsibilities and exit terms.
- Set up distributor accounts with branding, users and permissions.
- Train distributors on the platform and your processes.
Sub-agent recruitment
Distributors usually recruit sub-agents themselves. The platform should let them register sub-agents, collect documents, approve or reject applications and assign each sub-agent to pricing groups. The travel company may keep the final approval for compliance.
Credit management
- Set credit limits for distributors based on their history and security deposits.
- Let distributors set credit limits for their sub-agents within their own limit.
- Show outstanding balances and due dates at every level.
- Block bookings automatically when payments are overdue.
Credit is where most distributor risk lies, so automated controls are essential.
Commission structures
- Markup-based: distributors add their own markup on top of your price.
- Commission-based: you pay distributors a percentage or fixed amount per booking.
- Override commission: distributors earn a share of their sub-agents' bookings.
- Incentives: extra rewards for reaching sales targets.
Whatever the structure, the system should calculate earnings automatically and show statements to each distributor.
Targets and performance
- Monthly sales and booking targets by product.
- Number of active sub-agents.
- Growth compared with previous periods.
- Cancellation rates and customer complaints.
Regular reviews with distributors, using shared dashboards, keep goals clear and relationships healthy.
Support and communication
Distributors need fast answers for their sub-agents. Give them a support channel, escalation contacts and access to booking details. Announce new products, offers and policy changes through the portal so the whole network stays informed.
Managing risk
- Monitor unusual booking spikes and credit usage.
- Keep security deposits proportional to credit.
- Audit sub-agent onboarding periodically.
- Have clear processes for suspending distributors who breach terms.
Technology that supports distributors
- A distributor dashboard with sales, earnings, sub-agent activity and balances.
- Tools to set sub-agent markups and credit within approved limits.
- Branded portals and documents for the distributor's network.
- Automated statements and commission calculations.
- Announcements and offers pushed to the whole network.
When distributors can run their network independently inside your platform, they grow faster and need less of your team's time.
In practice: fixing a credit problem
A travel company found that one distributor's sub-agents had large unpaid balances, putting the distributor, and in turn the company, at risk. It introduced automatic blocking at the sub-agent level when payments were overdue and required distributors to approve credit increases above a threshold. Overdue balances across the network fell, and distributors appreciated the tools to control their own risk.
Frequently asked questions
Should distributors have exclusive territories?
Exclusivity can motivate distributors but may limit growth. Many companies use exclusivity with performance conditions.
Can distributors use their own brand?
Yes, many B2B2B platforms support distributor branding for their sub-agents.
Key takeaways
- Clear agreements, onboarding and territories set distributors up for success.
- Automated credit control at every level manages risk.
- Transparent commissions and performance reviews keep the network growing.
Manage distributors and sub-agents in one system with our B2B2B travel portal.
