Why Every Tour Operator and Attraction Needs a Distribution Agreement (Yes, Even You)

In the fast-moving world of tours and attractions, relationships with resellers and distribution partners—from OTAs to inbound operators and wholesalers—can open doors to broader audiences and more bookings. But if you're working with these partners without a formal distribution contract in place, you're putting your business at risk.

Here's why a handshake deal or a friendly email isn’t enough.

1. Unclear Commissions = Disputes Waiting to Happen

When there’s no contract, there’s no guarantee your commission structure will be respected—or even remembered. Are you paying 20%, 25%, or something different during peak season? Is GST included? What happens when you raise your prices?

Without clear terms:

• Commission rates may be contested.

• Payment timelines become vague.

• Refund and cancellation costs could fall entirely on you.

2. Booking Errors and Miscommunication

A contract helps define how pricing, availability, and cut-off times are managed. Without it, your distribution partner might sell tours:

• After your cutoff time.

• For dates or times that are no longer available.

• At incorrect or outdated prices.

The result? Overbookings, disappointed guests, and unnecessary operational stress.

3. You're Taking on More Legal Liability Than You Think

If something goes wrong—a guest is injured, a tour is missed, or a cancellation is disputed—who’s responsible? Without a written agreement:

• Liability isn’t clearly assigned.

• Your business may be the default target for complaints or claims.

• Your insurance coverage may be invalidated if responsibilities weren’t properly documented.

4. Your Brand Could Be Misrepresented

Your brand story matters. So do your tour descriptions, pricing, and photos. In the absence of a contract:

• Outdated or incorrect content may stay live on third-party websites.

• You lose control over how your product is positioned in the market.

• Distributors may fail to update changes or promotions promptly.

This leads to poor guest experiences and bad reviews—for something that wasn’t your fault.

5. Cancellation Confusion = Lost Revenue

If cancellation terms aren’t agreed upfront, your distributor might:

• Offer guests full refunds without checking with you.

• Apply their own policies that conflict with yours.

• Leave you to cover the cost of last-minute no-shows.

6. Customer Data and Privacy Concerns

Many operators assume they’ll receive guest information from distributors—but it’s not always the case. And if personal data is shared, how it’s stored and used needs to be compliant with privacy laws like GDPR or the Australian Privacy Act.

No agreement = no clarity on who owns the customer relationship or how their data is handled.

Protect Your Product (and Your Peace of Mind)

A formal distribution contract might sound like legal overkill—but it’s not. It’s a foundational business tool. Even a simple agreement ensures everyone is on the same page and provides a point of reference when things don’t go to plan.

If you’re ready to take control of your distribution strategy, start by formalising your relationships. Your future self—and your bottom line—will thank you.