Of all the industries today, travel works within one of the most interesting dynamics. Direct suppliers such as hotels, airlines, and car rental companies compete for the same customers as the online travel agents who source those direct suppliers with customers.

If you're a direct supplier, it's like biting the hand that feeds you: Why in the world would you compete with enterprises that provide you with business? Simple. Tapping into online travel agents, such as Priceline or Expedia, will provide hotel, airline, and car rental companies built-in customer bases that can quickly drive revenue, but the OTAs will often also take an exorbitant share of each sale.

That's why travel brands are using affiliate marketing to acquire customers directly. When your own affiliates advertise your wares on their sites, you have a much better chance of securing customers instead of allowing them to fall to a competitor, as is often the case with OTAs. Affiliate marketing is also much more efficient, as the commissions you pay an affiliate are typically a fraction of what you pay an OTA.

What's more, capturing customers directly can establish loyalty. Direct suppliers' brands can build relationships with customers directly, which often inspires customers to return directly to them the next time they book.

Ensuring a better customer experience also provides you a platform on which to highlight the benefits of working directly with your hotel, for example. It's all about repeat business.

So, how do you get the most out of an affiliate program? Try these five tactics:

1. Look at the affiliate landscape. If OTAs already send you customers, then affiliates of those OTAs will also send you customers. It's always more cost-effective to eliminate the middleman and establish direct affiliate relationships.

Take your research an extra step by searching keywords associated with your industry and any adjacent ones. You'll turn up results you might not even have considered, and chances are you'll find an affiliate that suits your strategy.

2. Set customer acquisition goals. Before launching any digital marketing campaign, determine exactly how much you're willing to spend per lead or sale. This number is essential for negotiating either the percentage per sale or fixed price you'll pay affiliates for each new customer acquired through their sites. If you're unable to keep the margin in the black, you'll need to rethink your goals and expectations of this channel.

3. Evaluate competitor programs. Any competitor's affiliate program can provide a wealth of information on what might work for your business. Research other industries and look for companies similar in size to your own. Compare commission rates to make sure you're competitive. All these practices can help guide the direction of your affiliate marketing efforts.

4. Compare to other marketing efforts. Look at the other digital channels you're using. If you're not already leveraging paid search, SEO, or especially remarketing (the lowest-hanging fruit of all), you may want to venture down one of these channels before launching an affiliate program. They are easier and will deliver a return on investment more quickly than it takes to set up a successful affiliate program. After all, if you're not bidding on your key terms, your competitors might be — and they'll be converting a customer at a higher cost. Pursue an affiliate only if you have those bases covered.

5. Take stock of your resources. Affiliates represent one of the most important and efficient channels for your brand, but they're beneficial only if you have the right resources in place. Those resources require assistance from an outside organization, such as one with a background in affiliate marketing or an agency that specializes in this channel. Like your customer acquisition goals, determine what you can afford — and what's necessary, for that matter. Not all affiliate programs require 40 hours per week to manage.


Some of the major OTAs don't care which travel brand ends up with the purchase; they simply want a sale. Wouldn't you rather choose your partner and have more control over the transaction? That's where affiliate marketing can come in, and often at a much lower cost than your average OTA.

Chris Kramer
Founding Partner - House of Kaizen
573.445.0678
House of Kaizen