Working in Market - Italy

Distribution system

The online environment plays a key role in Italy for destination selection with multiple points of influence during planning. Consumers expect quick, personalised service and solutions, are embracing a multi-channel approach when it comes to booking, with an increasing trend of using online channels for bookings, especially for flights. Traditional operators however, remain the main booking channel for long haul and special interest travel, such as groups and the honeymoon segment.

Wholesalers/large agents

The travel distribution landscape in Italy is notably fragmented, with the top five travel brands accounting for only 16% of all air ticket sales to Australia. The dominance of a few specialised agencies in selling Australian travel packages underscores both the destination’s unique appeal and the expertise required to serve this market effectively. 

Commission level: 12% - 20%

• The majority produce brochures (with few still printing catalogues) on Australia combined with New Zealand and Pacific Islands. These operators sell their products through travel agencies and key distributors also own travel agency networks or have significant shares in these networks. 
• The honeymoon segment is one of the major for these operators, representing between 40 to 70 per cent of their total business to Australia. 
• Consolidations and mergers have impacted the biggest players in the market however the market structure has remained stable over time. 
• The major wholesalers in Italy are: Turisanda (Alpitour Group), Discover Australia (Quality Group), Go Australia, Alidays, Naar, Creo, Idee per Viaggiare, Volonline and Mappamondo. 

Retail agents

Commission level: 10% - 14%

• Retail agencies are very influential in Italy, managing much of the traditional distribution. 
• There are over 6000 travel agencies in Italy. They are spread throughout the market with over 70 per cent concentrated in central and northern Italy. Travel agency networks represent about 80 per cent of total agencies. 
• There are four main travel agency networks representing around 5300 retails. Of these the top five are Welcome Travel Group, Geo Travel Network, Gattinoni / Robintur, Bluvacanze and UVET.  

Online

Commission level: 6% - 12%

• Consumers are increasingly using online channels and marketplaces for bookings, various trip components especially for flights. 
• The most used Online Travel Agencies (OTAs) are: Booking.com, Expedia, eDreams, Agoda, Gotogate and Airbnb 

Aussie Specialists

• The Aussie Specialist Program is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia. 
• There are over 900 qualified Aussie Specialists in Italy. This includes 32 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program. 

Inbound Tour Operators

Commission level: up to 30%

Inbound tour operators (ITOs) form a key part of the distribution chain in Italy, linked with Italian wholesalers that run Australian programs. Key ITOs include AOT/ATS Pacific, Pan Pacific and Across Australia. 

Trends

Distribution

• Young consumers, especially working holidaymakers, are increasingly booking direct with airlines and using digital marketplaces 
• The Italian online travel agency (OTA) market remains somewhat fragmented, with global players maintaining a significant share. They sell predominantly short/medium haul travels or flights only. 
• Tour operators are still key distributors for long-haul travel, with online channels used as a research and planning tool and booking platforms. 
• Luxury operators either independent or affiliated to Virtuoso and/or Traveller Made are emerging as key travel counsellors for premium travellers. 

Planning and purchasing travel

• Whilst Italian expenditure per trip in Australia registered a +13% increase vs FY 2024 Sept the overall expenditure adjusted for inflation shows a 96% spend recovery. When looking at IVS expenditure performance in the leisure segment vs. 2023 Italy registered a +38% increase compared to a moderate +13% overall (across all segments).  
• Italian consumers are searching for value deals, particularly via online channels. Internet transactions for travel continued to grow in Italy and increased in total travel sales share. 
• Traditional retail agencies remain an important channel for long haul, complex destinations such as Australia. Retail agents also remain a vital source of information alongside travel guides for Italian consumers. 
• Price sensitivity, pricing and competition are key challenges 

Special interest

• Special interest segments out of the Italian market include youth, honeymoon and luxury. Honeymoon is one of the main segments for special interest tour operators, which are particularly active in their marketing.
• It’s increasingly common that some travel agencies with a tour operator licence sell destinations upon request, buying directly from inbound tour operators (ITOs).
• The youth segment has performed very well in recent years; however the traffic is not directly driven by specialist operators. A number of operators selling language courses have recorded good growth for Australia, whereas Working Holiday Visa Makers (WHVM) often plan and book directly online. Key players include Go Study Australia, Interstudio, EF and WEP. The demand in the youth market has given rise to new tour operators specializing in group travel. Among the most promising ones are Weroad, Stograntour, Ketrip, Blueberry, and Sivola. Specialized primarily in medium-haul destinations or mass-market locations with a moderate budget.

Planning a visit to market

Top tips for sales calls

• Make sure you know the product and positioning of a tour operator before meeting with them. Product managers expect your products to be relevant to their clientele.
• An average sales call with a product manager should last between 45 to 60 minutes.
• The best time for sales calls is January to May and October to early December.
• The key market centres to visit are Turin, Milan and Rome but specialised operators are spread throughout the market.
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s Tourism Export Toolkit.