Doing Business in the Pacific for Travel Agents, Tour Operators, and DMCs

Australia and New Zealand are often perceived as straightforward, low-risk travel markets. In reality, they operate within highly regulated, mature financial systems where compliance, tax treatment, payroll, and client money handling materially affect margins and operational flexibility.

Demand for Pacific travel remains strong. The challenge is not selling the destination. The challenge is how bookings are structured and settled once confirmed — GST treatment, commission models, FX exposure, supplier contracts, payroll costs, and banking expectations all shape profitability long before departure.

These issues are especially pronounced for inbound operators working with offshore selling agents, overseas wholesalers, or multi-currency client flows. What looks simple on the surface often becomes complex in practice.

Antravia’s Pacific coverage is built country by country. Each guide focuses on how travel businesses actually operate, where financial risk sits, and why margins can narrow quickly when regulatory and cash flow realities are underestimated.

Pacific country guides

--- Australia ---

Doing Business in Australia for Travel Agents, Tour Operators, and DMCs

Australia is one of the most established inbound travel markets in the Pacific and a common operational base for businesses serving Australia, New Zealand, and the wider region.

The operating environment is sophisticated but demanding. GST treatment for tour operators, commission versus margin models, payroll obligations, contractor classification, superannuation, and client money handling all carry real compliance and cash flow consequences.

This guide covers GST application for tour operators and DMCs, FX exposure between AUD and foreign selling currencies, supplier payment structures, payroll and contractor risk, banking and trust account expectations, and the realities of operating in Australia in 2026.

Read the Australia guide → Link here

--- Additional Reading ---

VAT.travel on Australia GST

VAT.travel on New Zealand GST

International VAT Reclaim for Australia and New Zealand

Cross-border themes in Pacific travel

FX exposure still matters

Pacific itineraries are frequently sold in USD, EUR, or GBP while supplier costs are incurred in AUD or NZD. Exchange rate movements between booking and travel can materially affect margins, particularly for longer lead-time trips.

Many operators assume currency stability in developed markets. In practice, FX volatility still erodes margin when it is not actively managed or priced in.

GST timing and cash flow pressure

GST treatment can create timing mismatches between client receipts, supplier payments, and tax remittance. Where deposits are collected well in advance, GST obligations may arise before the related cash has fully settled.

This creates working capital pressure even in profitable businesses, particularly for growing inbound operators.

Payroll and labor costs are structural

Australia and New Zealand have relatively high labor costs and strict employment rules. Misclassification of contractors, incorrect payroll treatment, or underestimating on-costs can quickly distort margins.

Staffing decisions in the Pacific are financial decisions, not just operational ones.

Banking expectations are higher

Banking systems are reliable, but expectations around documentation, audit trails, trust accounts, and segregation of client funds are significantly higher than in less regulated markets.

These requirements affect onboarding speed, transaction monitoring, reconciliation, and audit readiness.

Tax compliance is predictable but unforgiving

Indirect tax and payroll enforcement in Australia and New Zealand is consistent and well documented. Errors are less likely to be ignored and more likely to result in penalties, interest, or audits.

Compliance outcomes depend heavily on correct transaction treatment, contract wording, and reporting discipline, not intent.

Reputation and client money handling matter

Pacific operators often work with overseas agents and wholesalers who rely on them to manage funds correctly. Weak controls around deposits, refunds, or supplier payments can quickly become reputational issues for all parties involved.

Clear money flows and strong financial controls protect both margins and long-term relationships.

How Antravia approaches the Pacific

Antravia understands the realities of running travel businesses in Australia and New Zealand. Each country guide is grounded in local financial and regulatory reality, not generic assumptions.

FX exposure is addressed directly. Cash flow pressure is acknowledged. GST and payroll treatment are explained clearly. Operational friction is included rather than minimized.

This approach reflects how Pacific travel businesses actually operate — and where financial problems arise when complexity is underestimated.

Antravia understands the realities of running travel businesses in Australia and New Zealand. Each country guide is grounded in local financial and regulatory reality, not generic assumptions.

FX exposure is addressed directly. Cash flow pressure is acknowledged. GST and payroll treatment are explained clearly. Operational friction is included rather than minimized.

This approach reflects how Pacific travel businesses actually operate — and where financial problems arise when complexity is underestimated.

Antravia understands the realities of running travel businesses in Australia and New Zealand. Each country guide is grounded in local financial and regulatory reality, not generic assumptions.

FX exposure is addressed directly. Cash flow pressure is acknowledged. GST and payroll treatment are explained clearly. Operational friction is included rather than minimized.

This approach reflects how Pacific travel businesses actually operate — and where financial problems arise when complexity is underestimated.