Pamantasan ng Lungsod ng Maynila Gen. Luna, cor. Muralla Sts.

, Intramuros Manila

College of Tourism, Hotel and Travel Industry Management

TRM123

Organizations in the Distribution Process

Submitted to: Mr.Tullao

Submitted by: Agabao, Maria Cellyn Caballes, Camille Angelica Garcia, Jazmyne Lunday, Louise Salcedo, Raul

Chapter 7 Organization in the Distribution Process

Introduction The tourism channel of distribution is an operating structure, system, or linkage of various combinations of organizations through which a producer of travel products describes, sells, or confirms travel arrangements to the buyer.

DISTRIBUTION CHANNELS IN THE TOURISM INDUSTRY Distribution channels are increasingly regarded as one of the most critical elements in marketing, as they determine the competitiveness and profitability of organizations (Christopher, 1991; Gattorna, 1990; Stern and El-Ansary,1992). Tourism distribution channels attract more attention by contemporary researchers and strategists. Their purpose is twofold: to provide information for prospective tourists and intermediaries as well as to establish a mechanism which would enable consumers to make, confirm and pay for reservations (Middleton, 1994; Bitner and Booms, 1982; Welburn, 1987; Holloway, 1998). In tourism, the position of the distribution sector is much stronger: trade intermediaries (travel agents and tour operators of course, but also charter brokers, reservation systems and other travel distribution specialists) have a far greater power to influence and to direct demand than their counterparts in other industries do. Since they do, in fact, control demand, they also have increased bargaining power in their relations with suppliers of tourist services and are in a position to influence their pricing, their product policies and their promotional activities (WTO, 1975). Several scholars attempt to define the tourism distribution channel concept. Middleton (1994) proposes that a distribution channel is any organized and serviced system, created or utilized to provide convenient points of sale and/or access to consumers, away from the location of production and consumption, and paid for out of marketing budgets. However, this definition ignores the promotional and marketing research activities undertaken by the channels, while it underestimates their information provision function. It also excludes local outlets, such as box offices or incoming travel agencies at destinations. Furthermore, McIntosh defines tourism distribution channels, as an operating structure, system or linkages of various combinations of travel organization, through which a producer of travel products describes and confirms travel arrangements to the buyer (Mill and Morrison, 1985). The promotional element is still ignored but, the information provision function is highlighted. Moreover, the World Tourism Organization (WTO, 1975) suggests that a distribution channel can be described as a given combination of intermediaries who co-operate in the sale of a product. It follows that a distribution system can be and in most instances is composed of more than one distribution channel, each of which operates parallel to and in competition with other channels. Perhaps more accurately Wanhill (1998) suggests that the principal role of intermediaries is to bring buyers and sellers together, either to create markets where they previously did not exist or to make existing markets work more efficiently and thereby to expand market size.

Hospitality distribution channels In hospitality, particularly in the lodging industry, the traditional main distribution channels were the call center and the travel agencies. Over time, other channels were created. For the most part, these new channels acted as intermediaries between the property and the global distribution system (GDS)/travel agent. The advent of the Internet led to profound changes in hospitality distribution. New business models were created, as well as online-based reservations networks, which allowed worldwide exposure to products while avoiding intermediaries such as the GDSs. For detail on this important and complex matter in todays hospitality environment see the section on Internet Channels. An overview of the various channels is presented next. Call center This is a central location phone bank, also called central reservation office (CRO). In its simplest form, it consists of a telephone and a reservation agent. Generally, call centers have the ability to place multiple reservations at the same time through central computer reservation systems (CRSs), usually through an 800 number. Hotel companies may have call centers that serve many different properties within the corporation. Airlines and car rental companies usually have one centralized call center in each of the different countries where they operate, all interlinked through the CRSs. Centralized call centers have the advantage of providing consistent service and decreasing the companys costs, such as management and training. Multi-branded companies, however, may have different call centers and, in some cases, different CRSs within their system, mostly due to mergers and acquisitions. The term CRS reservations is sometimes used to refer to the reservations originating from the call center, even though the CRS serves as an intermediary between most other channels and the property management system (PMS). There are companies that provide third party call centers (e.g. Utell), which may handle all incoming calls or overflowing calls in periods of high demand. They may also provide central reservation services for companies that do not have their own CRS. Global distribution systems These are technologies that allow worldwide real-time distribution. A global distribution system (GDS) contains a database with information on travel products (air, hotel, rental car, etc.), such as schedules, prices, availability, and descriptions. Users are able to access information as well as book and/or purchase the hospitality products. As explained by Burns (2000), The GDS originated as private networks listing only air flights for use by travel agents. In the . . . years since their inception, they have grown to serve a worldwide clientele who use nearly 500,000 access points with a full array of travel services. The four major GDS systems are Sabre, Galileo/Apollo, Amadeus, and Worldspan. Those systems, however, were built on older technological platforms and do not interface directly with most property management systems (PMSs). Intermediaries, the switching companies, provide interfaces between the suppliers and the GDSs. The supplier pays fees per reservation to a GDS and to the switching companies. Because accessing information from a GDS requires a physical GDS terminal and specific training in codes and search techniques, the GDSs are usually used by travel agents and not by the end consumer (Ader et al., 2000). Some operators used the term GDS to refer to the travel agents, mostly because they used to be the main users of the GDSs.

A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located. It is also a middleman- a business or person selling the travel industrys individual parts or a combination of the parts to the consumer.

PTAA- Philippine Travel Agencies Association PTAA represents the Philippine Travel Sector in various international and national associations. PTAA also sits in the tourism councils of the local government units. The Philippine Travel Agencies Association (PTAA) is a fairly young organization born out of a union of the national associations of the outbound travel agencies and inbound tour operators in 1979. Founded to foster unity in the travel industry and to promote the welfare of its members and the travelling public as well, the PTAA has evolved into one that now plays a vital role both in the national and international tourism levels. Top 10 Travel agency (Airlines) / As of February 20, 2012 (Based on cheapest Airfare) 1.Uni-Orient Travel, Inc. 2.Air Asia 3.Cebu Pacific 4.Gulf Air 5.Zest Airways Inc. 6.Singapore Airline 7.Hawaiian Airline 8.Air China 9. Etihad Airway 10. Cathay Pacific Airways & Hong Kong Dragon Airlines

Travel agents Travel agents act as intermediaries between the customer and the supplier. The role of the travel agent is to provide information to the customer as well as to effectuate the booking and purchase of the hospitality product. Examples of travel agents are Carlson Travel, Thomas Cook, and International Leisure Corporation. They access rates and place reservations in a variety of ways. The most common is through a global distribution system (GDS). Travel agents may also contact a property directly, through wholesalers, or by accessing the Internet. The traditional travel agents are also referred to as brickand- mortar travel agents. Travel agents typically work on commission, i.e., they sell rooms at a negotiated rate or at the prevailing rate, and receive a percentage of the sale from the suppliers. A travel agent is an agent middleman, acting on behalf of the client, making arrangements with suppliers of travel (airlines, hotels and tour operators) and receiving commission from the suppliers and/or a fee from the client. A travel agent is thus an expert, knowledgeable in schedules, routing, lodging, currency, prices, regulations, destinations, and all other aspects of travel and travel opportunities. In short a travel agent is a specialist and counselor who saves the client both time and money. Airline Reporting Corporation Airlines Reporting Corporation provides transaction settlement and data information solutions for the travel and hospitality industry. Its settlement solutions include alternative distribution channels, memo manager, online carrier reports, ticket resolution service, electronic miscellaneous document, and document retrieval service solutions for carriers; and document retrieval service, electronic miscellaneous document, IAR, Internet sales summary, and memo manager solutions to travel agencies and corporate travel departments (CTDs). The company also provides industry analysis solutions, such as customer relationship management, market/competitive analysis, marketing effectiveness, network/... The Airlines Reporting Corporation (ARC) regulates ticket sales and reports to the airlines for travel agencies and other ticket outlets and is a corporation owned by certain U.S. air carriers that collectively appoint U.S. travel agencies to represent participating air carriers. It further administers the Area Banks and Area Settlement Program which is a clearinghouse for agent reporting and the settlement of airline ticket sales. ARC became the successor corporation to the ATC, following the agent rights issues trial of ARTA vs. ATC in 1985. While some functions are similar to those of ATC, ARC is designed to operate without the limited antitrust immunity once possessed by ATC. The ARC corporation began formal operations on January 1. 1985. The Airlines Reporting Corporation requires all travel agencies to apply for, and be granted, a 'travel agency appointment' prior to being allowed to sell air travel with airline ticket stock. This agency program binds the travel agent as an agent of the carrier. The agent may receive commissions by representing the airline in the sale of passenger transportation. ARC established its own criteria for which travel agents would be entrusted with its airline ticket stock paper and airline ticket printing plates. Various carriers have now established additional bonding and liability criteria.

The application for an appointment must be approved before operating as an appointed travel agency. ARC will not grant uniform ticket stock until the appointment is granted. ARC's services include: travel agency accreditation; ticket, and ticket number assignment, distribution and control; travel transaction reporting and financial settlement; new distribution technology development and support. Key Executives for Airlines Reporting Corporation Mr. Michael J. Premo Chief Executive Officer and President Mr. Thomas F. Casalino Chief Financial Officer and Vice President of Financial Services Ms. LauriReishus Vice President of Operations Ms. Kathleen O. Argiropoulos Vice President and General Counsel Mr. Randy Black Chief Information Officer and Vice President

Sources:

http://hotelmule.com/wiki/Distribution-channels http://epubs.surrey.ac.uk/1082/1/fulltext.pdf http://www.ptaa.org.ph/aboutus.asp http://wiki.answers.com/Q/Top_10_travel_agency_in_the_Philippines http://en.wikipedia.org/wiki/Travel_agency http://www.travellaw.com/node/311/ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4541531

The Travel Agent VS the Internet Consumers can make their own bookings on internet, or they can also use the services of the travel agent. The particular situation will determine whether the Internet or the travel agency will provide the better solution. Internet - Can increase the scope and reach of a consumers effort. - Allow a person to check hundreds of options or research destinations in depth. REMEMBER: A person has to understand where to look and what questions to ask, otherwise, hours can be wasted surfing the net and can produced unsatisfactory results. The Travel Agent - Customers may save time and achieve savings. - Agents have superior knowledge of the industry and are aware of various lower fares. - Agents are more likely to know enough to check alternative airports. - Agents can search internet as well as their CRS for low fares.

The internet can be a valuable source but, it cannot replace a human being who will provide personalized service to help a client. PHILIPPINES Top 10 Travel agency (Airlines) / As of February 20, 2012 1. Uni-Orient Travel, Inc. 2. Air Asia 3. Cebu Pacific 4. Gulf Air 5. Zest Airways Inc. 6. Singapore Airline 7. Hawaiian Airline 8. Air China 9. Etihad Airway 10. Cathay Pacific Airways & Hong Kong Dragon Airlines

ASTA Top 10 Travel agency (Airlines) 1. American Express Travel 2. CarlsonWagonlit 3. Expedia 4. BCD Travel 5. Hogg Robinson Group 6. Travelocity 7. Orbitz 8. AAA Travel 9. Priceline 10. Liberty Travel

AIRLINES REPORTING CORPORATION (ARC) ABOUT ARC ARC powers the U.S.-based travel network with premier business solutions, travel agency accreditation services, process and financial management tools, and powerful data and analytics. Nearly 16,000 travel agencies and 190 airlines use ARC's settlement services, which in 2011 totaled more than $82 billion. As the industry's gold standard of accreditation, participating agencies and carriers alike trust ARC and can focus on what's important - increasing their revenue.

TRAVEL AGENCY PARTICIPATION Your agency is one-of-a-kind. That's why we offer a participation program to fit the individual needs of agencies of every size and type. Which best describes your agency? I issue air, bus, or rail tickets directly through a GDS.

Ticket Reporting Agency (TRA) Program Ticket Reporting Agency (TRA) participants have the authority to directly issue tickets through a GDS. TRAs have access to ARC's first-class financial settlement services, as well as to numerous travel agency tools. I don't ticket directly through a GDSbut maybe through alternative channels. Verified Travel Consultant (VTC) Program The Verified Travel Consultant (VTC) program is tailored to the growing number of agencies that do not issue tickets directly through a GDS. These agencies have access to all the benefits of ARC participation. I work in my company's corporate travel department. Corporate Travel Department (CTD) Program The Corporate Travel Department (CTD) program provides companies with direct access to ARCs central reporting and settlement processing systems. CTDs receive all the benefits of ARC accreditation, including an individual ARC number.

CAREERS At ARC, our greatest asset is our people. We strive to attract, develop, and retain a talented and diverse workforce that helps us meet and exceed our goals.

Sales and Marketing Finance Information Technology Customer Service Administrative Services

Benefits

Comprehensive Healthcare Benefits 401(k) Saving Plan Work Life Balance Programs Pre-tax Programs Additional Benefits Options

Our Core Values

Excellence Teamwork Innovation Integrity Cost Effectiveness

SALES AND DOCUMENT STATISTICS ARC publishes the financial and operational summary below on a monthly basis providing key airline ticketing data for the benefit of ARC's stakeholders.

ARC PROCESSING DATA OCTOBER 2012

SYSTEM INFORMATION

Carriers

188

Retail Locations1 STP Locations1 VTC Locations1 Average Daily Sales (calendar month)4 Months Oct-12 % change (same month previous year) Domestic Fares International Fares Total Fares $5,747,908,576 1.54% $59,844,621,840 $3,109,759,397 $2,638,149,180 2.25% 0.72% $31,707,415,647 $28,137,206,193 Year to Date 2012

13,688 522 1,576 $14,383

% change (same period previous year) 2.14% -1.72%

0.29%

Airline Fees Taxes and

$475,583,533 $714,370,341

20.96% 3.37%

$5,367,813,116 $7,578,565,112

58.28% 6.19%

ARC PROCESSING DATA OCTOBER 2012

Non-Airline Fees Total Taxes and Fees $1,189,953,874 9.75% $12,946,378,228 22.97%

Credit Card Sales Cash Sales Total Sales* * Refund and Exchange Charges Included

$6,472,428,979

3.51%

$66,672,679,793

4.22%

$566,183,674 $7,038,612,653 $100,750,203

-3.19% 2.93% 8.47%

$7,053,309,277 $73,725,989,070 $934,989,181

-1.07% 3.69% 3.65%

Credit Card Transactions Cash Transaction Total Transactions

10,689,698

1.16%

108,950,115

0.05%

1,371,650

3.16%

15,080,011

-2.20%

12,061,348

1.38%

124,030,126

-0.23%

ARC PROCESSING DATA OCTOBER 2012

Domestic Transactions International Transactions

8,810,703

1.56%

88,418,326

-1.43%

3,250,645

0.90%

35,611,800

2.88%

E-ticket Percentage INDUSTRY DATA

99.85%

0.15%

Number of Flight/Segment Details in ARC Compass3 Number of Unique Origin and Destinations in ARC Compass3,5 Number of Monthly Online Logins to ARC Data Services
1 2 3

2,217,654,849 723,505

229,063

Based on current active status Based on reported/processed data by date of issue Based on 39 months of tickets with itinerary and using ARC Average Daily Sales by ARC-accredited agency locations Using ARC Origin and Destination logic

Origin and Destination logic

Types of Travel Arrangement

Independent Travel (sometimes known in the industry as FIT) o Non-guided, custom trip arrangement of pre-booked lodging + transportation. This can sometimes be self-drive packages which provides custom driving directions and guide books. o Benefit: Have complete independence, on your own schedule.

Private Guided Tour or Custom Guided Tour o Custom Trip Plan designed for you or your private group. This usually includes lodging plus guide plus one or more other travel components (air, airport transfer, car, rail, etc) o Benefit: Set independent itineraries yet get volume discounts which travel companies offer

Escorted Group Tour (fixed departure dates, escorted by tour guide or tour leader, structured itinerary) o Structured journey on which a group of travelers, grouped by a travel company, are accompanied by a travel professional who sees to their needs o Benefit: Dont have to worry about anything (leave it all to the pros) & low price but give up some independence

Vacation Package (not escorted, not customized) o Similar to Independent Tour package but fixed travel components (i.e. not customized) o Benefit: You can get good deals that only travel companies have access to

Others: Includes Adventure Tours, Nature Tours, Eco Tours, Study Tours, and Cruises

Sources: http://wiki.answers.com/Q/Top_10_travel_agency_in_the_Philippines https://www.arccorp.com/index.jsp https://www.arccorp.com/join/travel-agency-participation.jsp https://www.arccorp.com/careers/index.jsp https://www.arccorp.com/news/sales-document-statistics.jsp http://www.zicasso.com/faq/873 http://www.allsaintssec.co.uk/admin/Travel.pd

Independent and Home-Based Travel Sellers There has been a decrease in ARC agents due to larger agencies buying smaller ones and large agencies merging. Another cause of the decrease of ARC agents is people going independent and being home-based. Independents are the fastest-growing segment of the industry. Being an independent and home-based travel seller is good because no one can tell you when to work, how to work or how hard to work and it is possible to work from home by going into business for oneself. Technology has turned just about any location such as home into a sophisticated office from which business can be conducted. The national Association of Commissioned Travel Agents (NACTA), which serves this group says that their growth is fast, going from 100 to more than 2300 members in the past three years. It was established in 1986 as the original association with a mission to represent the interests of independent and home based travel entrepreneurs. Host travel agencies and Supplers who support this growing sector of the distribution channel are also members of NACTA. NACTA continues its objective to promote the professionalism and recognition of this productive group of travel agents. However, the Association has recently expanded its role to focus on the development and training of it members, to enhance and secure their success in retail travel sales. Our new mission statement says it all: The National Association of Career Travel Agents (NACTA) is the foremost Travel Industry Association dedicated to providing the finest education, training, networking and representation in support of Career Travel Agents. NACTA is an affiliate of the American Society of Travel Agents (ASTA). On January 19, 2003, Travel and Trade started publishing Home-Based Trade to serve this market and in 2004, several other publishers created publications for this market.

The Future of Travel Agents So-called experts have been predicting for years that intermediaries would disappear, but experts have been wrong, intermediaries are doing more business than ever before while at the same time there has been an increase in direct selling. The internet has completely transformed travel distribution and sales. It has enabled airlines to directly reach potential customers through their websites. The internet has also facilitated easy access to more information by travel consumers and therefore given them greater opportunity to make informed travel choices. The success of travel agents in the future will depend on their ability to react to customer expectations and meet the needs of the new generation. The internet as a source of abundant information can complicate decision making. In fact, too much information can be confusing for customers. The more travelers have access to information (prices, travel suppliers policies, types of packages, etc), the more they will need advice and assistance to make a choice. The boom of the internet and easy access to information could therefore be to the advantage of the travel agents who are best placed to avail the right information and give unbiased consultancy. The competitive advantage of the travel agent of the future lies in its ability to provide expertise and experience consultancy to meet the diverse and sometimes complicated needs of travelers. Travel agents offer a service that is valued by the majority of clients. The travel Industry cannot get along without travel agents, and they will continue to save clients time and money far into the future , even with the fees they will be required to charge. Today, agents are constantly connected with their clients

through e-mail, twitter and text message, blog their own personal travel anecdotes and post photos online. But at the same time, they offer the human interaction that online review and booking sites cant, and can help create niche, experiential itineraries and secure deals that travelers would have difficulty putting together independently, such as after-hour tours, flight upgrades or rooms in sold-out hotels. Travel agents are still the leading distributors of travel products and services. Agents book a majority of all air travel, 47% of hotel reservations, 87% of all cruise reservations, 45% of car rentals, and 81% of tour packages. Agents are the best professionals to sort through nearly a hundred thousand daily changes in airfare alone. John Naisbitt said in his best-selling book, Megatrends, High-tech requires high touch, a knowledgeable travel agent can provide both high-tech and high touch. A knowledgeable travel agent can provide timesaving, cost-saving, pleasure-adding ingredients that cannot be achieved via computer technology. Travel Agency Organizations American Society of Travel Agents (ASTA) is the largest association of travel and tourism professionals in the world, with twenty thousand members located in over 140 countries. ASTA was established on April 20, 1931. ASTAs purposes are: To promote and encourage travel among people of all nations To promote the image and encourage the use of professional travel agents worldwide To promote and represent the views and interests of travel agents to all levels of government and industry To promote professional and ethical conduct in the travel agency industry worldwide To serve as an information resource for the industry worldwide To promote consumer protection and safety for traveling public To conduct educational programs for members on subjects related to the travel industry To encourage environmentally sound tourism worldwide To be an active ASTA member, they have member qualifications: Abide by ASTA's Code of Business Ethics

Responsibilities of Travel Agent, Premium, International Travel Agency Company and International Travel Agent Associate Members: 1. Accuracy. ASTA members will be factual and accurate when providing information about their services and the services of any firm they represent. They will not use deceptive practices. 2. Disclosure. ASTA members will provide in writing, upon written request, complete details about the cost, restrictions, and other terms and conditions, of any travel service sold, including cancellation and service fee policies. Full details of the time, place, duration, and nature of any sales or promotional presentation the consumer will be required to attend in connection with his/her travel arrangements shall be disclosed in writing before any payment is accepted. 3. Responsiveness. ASTA members will promptly respond substantively to their clients' complaints.

4. Refunds. ASTA members will remit any undisputed funds under their control within the specified time limit. Reasons for delay in providing funds will be given to the claimant promptly. 5. Cooperation. ASTA members will cooperate with any inquiry conducted by ASTA to resolve any dispute involving consumers. 6. Confidentiality. ASTA members will treat every client transaction confidentially and not disclose any information without permission of the client, unless required by law. 7. Affiliation. ASTA members will not falsely represent a person's affiliation with their firm. 8. Conflict of Interest. ASTA members will not allow any preferred relationship with a supplier to interfere with the interests of their clients. 9. Compliance. ASTA members shall not have been convicted of a violation of any federal, state and local laws and regulations affecting consumers. Pleas of nolo contendere, consent judgments, judicial or administrative decrees, or orders, and assurances of voluntary compliance and similar agreements with federal or state authorities shall be deemed convictions for purposes of these provisions. Responsibilities of All Members: 1. Notice. ASTA members operating tours will promptly advise the agent or client who reserved the space of any change in itinerary, services, features or price. 2. Delivery. ASTA members operating tours will provide all components as stated in their brochure or written confirmation, or provide alternate services of equal or greater value, or provide appropriate compensation. 3. Credentials. An ASTA member shall not, in exchange for money or otherwise, provide travel agent credentials to any person as to whom there is no reasonable expectation that the person will engage in a bona fide effort to sell or manage the sale of travel services to the general public on behalf of the member through the period of validity of such credentials. This principle applies to the ASTA member and all affiliated or commonly controlled enterprises.

Be an accredited travel agency, in good standing with IATA or operating in accordance with all applicable laws of the companys country of residence Located outside the United States or its territories Be operated with the intention of making a profit from the travel agency business Have any required licenses to be a travel agency A smaller organization of travel agents is the Association of Retail Travel Agents (ARTA). Their membership is 100% professional travel agents. The purpose of ARTA is similar to ASTA, but ARTA does not supply the range of services provided to the members of ASTA. In the Philippines we have Philippine Travel Agencies Association (PTAA) founded in 1979, its mission is to : To upgrade and professionalize the members of the travel and tourism industry To act as the voice of the Philippine Travel Industry in all local and global concerns

Sources: http://www.nacta.com/index.aspx http://www.travelpulse.com/the-future-for-travel-agents.html http://www.asta.org/Join/content.cfm?ItemNumber=776&navItemNumber=9765 http://www.arta.travel/ http://www.ptaa.org.ph/aboutus.asp

GLOBAL DISTRIBUTION SYSTEMS

GDS or Global Distribution Systems refer to the reservation tool travel agents use when making an air, hotel, car or other travel service booking. Responsible for electronic ticketing, ecommerce, graphic seat selection, lowest fare search capability, and the ability for agents and travelers to view on one screen, public, private/negotiated, consolidator, and web fares. The role of the global distribution system is to distribute the company product to a broad audience in the most efficient manner. A global distribution system means being present 24 hours a day, 7 days a week, 365 days a year. This enables the system users to make reservations or to obtain the desired information when it suits them the most. Internet, as the largest platform of equality, allows small and large companies to be present on the global distribution system thanks to new technologies that are constantly being upgraded.

FOUR MAJOR GDS SYSTEMS (Legacy GDSs) 1. Amadeus A leading transaction processor for the global travel and tourism industry, providing transaction processing power and technology solutions to both travel providers (including full service carriers and low-cost airlines, hotels, rail operators, cruise and ferry operators, car rental companies and tour operators) and travel agencies (both online and offline).Amadeus forms global distribution partnership with Zest Air in the Philippines Zest Air operates seven aircraft and flies to 20 destinations around the Philippines. 2. Sabre Primary component for travel and transportation information for over 55,000 travel agencies, major travel suppliers, Fortune 500 companies and travel Websites around the globe.

3. Travel port: Worldspan and Galileo One of the worlds largest travel content aggregators and distributors, and a leading provider of critical transaction processing solutions, Travel port powers the travel industry on a global scale by connecting buyers and sellers through agency, online and corporate travel channels. Regional distribution systems: SITA-Sahara, INFINI-Japan, AXCESS-Japan, TAPAS-Korea, FANTASIA-South Pacific and ABACUS-Asia and Pacific. THE INTERNET

Makes direct selling from the supplier to consumer more possible. In travel, there have always been direct sales via suppliers offices or telephones but with the Internet consumers can do the booking thereby eliminating travel agency commissions and computer reservation system fees. The Internet gives consumers the information and the power to plan and book their own travel. It also gives travel agents and tour operators the opportunity to have their own sites and greatly expands their reach. It is both an information source and a transaction source. Consequently it is a relatively new marketing medium. Online travel planners, booked travel using the Internet as well as the Airline tickets continued to be the most frequently purchased travel products online. Rental cars were the third most popular travel service/ product booked online. ELECTRONIC COMMERCE

Electronic commerce or e-commerce refers to the selling of goods and services via the internet. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Sources:
http://www.amadeus.com/ph/x161901.html http://www.amadeus.net/plnext/meb/AboutUs.action?SITE=BCEUBCEU&LANGUAG E=GB http://www.sabrehospitality.com/global-distribution-system.php http://www.ecommercetimes.com/ http://www.abacus.com.sg/about.html http://www.fantasiavillas.com/destinations/private-islands/south-pacific-privateislands/

Tour Wholesaler (Also called tour operator) puts together a tour and all of its components and sells the tour through his or her own company, through retail outlets, and/or through approved retail agencies. Wholesalers can offer vacation packages to the traveling public at prices lower than an individual traveler can arrange because wholesalers can buy services such as transportation, hotel rooms, sightseeing services, airport transfers, and meals in large quantities at discounted prices. A company that usually creates and certainly markets inclusive tours and independent tours for sale through travel agents. Often used interchangeably with tour operator, but several distinctions might be drawn: (1) a wholesaler presumably sells nothing at retail; a tour operator often does both; (2) a wholesaler does not always create his own products; a tour operator virtually always does; (3) a wholesaler is less inclined than a tour operator to perform local services. Often these distinctions are not made because many travel companies perform any or all of the functions of travel agent, tour operator and wholesaler. Some Tour wholesaler/Tour operators in the Philippines Annset Holidays, Inc. ANNSET Holidays, Inc . was organized in October 1995 as a dedicated inbound tour operator in the Philippines. A team of travel experts whose experiences run into decades started with few staff members. However the selfless dedication of everyone became the very foundation that accelerated the company's exceptional growth. Within two years of operation, the company opened the call to expand adding travel and outbound services to the list. Baron Travel Corporation Baron Travel is an internationally recognized and accredited full service travel company involved in all aspects of the tourism industry. With its fully integrated services and facilities, Baron Travel is capable of delivering the most complete and most efficient package for tour and travel requirements, at the most reasonable price. Blue Horizons Travel and Tours, Inc. Blue Horizons Travel & Tours, Inc. has two (2) operating divisions: The Outbound Division providing comprehensive international travel service to corporate and institutional clients. The Inbound Division is the ground handler in the Philippines for some of the biggest tour wholesalers in Europe, the Middle East and Asia. Intas Destination Management, Inc. Intas Destinations is an award-winning full-service Tour Operator, Destination Management Company, Events, Meetings and Incentive Planner Travel and Tour Experts since 1981.

Marsman Drysdale Travel Marsman Drysdale Travel Inc. (MDTI) is one of the companies under the Marsman Drysdale Group and is the leading travel and tour company in the Philippines. It specializes in providing excellent business travel services and is a multi-awarded producer and handler of top quality Philippine tours. Rajah Tours Philippines, Inc. Established in 1972 as a small inbound company, Rajah Tours has since grown as a major player in the Philippines travel and tourism industry. With over 30 years under its belt, Rajah tours has become synonymous with reliable service and quality tours in the Philippines. Top tour operators worldwide The U.S. and Canada Trafalgar Tours featured 69 tours across the United States, Canada, and Mexico. Just about all of the major destinations are covered. There is also a range of prices, with 10 starting at under $1,000 per person. A good example of one of these tours is Trafalgar's "Canada's Rockies" tour, which includes visits to Lake Louise, the Columbia Ice fields, and Banff National Park, nine meals, and six nights' accommodations, priced from $999. Globus features what it calls "Open Doors Vacations," which include stays at distinctive hotels and special local cuisine. Maupintour caters to all types of travelers, but has a special brand of trips for "gutsy women." Such tours range from spa getaways to national park hikes. Collette Vacations offers a choice between independent and guided vacations to destinations around the world. Europe Just as Trafalgar Tours tops our list of North America providers, it is the most impressive for Europe tours, too. Trafalgar offers a stunning number of Europe trips: 335 when we searched. At the lower end of the price scale are city stays that include guided sightseeing by bus. The more expensive trips may be longer and include tours of multiple countries. The Grand European is a good example of this variety, with 10 nations visited and a starting rate of $3,650. Insight Vacations boasts more comfort than the competition with its promise of fewer seats and extra legroom on "all European, British and USA and Canada premium itineraries." In addition to its many Europe tours, Tauck World Discovery operates its own cruise line, with sailings to ports across the continent (and around the world). Go Ahead Vacations has its own frequent traveler club, which awards discounts and other special services to repeat customers.

Latin America Go South Adventures specializes in small group tours to beautiful (though environmentally sensitive) areas of Central and South America. Destinations include the Amazon, the Galpagos Islands, and Peru's Inca Trail. We found five-day/four-night Amazon River trips starting at $885. Latour offers packages to 16 different countries across Latin America, with single-country, multi-country, and a-la-carte options. Travcoa is a luxury tour operator that will suit travelers who don't mind spending more to get more. For instance, the company's Amazon River & The Pantanal package spans 17 days, with prices starting at $8,595. Like Travcoa, Abercrombie & Kent specializes in high-end travel, though we did find Costa Rica trips for about $2,500. Asia Pacific Delight World Tours is a clear leader in travel to the Far East. With tours from Turkey to the South Pacific and many countries in between, this agency has an equally wide range of prices. At the budget end, we found air-and-land packages to Beijing from $561, though these include just three nights' lodging. For a more luxurious vacation, Pacific Delight sells "premium tours" that are longer and include components such as Yangtze River cruises. However, prices on those types of trips are still reasonable; we found air-and-land packages from $2,689. Gate 1 Travel offers both independent and guided tour itineraries for travel throughout Asia, including a 10-night Thailand package from $899. General Tours is a good resource for trips to many Asian countries, such as India, to which it offers eight escorted packages. Africa African Travel, Inc.'s tours span the continent, from Egypt to South Africa, and are divided into two main types: safaris and dreamscapes. The former are packaged itineraries with frequent departures throughout the year. Dreamscapes are sometimes shorter, and can be "linked together" to create a full vacation. Overall, the company's prices range from slightly more than $1,000 for a Kilimanjaro trek to $11,895 for a 17-day safari. Bargain hunters may want to check Lion World Tours' "Affordable Africa" deals, none of which exceeds $1,999 in starting price. Pacific Delight World Tours specializes in travel to Asia (see above), but it also offers a wide variety of Africa itineraries. Like Pacific Delight, Travcoa's tours are not limited to one geographic area. And, just as its Latin America packages are geared toward luxury tastes, the agency's Africa tours don't come cheap: Great Empires of West Africa lasts 19 days and carries a price tag of $8,995.

This figure illustrates the position of the tour wholesaler in the basic structure of the travel industry.

Governments IATA, ATA, other

SUPPLIERS Airline & Other Carriers

Any Tour Wholesaler

Hotels Retail Travel Agent or Other Retail Outlet

Other Destination Services

Public 5 Benefits of Using a Tour Operator In this day and age where technology is growing rapidly and everything is going digital; we feel the increased need for independence and to take matters in to our own hands. This is clearly demonstrated through the current trend in travel and tourism where travelers are booking their own holidays online. Although booking online has some benefits, there are limiting factors that come in to play when youre dealing with binary code. Herewith a few reasons why people put their trust in Tour Operators: 1. Knowledge and Experience One of the most important benefits of Tour Operators is that they have an intimate knowledge of the country you wish to visit and the activities you want to partake in. It is with many years of experience in compiling and conducting tours that they have come to know a country like the back of their hands, which means you get to see and experience the very best in terms of attractions, culture and beauty.

2. Buying Power Tour Operators can buy in bulk because they make regular bookings; this means they can get discounted rates that would otherwise be impossible for online individual bookings to achieve. They also have strong relationships with preferred suppliers and tourism partners which can help in reducing the overall cost of your holiday. 3. Value A Tour Operator is a one stop tourism shop that can add immense value to your holiday by providing you with all the services you require under one roof. Be it transfers, transportation, accommodation, exclusive activities, tour guides, day tours, advice or any tourism related matter. A tour operator will be able to assist, making the holiday planning process that much simpler. 4. Safety and Trust Safety is perhaps one of the most important reasons for using a Tour Operator. At the end of the day, nothing gives you peace of mind like knowing you have a human being on the other side that is looking out for you and puts your safety and needs first. Tour Operators are also situated in the relevant country, which enables them to resolve any problems within a moments notice, one more thing a computer cannot do for you. 5. Convenience Last but not least is the convenience factor. Its as simple as telling a Tour Operator where you would like to go, when you would like to go and what youd like to do. 123 and you have yourself a hassle-free tour organized faster than you can say hippopotamus. Some Tour Operators also provide neat extras such 24 hour support, info packs, itineraries, maps, recommended restaurants and so forth. In other words, you can sit back relax and dont have to worry about a thing. Specialty Channelers or Intermediaries Any intermediary between a provider of a travel product and the ultimate consumer of that product; often called a specialty channeler and used to refer to companies that specialize in a particular type of travel, for example meetings and incentive travel. Specialty intermediaries include incentive travel firms, meeting and convention planners, hotel representatives, association executives, corporate travel firms, travel consultants, motor coach brokers, and the like. These intermediaries may represent either buyers or supplier and have the power to influence how, where and when the travel product will be distributed.

The following are examples of specialty intermediaries: a. Incentive travel company/firms the incentive travel company may either sell its professional services of planning, promoting and executing an incentive travel program for a buyer or act as an intermediary for both buyer and suppliers. Incentive travel is given to members of a sales force who have reached their quotas and receive bonuses in the form of travel. b. Meeting and convention planners and Destination planners meeting and convention planners specialize in planning and organizing meetings mainly for corporate clients and professional associations. c. Corporate travel Departments/Firms corporate travel firms specialize in handling corporate travel accounts. d. Hotel Sales Representative Firms some companies specialize in representing hotels, motels, resorts, and destination areas. e. Motor coach Brokers these intermediaries organize motor coach tours to full-time professional. f. Automated Distribution Using telephone lines, the satellite ticket printer (STP) enables a travel agency to print tickets electronically in an office of a corporation that the agency serves, thus eliminating the cost of delivering tickets.

Choosing channels Any Marketing executive must decide on which combination of distribution channels would be most productive. Distribution channels There are three distribution channels. There are: 1. Product supplier-costumer channel. This is direct distribution without going through intermediaries. It is the direct selling of airline tickets, hotel rooms to the consumer. 2. Product supplier-travel agent-consumer channel. This is the most popular form of buying services and products in the tourism industry. It is through an intermediary in the form of a travel agent who provides products and services to the consumer.

3. Product supplier-tour operator-consumer channel. The tour operator strives to create demand. He makes arrangements with the suppliers such as block booking on airlines, hotels, restaurants and attractions to produce a travel package which is sold to the travel agent or directly to the consumer. Demand can be produced by tour operators who buy block of a service or product and sell the package at a reduced price. The bulk purchases generate a lower price than an individual purchase. Thus, a tourist who travels with a group pays less than an individual tourist who buys each component of a trip separately.

Sources: http://hotelmule.com http://www.wowphilippines.co.uk http://www.smartertravel.com http://fairfieldtours.wordpress.com http://books.google.com.ph