Tourism Distribution Channel

TOURISM
DISTRIBUTION
CHANNEL
TOURISM DISTRIBUTION CHANNEL
The tourism distribution channel produces

the link between the suppliers of travel
services and the consumer. It is a system of
distribution that makes the product
available.
Robert Mcintosh defined it as "an

operating structure, system, or
linkage of various combinations
of travel organizations through
which a producer of travel
products describes and confirms
travel arrangements to the
buyer."
1. Direct Distribution
occurs when the producer sells

directly to the consumer.
2. Indirect Distribution
takes place when the sale to the

consumer is made through an
intermediary.
TRAVEL
INTERMEDIARIES
A TRAVEL AGENT arranges travel

services from suppliers such as
airlines, bus companies,
railroads, cruise ship companies,
car rental agencies, hotels, and
sightseeing operators. Types of
travel agents include wholesale
and retail.
TYPES OF TRAVEL
AGENTS
WHOLESALE TRAVEL RETAIL TRAVEL

AGENTS OR WHOLESALERS AGENTS
sell travel services directly to the
organize tour packages which are sold consumer. They handle the actual sale of
to the public through a network or retail tours, air tickets, and other travel services.
agents. They do not deal directly with They are compensated by the supplier or
the consumer and they may or may not wholesaler for the sales he or she made.
operate the tours it markets. The consumer does not pay any fee for
the services of the retail agents.
TOUR
OPERATORS
Deliver the services specified in

an advertised tour package. The
services offered by a tour
operator may vary from basic
airfare, transfers, hotels, meals,
and sightseeing, to
entertainment.
1 2 3
Some operators own They are organized Tour operators who are
buses, hotels, or other according to the referred to as ground
facilities, or they may specification of a operators normally
obtain ground services wholesale travel agent provide services at the
from a contractor such as who markets them under destination only and they
specific hotels, bus the agency's name do not package
companies, restaurants, through the retail agents transportation to or from
car rental companies, or of the agency or through the destination.
attractions. airlines.
SPECIALTY
INTERMEDIARIES
- include incentive travel firms, meeting and

convention planners, hotel representatives,
interline representatives, association
executives, corporate travel firms, travel
consultants, motor coach brokers, and the
like.
- They may represent either buyers or

suppliers and have the power to influence
how, where, and when the travel product will
be distributed.
-They may receive commission fees
from clients or serve as salaried
employees who offer travel services
on behalf of their organizations.
Incentive Travel Company
Meeting and Convention Planners
and Destination Planners
Corporate Travel Firms
Motor Coach Brokers

DISTRIBUTION
CHANNELS
PRODUCT PRODUCT
PRODUCT
SUPPLIER- SUPPLIER-TOUR
SUPPLIER-
TRAVEL AGENT- OPERATOR-
CONSUMER
CONSUMER CONSUMER
CHANNEL
CHANNEL CHANNEL
A direct distribution without The most popular form of They make arrangements with
going through intermediaries. buying services and products the suppliers such as block
It is the direct selling of airline in the tourism industry. An booking on airlines, hotels,
tickets and hotel rooms to the intermediary in the form of a restaurants, and attractions to
consumer. travel agent who provides produce a travel package which
products and services to the is sold to the travel agent or
consumer. directly to the consumer.
TYPES OF DISTRIBUTION
CHANNELS
Distribution channels have three

classifications: consensus channels;
vertically integrated channels
controlled by intermediaries/retail
travel agents; and the vertically-
coordinated channels led by
producers/tours operators.
1 2 3
Consensus Channels Vertically-integrated Vertically-Coordinated
No part of the channel Channels Channels
exercises control over the The functions of The tour operator's control
system. The several production and retail over the channel comes
participants in the system distribution are owned from contractual or
work together for their and/or controlled by a financial commitments
mutual interest. single company. with retail agents.
Franchising is an example
of such a system.
THE RELATION OF
DISTRIBUTION TO MARKETING
Once marketing objectives and the appropriate
targets have been established, an appropriate mix
is determined. The chosen marketing mix will reach
the market segments and fulfill its objectives. The
system of distribution selected will affect parts of
the marketing mix.
1. The product offered may be modified
2. The promotionstrategy may also change once the
retail agent does not carry any inventory, as there is little
or no incentive for the agent to promote a specific
destination.
3. The pricing policy of the supplier will also change
depending on the decision to distribute directly or
indirectly.
THANK
YOU!
END SLIDE

Tourism Distribution Channel

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TOURISM

The tourism distribution channel produces

Robert Mcintosh defined it as "an

occurs when the producer sells

takes place when the sale to the

A TRAVEL AGENT arranges travel

WHOLESALE TRAVEL RETAIL TRAVEL

Deliver the services specified in

- include incentive travel firms, meeting and

- They may represent either buyers or

Incentive Travel Company

Meeting and Convention Planners

and Destination Planners

Corporate Travel Firms

Motor Coach Brokers

Distribution channels have three

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