WEEK 5

Tourism Distribution Channel

produces the link between the suppliers of travel services and the consumer.

Direct Distribution

occurs when the producer sells directly to the consumer;

Indirect Distribution

takes place when the sale to the consumer is made through an intermediary.

Travel Agents

arranges travel services from suppliers such as airlines, bus companies, railroads, cruise ship companies, car rental agencies, hotels, and sightseeing operators.

Wholesale Travel Agents

wholesalers organize tour packages which are sold to the public through a network of retail agents.

Retail Travel Agents

agents sell travel services directly to the consumer. They handle the actual sale of tours, air tickets and other travel services.

Tour Operators

deliver the services specified in an advertised tour package. are referred to as ground operators, normally provide services at the destination

Tour Package

is a combination of two or more travel service components put together and sold as a single unit.

Special 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.

Travel Incentive 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.

Quotas and Received Bonuses

Incentive travel is given to members of a sales force who have reached their ___ __ ____ in the form of travel.

Meeting and Convention planners

specialize in planning and organizing meetings mainly for corporate clients and professional associations.

Corporate Travel Firms

specialize in handling corporate travel accounts.

Motor Coach

These intermediaries organize motor coach tours to full-time professionals.

Consensus Channels

no part of the channel exercises control over the system. The several participants in the system work together for their mutual interest. Distribution channels of this type are found in North America and the United Kingdom.

Vertically Integrated Channels

the functions of production and retail distribution are owned and or controlled by a single company. A tour operator may exert control over the entire channel activity through retail outlet ownership and organization of the channel. This system is usually found in West Germany where tour wholesalers control not only their own chain of retail outlets which deal exclusively with the products of one wholesaler. but also their own system of direct mail distribution.

Vertically Coordinated Channels

the tour operator’s control over the channel comes from contractual or financial commitments with retail agents. Franchising is an example of such a system.

Intensive Distribution Strategy

involves maximizing the exposure of the travel product by distributing through all available intermediaries.

Exclusive Distribution

occurs when a supplier or wholesaler limits the channels and outlets for the products.

Selective Distribution

is a strategy which is between intensive and exclusive distribution.

Selective or Exclusive Distribution

is suitable for products that have a high unit price.