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H&T Distribution System (The role of intermediaries - Bring…
H&T Distribution System
The role of intermediaries -
Bring travelling public and tourism service suppliers together
Need a whole range of tourism
Airline tickets, car rentals, places to stay, places to eat, places to shop, tickets and admissions to attractions, and information about things to do and see
Available to large numbers of potential customers in a cost-effective way
Types of Distribution Channels - Tourism services are sold to the customers
Two-level distribution channel
Simplifies the travel process for consumers and is often more efficient and effective for tourism suppliers.
Types of tour
Independent tour
Least structured
Travellers set their own itinerary
Escorted tour
Most structured
Complete package with all tour elements.
Begins & ends on a set date
Specific and detailed itinerary
Travel by motor coach with a tour escort/manager
Why purchasing a tour package?
Convenience -
Shorter decision-making process
One-stop shopping -
Pay at time of purchase
Cost savings -
Chapter, bulk discounts and savings
Special treatment -
Preferential treatment
Worry free -
Tour escort/manager takes care of the group.
Sales/retail outlets are compensated by service suppliers
Mark-up
basis
Commission basis
Service fee
Consultation fee
Booking airlines, hotels, rental cars, etc
Other services
Three-level distribution channel
Many of the same activities and characteristics found in the two-level distribution channels
Another layer of intermediaries and business organizations engaged in planning, preparing, marketing and operating vacation tours
Tour Operators
Consolidators
Applies to other suppliers such as hotels, car rentals and cruises
Internet provides consolidators with more market opportunities
Excess inventory of unsold airline tickets and then resell these tickets at discounted prices
Very special combination of wholesalers and retailers
Meeting Planners
Incentive/event/convention planners
Employed by corporations, associations, and others who need their specialised services
Meeting planner is the detailed planning of business MICE, tradeshows, tournaments and association gatherings; etc.
Destination Management Companies (DMC)
Provide ground handling services for their destination
“Sell” their destination to overseas meeting planners
“Expert” of their destination
Services
Transfers
Car rental and other transportation
Airport meet-and-greet
Tours
Translation
Conference/convention venues and logistics
Theme events
Collaborations
Receptive Service Operator (RSO)
Inbound Tour Operator
Ground Operator
One-level distribution channel
Simplest form of distribution
Direct access to tourism suppliers
Directly with travellers without the assistance of intermediaries
Evolved to incorporate Internet technologies
Airlines have been the most aggressive service suppliers in attempting to expand their marketing efforts