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Tourism Distribution Process - Coggle Diagram
Tourism Distribution Process
Types of distribution channels
Indirect channels
OTAs
A web-based market place, selling holidays/ travel products via Internet, ( > 400 OTAs )
Benefits
Accessibility, convinience
Vast selection
Price comparision
Flexible packages
Reviews and recommendations
Roles
Bridge between providers and travelers
Negotiating better rates
Streamlined booking process
As an intermediary
Tour operators/ Tour wholesalers
4 types
Consolidators
Have contract with airline => Specialization
Wholesaler + Retailer
Sell air tickets – sizeable discounts
The retail travel agents
The independent wholesaler
The operator of motor coach bus
Offering package tours at low price than individual traveler can arrange
Most belong to Travel Agencies Association
Consolidating the services into one package => sold through travel agents to consuming public
GDSs
Role: Create new trends, global distribution network
3 main streams
Amadeus
Travelport (Galileo, Apollo, Worldspan)
Sabre
Innovations
Travel e-commerce
Graphic seat selection
E-ticketing
Lowest fare search
Single-screen fare display
Special channelers
Meeting Planners
Association Executives
Hotel Rep, Firms
Travel Consultants
Corporate Travel Offices
Travel Supplier Sales People
Incentive Travel Firms
Travel agents
An expert counselor
Emphasis on leisure
A middle man
Mostly in origin regions
Changing from commission to charging fee
Dominant distributors
Sell both
Prepared package tours
Prepares individual itineraries
Direct channels
Internet
Advantages
New marketing medium
E- commerce
Empowers consumers to plan and book travel
Direct selling from supplier => consumer more possible
Disadvantages
Out of date informations
Right to privacy
Require user's attention
High tech but not high touch
Security of the site
Future trends
Automated distribution
Direct sale – online booking
Distribution systems (SABRE, ABACUS)
Travel Agency Associations
Commission reduction
Multi-channel use
Overview of distribution channels
Characteristics
No physical product in inventory or flows
Mainly intangible products/ services
Temporal product
Like other industries, products reach consumers through
Distributors
Wholesalers
Middlemen
Importance
Essential link: Connects suppliers to customers
Enables more effective sales
Has distinctive characteristics compared to other industries
Fast-changing, driven by technology
Definition
Methods or systems used to sell the supplier's travel products through organizations