TOURISM

DISTRIBUTIO
N
CHANNEL
Learning
Outcomes
Define tourism distribution channel
Describe the type of travel intermediaries
Discuss the functions of specialty intermediaries;
Compare travel agents with tour operators;
Describe the distribution channel;
Explain the relation of distribution to marketing; and
Discuss the distribution strategies.
Meaning of 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.
 DIRECT INDIRECT

CONSUMER

Mass Outlets

Retail Travel agents

Wholesalers

Suppliers
Transportation Lodging Food Sightseeing Others
TRAVEL INTERMEDIARIES
THERE ARE THREE TYPES OF TRVEL
INTERMEDIARIES:

1. Travel agent (whole sale and retail)

2.Tour operators
3.Specialty channels
TRAVEL AGENTS
Travel agent arranges travel services
from supplier such as airlines, bus
companies, rail roads, cruise ship
companies, car rental agencies, hotels
and sight seeing operators. In general,
there are two types of travel agents.
1. Whole sale travel agents or
wholesalers organize tour packages
which are solve to public through a
network or retail agents.
2.Retail travel agents sell travel
services directly to the consumer.
TOUR OPERATORS

Delivers the services specified is an

advertised tour package.
A tour operator usually offers several tour
packages in a single reason.
Tour operators who are reffered to as
ground operators normally provide services
at the destination only and they do not
package transportation to or from the
destination.
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.
The following are examples of
specialty intermediaries:
1.Incentive travel company
2.Meeting and convention planners and
destination planners
3.Corporate Travel Firms
4.Motor Coach Brokers
DISTRIBUTION CHANNELS
There are three distribution channel.
These are:
1.Product suppliers-consumer channel- This is
direct distribution without going throught
intermediaries.
2.Product supplier-travel-agent-consumer
channel – This is the most popular form of buying
services and products in the tourism industry.
3.Product supplier-tour-operator-consumer
channel –The tour operator strives to create
demand.
Types of Distribution Channel

1. Consensus Channels- no part of the channel

exercises control over the system.
2. Vertically-integrated Channels- the
functions of production and retail distribution are
owned and/ or controlled by a single company.
3. Vertically-Coordinated Channels- the tour
operator’s control over the channel comes from
contractual or financial commitments with retail
agents.
Relation of Distribution to Marketing
- the distribution system is the part of marketing mix.
Once marketing objectives and the appropriate targets
have been established, an appropriate mix is determined .

The product offered may be modified.

The promotion strategy may also change once the retail
have agent does not cart any inventory, there is little or no
incentives for the agent to promote a specific destination.
The Pricing policy of the supplier will also change
depending on the decision to distribute directly or
indirectly
Strategies
There are three strategies, namely:

1.Intensive distribution strategy involves maximizing the

exposure of the travel product by distributing through all
available intermediaries.
2.Exclusive distribution occurs when supplier or
wholesaler limits the channels and outlets for the product.
3.Selective distribution is a strategy which is between
intensive and exclusive distribution.
THANKYOUUUU
PO!!!