MODULE 12
TOURIS MDI S TR I BUTI ON
CH AN N EL
M odule 12
Micro Perspective
INTRODUCTI ON
This module entitled Tourism Distribution Channel
is about network of intermediaries that
facilitates the sales and delivery of products and
services specifically related to tourism from
suppliers to consumers. A distribution channel is a
chain of businesses or intermediaries through
which a good or service passes until it reaches
the end consumer. It can include wholesalers,
retailers, distributors and even the internet itself.
Tourism Distribution Channel
produces the link between the suppliers
of the travel services and the
consumer. It is a system of distribution
that makes the product available.
Travel Intermediaries
is a business that operates as the
intermediary between the travel
industry (supplier) and the traveler
(purchaser).
Travel agent
TYPES OF 1.arranges travel services from suppliers
TRAVEL such as airlines, bus companies,
INTERMEDIARIES
railroads, cruise ship companies, car
rental agencies, hotels, and sightseeing
operators. In general, there are two
types of travel agents- the wholesale and
retail
Tour Operates
TYPES OF
TRAVEL 1.1.- deliver the services specified in an
INTERMEDIARIES advertised tour packaged.
Specialty Intermediaries
TYPES OF 1nclude incentive travel firms, meeting
TRAVEL and convention planner, hotel
representatives, interline
INTERMEDIARIES representatives, association executives,
corporate travel firms, travel consultants,
motor coach brokers and the like.
Distribution Channels
is a chain of
businesses or intermediaries
through which a good or service
passes until it reaches the end
consumer. It can include
wholesalers, retailers, distributors
and even the internet itself.
1.
THREE
DI S TRI BU TI ON
CHA N N EL S Product supplier-consumer channel- this is a direct
1 distribution without going through intermediaries.
2 Product supplier-travel agent-consumer channel- It is
through an intermediary in the form of a travel agent
who provides products and services to the consumer.
Product supplier-tour operator-consumer channel-
3
making an arrangements with the suppliers such
as block booking on airlines.
1. Consensus Channels- no part of the channel
exercises control over the sytem.
TYPES OF
DISTRIBUTION
CHANNELS
2. Vertically-integrated Channels- the function of
production and retail distribution are owned and
/or controlled by a single company.
TYPES OF
DISTRIBUTION
CHANNELS
3. Vertically-coordinated Channels- the tour
operator ’ s control over the channel comes from
contractual or financial commitments with retail
agents.
TYPES OF
DISTRIBUTION
CHANNELS
Relation of Distribution to Marketing
The distribution system is part of the marketing mix. Once marketing objectives and the
appropriate targets have been established, an appropriate mix is determined.