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

a system of distribution that makes the product available

An operating structure, system, or linkage of various combinations of travel organizations through which a producer of travel products describes and confirms travel arrangements to the buyer.”— Robert McIntosh

Distribution may be direct or indirect. True of False

it occurs when the producer sells directly to the consumer

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

can achieve better results in the field of distribution and selling than the producer himself through specialization. They have direct contact with the markets and potential customers which would be difficult and more costly for the producer;

assemble the heterogeneous service of different producers into a “package” of services that is meaningful and attractive to the customer

not only create a complete package of tourist serviceschoiceslso sources of information about destinations, types of services, and their advantages and disadvantages, thus giving the potential tourist a wide range of choice and alternatives.

3 types of travel intermediaries

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

2 types of travel agents

organize tour packages which are sold to the public through a network or retail agents. They do not deal directly with the consumer and they may or may not operate the tours it markets.

sell travel services directly to the consumer. They handle the actual sale of tours, air tickets, and other services. They are compensated by the supplier of wholesaler for the sales he or she made.

deliver the services specified in an advertised tour package.

a combination of two or more travel service components put together and sold as a single unit. Packages may be for individuals or groupsets put together and or unescorted.

usually offers several tour packages in a single season.

who are referred to as ground operators normally provide services at the destination only and they do not package transportation to or from the destination.

who specialize in services for incoming visitors particularly tourists from foreign countries.

play a crucial role in the travel industry by connecting manufacturers (suppliers) and consumers. They influence how, where, and when travel products are distributed.

They plan, promote, and execute incentive travel programs for buyers or act as intermediaries between buyers and suppliers. It is often given as bonuses to sales force members who meet their quotas.

These professionals specialize in organizing meetings for corporate clients and professional associations. They may hold credentials like Professional Congress Organizers (PCO) or Certified Meetings Professionals (CMP).

Independent professionals who assist meeting and convention planners by organizing support activities such as city tours, limousine services, and special events.

specialize in managing corporate travel accounts.

2 approaches in handling corporate travel accounts

Corporations collaborate with travel agents. This option provides an established market and increases worker productivity due to reduced shopping efforts.

Corporations create their own travel agency. The main advantages are convenience and personalized service. Corporations can now negotiate discounted fares for significant travel volumes with multiple airlines.

organize motor coach tours for full-time professionals.

represents a chain of businesses or intermediaries through which the final buyer purchases a good or service. It includes wholesalers, retailers, distributors, and the Internet.

3 distribution channels

This is direct distribution without going through intermediaries. It is the direct selling of airline tickets and hotel rooms to the consumer.

This is the most popular form of buying services and products in the tourism industry. It is through an intermediary in the form of a travel agent who provides products and services to the consumer.

The tour operator strives to create a demand. He or she makes an agreements with the suppliers such as block booking or airlines, hotels, restaurants and attractions to produce a travel package which is sold to the travel agent or directly to the consumer.

3 types of distribution channels

A distribution channel in where several participants in the system works together for their mutual interest. It is also said that no part of the channel exercises control over the system.

A distribution channel in where the functions of production and retail distribution are owned and/or controlled by a single company and may exert control over the entire channel activity through retail outlet ownership and organization of the channel.

This channels are led by tour operators in which the tour operator's power of control over the channel comes from the contractual or financial commitment with retail travel agents. Franchising is an example of this system

3 strategies commonly used in distribution

involves making a product available in as many outlets as possible. This strategy aims to maximize market coverage and make the product easily accessible to consumers.

involves carefully selecting a limited number of outlets to distribute a product. This strategy is commonly used for products that require special handling, expertise, or have a higher price point.

involves granting exclusive rights to a single distributor or retailer to sell a product in a specific geographic area or market segment. This strategy is commonly used for luxury brands, premium products, or products with limited availability.

dynamic and multifaceted sector that plays a significant role in the global economy, cultural exchange, and environmental conservation.

Travel within one's own country for leisure, business, or recreation, including visits to tourist spots, cultural events, and outdoor activities, boosting the local economy.

Travel to foreign countries for leisure, business, or cultural exchange, aiming to boost economies, foster cultural understanding, and promote peace.

Travel to remote areas for physically demanding activities like hiking and rafting, aiming to provide unique experiences while promoting conservation and cultural appreciation.

Visiting farms and vineyards for leisure or education, supporting local farmers, promoting sustainability, and preserving agricultural traditions.

Traveling abroad for medical treatment to access quality healthcare at lower costs or with shorter waiting times, often combining medical procedures with leisure activities.

Traveling to experience and learn about a destination's cultural, historical, and natural heritage, aiming to preserve, promote, and celebrate unique heritage assets while contributing to local economies.

Traveling for professional purposes like conferences, meetings, and trade shows, focusing on networking, knowledge exchange, and economic activities to boost local economies.

Traveling to explore and engage with a destination's cultural aspects, aiming to promote cross-cultural understanding, appreciation, and respect while supporting the preservation of cultural heritage.

Sustainable travel to natural areas that conserves the environment, supports local communities, and promotes meaningful experiences while minimizing negative impacts.

Traveling to rural areas to stimulate economic development, preserve local cultures, promote sustainable practices, and provide authentic travel experiences away from urban centers.

Travel activities within urban areas promoting cultural exchange, historical exploration, economic development, and leisure activities, contributing to local economies and enhancing the quality of life for residents.

Traveling on cruise ships to explore multiple destinations with onboard amenities and activities, providing passengers with a convenient and leisurely vacation experience while benefiting visited destinations economically.

Traveling to religious or spiritual destinations for worship, reflection, and personal growth, fostering cultural and religious exchange while supporting local economies and preserving religious heritage.

Traveling for physical, mental, and emotional well-being through activities like spa treatments and meditation retreats, promoting holistic health practices and supporting wellness-related businesses in destination areas.

who specialize in services for incoming visitors particularly tourists from foreign countries