Tourism Distribution

Channel
• Meaning of Tourism Distribution Channel
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.
Robert McIntosh defined it as “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. Purpose to make sure that potential travelers
can obtain the information they need in choosing a
vacation or trip and to make the necessary reservation.
Travel Intermediaries
There are three types of travel intermediaries: travel
agents (wholesale and retail), tour operators, and
specialty chanelers.
Travel Agents
A travel agent arranges travel services from suppliers
such as airlines, bus companies, railroads, cruise ship
companies, car rental agencies, hotels and sightseeing
operators. In general, there are two types of travel
agents wholesale and retail.
a. A wholesale travel agent of wholesaler organizes tour
packages which are sold to the public through a
network of retail agents.
b. A retail travel agent sells travel services directly to
the consumer.
Tour Operators
Tour operators deliver the services specified in an
advertised tour package.
Specialty Intermediaries
Specialty intermediaries include incentive travel firms,
meeting and convention planners, hotel
representative, interline representatives, association
executives, corporate travel firms, travel consultants,
motor coach brokers, and the like.
a. Incentive Travel Company – the incentive travel company may either
sell its professional services of planning, promoting and executing
an incentive travel program for a buyer or act as an intermediary for
both buyer and suppliers.
b. Meeting and Convention Planners and Destination Planners –
meeting and convention planners specialize in planning and
organizing meetings mainly for corporate clients and professional
associations. Many of the meeting planners have credentials as
Professional Congress Organizers (PCO’s) or Certified Meeting
Professionals (CMP’s) and are members of Meeting and Planners
International, a professional and educational organization for those
who manage meetings. Destinations planners are independent
professionals who help meeting and convention planners.
C. Corporate Travel Firms
-Firms specialized in handling corporate travel account Motor
coach Brokers
-These intermediaries organize motor coach tours to full-time
professionals
Distribution Channels
• Product supplier-consumer channel
• Product supplier-travel agent-consumer channel
• Product supplier-tour operator-consumer channel
Types of Distribution Channels
1. Consensus Channel
2. Vertically-Integrated
3. Vertically-Coordinated Channels
Strategies
*Intensive Distribution
*Exclusive “
* Selective “