Organizations in the distribution proce
Sharuque Amin
HRTM 4280 Domestic and International Tourism
Dr. Aixa Ritz
A tourism distribution channel is a process or an operating structure, system or linkage which brings forth the products of the producer travel organizations and puts it into the market through a chain that sells to the travellers. (Goeldner & Ritchie, 2012) This chain is very similar to the normal market distribution process in which the producer produces the product and ships it to the wholesalers and then the wholesalers provide the retailer with the product to sell in the market. The revenue that comes from the product goes to the producer who pays incentives to the wholesaler and retailer. In the distribution of tangible goods there is no revenue loss if the product is not sold because it can be sold later but for the tourism sector the product is intangible and if it is not sold then the revenue is lost forever. For example if a cruise line is supposed to set sail on a particular day and there are a number of vacancies then after the cruise starts those vacancies are lost revenue.
In the trending world people travel for business and generally for pleasure but travel arrangements are very difficult. For travelling the required things that are needed is tickets, hotel and clearance but sometimes it is very hard to get everything that a person desires. This is where the travel agency comes in they act as a middle man between the producers and the consumers providing them with everything they need. A travel agent has to be an expert and knowledgeable in in schedules, routing, currency, prices, regulations, destinations, and all other aspects of travel and opportunities. In short they are counselors who helps save the clients time and money. But currently the travel agents are becoming less and less with every passing year and their place is being taken by the online travel agencies. The most important thing is that the tourism authority in Thailand has certified travel agents all
HRTM 4280 Domestic and International Tourism
Dr. Aixa Ritz
A tourism distribution channel is a process or an operating structure, system or linkage which brings forth the products of the producer travel organizations and puts it into the market through a chain that sells to the travellers. (Goeldner & Ritchie, 2012) This chain is very similar to the normal market distribution process in which the producer produces the product and ships it to the wholesalers and then the wholesalers provide the retailer with the product to sell in the market. The revenue that comes from the product goes to the producer who pays incentives to the wholesaler and retailer. In the distribution of tangible goods there is no revenue loss if the product is not sold because it can be sold later but for the tourism sector the product is intangible and if it is not sold then the revenue is lost forever. For example if a cruise line is supposed to set sail on a particular day and there are a number of vacancies then after the cruise starts those vacancies are lost revenue.
In the trending world people travel for business and generally for pleasure but travel arrangements are very difficult. For travelling the required things that are needed is tickets, hotel and clearance but sometimes it is very hard to get everything that a person desires. This is where the travel agency comes in they act as a middle man between the producers and the consumers providing them with everything they need. A travel agent has to be an expert and knowledgeable in in schedules, routing, currency, prices, regulations, destinations, and all other aspects of travel and opportunities. In short they are counselors who helps save the clients time and money. But currently the travel agents are becoming less and less with every passing year and their place is being taken by the online travel agencies. The most important thing is that the tourism authority in Thailand has certified travel agents all
Bibliography: Goeldner, C. R., & Ritchie, J. B. (2012). Tourism Principles, Practices, Philosophies. John Wiley & Sons.