Tourism Distribution Channel
Research Paper:
MEANING OF TOURISM DISTRIBUTION CHANNEL -is an operating structure, system, or linkage of various combinations of organizations through which a producer of travel products describes, sells, or con firms travel arrangements to the buyer. 1.2 Channels of Distribution -are similar to those of other basic industries such as agriculture or manufacturing. Their products flow to the ultimate consumer through wholesalers, distributors, and middlemen. While there are similarities with other industries, the tourism distribution system is unique. The Internet is a new force in the sale of travel today. Tourism produces mainly services that are intangible. There is no physical product that can be held in inventory and flows from one sales intermediary to another. Instead, the “product”, for example, is a hotel room that is available on a certain day, which is very temporal. If the room is not sold, the revenue is lost forever.
1.3 Types of travel intermediaries A. Travel agencies -is a middleman—a business or person selling the travel industry’s individual parts or a combination of the parts or a combination of the parts to the consumer. - Functions:
-as a broker (bringing buyer and seller together) for the other suppliers, such as hotels, car rentals, ground operators and tour companies. They basically will be the one that will take care in preparing and reserving ticket to airlines for the customer. - History:
Basically it is known that the British company is one of the oldest agencies in the world. It is said that the travel agencies rooted its beginning in the year 1758 and it usually have rich customers. Before they said that the company is a first class bank but they ventured to other business like planning and preparing travels for their customers. It is known that agencies gave it way only in the 19th century. A famous many like Mr. Cook developed a travel package for customers
MEANING OF TOURISM DISTRIBUTION CHANNEL -is an operating structure, system, or linkage of various combinations of organizations through which a producer of travel products describes, sells, or con firms travel arrangements to the buyer. 1.2 Channels of Distribution -are similar to those of other basic industries such as agriculture or manufacturing. Their products flow to the ultimate consumer through wholesalers, distributors, and middlemen. While there are similarities with other industries, the tourism distribution system is unique. The Internet is a new force in the sale of travel today. Tourism produces mainly services that are intangible. There is no physical product that can be held in inventory and flows from one sales intermediary to another. Instead, the “product”, for example, is a hotel room that is available on a certain day, which is very temporal. If the room is not sold, the revenue is lost forever.
1.3 Types of travel intermediaries A. Travel agencies -is a middleman—a business or person selling the travel industry’s individual parts or a combination of the parts or a combination of the parts to the consumer. - Functions:
-as a broker (bringing buyer and seller together) for the other suppliers, such as hotels, car rentals, ground operators and tour companies. They basically will be the one that will take care in preparing and reserving ticket to airlines for the customer. - History:
Basically it is known that the British company is one of the oldest agencies in the world. It is said that the travel agencies rooted its beginning in the year 1758 and it usually have rich customers. Before they said that the company is a first class bank but they ventured to other business like planning and preparing travels for their customers. It is known that agencies gave it way only in the 19th century. A famous many like Mr. Cook developed a travel package for customers
References: Internet: www.hotelmule.com www.travel-insurance-info.us www.ezinearticles.com www.smallbusiness.wa.gov.au www.4u2travel.co.uk www.blackwellreference.com Book/s: Principles, Practices, Philosophies Tourism Ninth Edition by Charles R. Goeldner and J.R Brent Rithchie