Module 12

• 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."


  Robert Mcintosh
• may be direct or indirect.


  Distribution
• The success of tourist service providers depends on

  their ability to promote and advertise as well as their

  ability to gain access to the intermediaries.
• Intermediaries 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 and a "package" of services that is meaningful and attractive to the

  customer.

  intermediaries
• Intermediaries not only create a complete package

  of tourist services but also 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.
• There are three types of travel intermediaries:

  travel agents (wholesale and retail), tour

  operators, and specialty channels.
• Arranges travel services from different suppliers.

  There are 2 types of travel agents, the wholesale

  travel agents and the retail travel agents.


  Travel Agents
• deliver the services specified in an advertised tour package. The services offered by a tour operator may vary from basic airfare,

  transfers, hotels, meals, and sightseeing, to entertainment.

  Tour Operators
• Some tour operators own buses, hotels, or other facilities or they may obtain ground services from a contractor such as specific

  hotels, bus companies, restaurants, car rental companies, or attractions.
• include incentive travel firms, meeting and convention planners, hotel representatives, interline representative, association

  executives corporate travel firms, travel consultants,

  motor coach brokers, and the like T intermediaries

  may represent either buyers or suppliers and have the

  power to influence how, where, and when the travel

  product will be distributed.

  Specialty intermediaries
• The following are examples of specialty

  intermediaries;
• may either sell s professional services of

  planning, promoting, and executing an incentive

  travel program for a buyer or act as an

  intermediary Tor both buyer and Suppliers.

  Incentive travel is given to members of a sales force

  who have reached their quotas and received

  bonuses in the form of travel.

  Incentive Travel Company
• specialize in planning and organizing meetings mainly for

  corporate clients and professional associations.

  2. Meeting and Convention Planners and Destination

  Planners
• Many of the meeting planners have credentials as

  Professional Congress Organizers (PCO) or Certified

  Meeting Professionals (CMP) and are members of

  Meeting and Planners International, a professional and

  educational organization for those who manage

  meetings.
• specialize in handling corporate travel accounts.

  There are two ways of handling corporate travel

  accounts. The first is for a corporation to work with a

  travel agent. The second is tor a corporation to

  establish its own travel agency. The advantage of the

  first option is that it offers not only an established

  market but also increases worker productivity

  because once a business relationship is established,

  there will be less shopping to be done.


  3. Corporate Travel Firms Corporate travel firms
• These intermediaries organize motor coach tours to full-time professionals.


  4. Motor Coach Brokers
• There are three distribution channels. These are: 1. Product supplier-consumer channel 2. Product supplier-travel agent consumer channel

  3. Product supplier-tour operator-consumer

  channel
• Types of Distribution Channel

  1. Consensus Channels 2. Vertically-integrated Channels 3. Vertically-Coordinated Channels
• In a consensus channel, no part of the channel

  exercises control over the system. The several

  participants in the system work together for their

  mutual interest. Distribution channels of this type are

  found in North America and the United Kingdom.
• In a vertically-integrated channel, the functions of

  production and retail distribution are owned and/or

  controlled by a single company. Since tour operators

  have emerged from the retail travel agency business,

  vertically- integrated channels controlled by retail

  travel agents are usually found in the United

  Kingdom, West Germany, and North America.
• The channel comes from contractual or financial

  commitments with retail agents. Franchising is an

  example of such a system. In West Germany,

  franchising is a large part of travel distribution. The

  franchisor of a particular Company agrees to retail

  only through certain retail outlets and to promote no

  other methods of distribution. The retail franchise

  benefits from the marketing activities of the

  franchisor

  Vertically-Coordinated Channel
• The distribution system is part of the marketing

  mix. Once marketing objectives and the appropriate

  targets have been established, an appropriate mix is

  determined. The chosen marketing mix will reach

  the market segments and fulfil its objectives. The

  system of distribution selected will affect parts of

  the marketing mix.

  RELATION OF DISTRIBUTION TO MARKETING
• INTENSIVE DISTRIBUTION STRATEGY


  involves maximizing the exposure of the travelproduct by distributing through all available intermediaries.
• occurs when a supplier or a wholesaler limits the channels and outlets for the products.


  EXCLUSIVE DISTRIBUTION STRATEGY
• strategy between intensive and exclusive.

  SELECTIVE DISTRIBUTION STRATEGY