CHAPTER 12 and 13 Flashcards
(36 cards)
An operating structure, system or linkage of various combinations of travel organizations through which a producer of travel products describe and confirms travel arrangements to the buyers
TOURISM DISTRIBUTION CHANNEL
A system of distribution that makes the product available.
TOURISM DISTRIBUTION CHANNEL
To make sure that potential travelers can obtained the information they need in choosing a vacation trip.
-To make necessary reservation.
PURPOSE OF TDC
occurs when the producer sells directly to the consumer.
Direct Distribution
takes place when the sale to the consumer is made through an intermediary.
Indirect Distribution
can achieve better results in the field of distribution and selling than the producer himself through specialization. They have direct contact with the market and the potential customers which would be difficult and more costly for the producer;
Intermediaries
assemble the heterogenous service of the different producers into a “package” of services that is meaningful and attractive to the customer; and
Intermediaries
not only create a complete package of tourist services but also sources of information about the destination, types of service, and their advantage and disadvantage, thus, giving the potential tourist a wide range of choice and alternatives.
Intermediaries
-organize tour package which are sold to the public through a network or retail agents
-do not deal with the consumer and they may or may not operate the tours it markets
Wholesaler
Arrange travel services from suppliers such as airlines, bus companies, railroads, cruise ship companies, car rentals agencies, hotels and sightseeing operators.
TRAVEL AGENTS
-Sell travel directly to the consumer.
-Handle the actual sale of tours, air tickets and other travel services.
-They are compensated by the supplier or wholesaler for the sales he/she has made.
Retail Travel Agents
-Deliver the service advertised in a tour package.
-Offered basic airfare, transfers, hotels, meals, and sightseeing, to entertainment.
-Some of them own busses, hotels or other facilities.
TOUR OPERATORS
Referred to as GROUND OPERATOR.
TOUR OPERATORS
Combination of 2 or more travel service components put together and sold as a single unit.
TOUR PACKAGE
It represent either buyer or suppliers and have the power to influence how, where, and when the travel product will be distributed.
SPECIAL INTERMEDIARIES
May receive commission fees from clients or serve as salaried employees who offer travel services on behalf of their organizations.
SPECIAL INTERMEDIARIES
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.
Incentive Travel Firms
specialize in planning and organizing meetings mainly for corporate clients and professional associations.
Meeting and Convention Planners
PCO
Professional Congress Organizers
CMP
Certified Meeting Professionals
specialize in handling corporate travel accounts. There are two ways of handling corporate travel accounts. The first is for corporation to work with a travel agent. The second is for corporation to establish its own travel agency.
Corporate Travel Firms
These intermediaries organized motor coach tours to full-time professionals.
Motor Coach Brokers
No part of the channels are exercises control over the system
Consensus Channel
Function of production, retail distribution are owned by a single company
Vertically Integrated Channel