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TIP > TIP lectures 1 & 2 > Flashcards

TIP lectures 1 & 2 Flashcards

1
Q

What falls under producers in the intermediaries?

A

Tour operators

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2
Q

What is a tour operator (outbound)?

A

They produce tour packages, either purchased directly or through incoming tour operator or DMC’s

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3
Q

What is an incoming tour operator?

A

Produce tour packages for incoming travellers

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4
Q

What are Destination Management Companies/agents (DMC’s)?

A

They are the eyes and ears of a tour operator on a destination and supplier of additional services (e.g. excursions, transfers)

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5
Q

What is a Retail Travel Agency?

A

They sell the packages made by tour operators and add other services (insurance)

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6
Q

What are the key players in the travel industry?

A
  • Tour operators (outbound)
  • Incoming Tour operators
  • Destination Management Companies/agents (DMC’s)
  • Retail Travel Agencies
  • Online Travel Agencies
  • Brick Travel Agencies
  • Representative Travel Association (supportive role)
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7
Q

What are the pro’s of a brick travel agency?

A

They are independent & virtually integrated

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8
Q

What is the role of (online) retail travel agents, regarding (package) travel products from producers?

A
  1. Travel counsellor
  2. Principal role = to supply the public with travel products and services (insurance & foreign exchange)
  3. Income is predominantly earned via commissions
  4. Retail location and choice of reservation systems are key decisions
  5. Impartiality (?!)
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9
Q

What is a representative travel association?

A

They represent the travel industry (tour operators & retail agents)

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10
Q

What are the pro’s of intermediaries?

A
  1. Producers are able to sell in bulk
  2. Producers can reduce promotion costs by focusing on the travel trade, rather than consumer promotion (which is more expensive)
  3. Consumers can avoid search and transaction costs
  4. Consumers can benefit from the specialist knowledge of intermediaries, their market power and the resulting lower costs of products
  5. Destinations can benefit from the marketing, and international marketing, network of many intermediaries
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11
Q

What is the con of intermediaries?

A

The use of intermediaries by producers will result in the loss of margins and their degree of marketing control and influence over the process of distribution

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12
Q

List the role/position of a tour operator (9)

A
  • Combines accommodation, transport and/or entertainment, produces the trip.
  • Determines strategy related to trends (meso/macro) and market developments.
  • Income based on so-called ‘mark-up’.
  • Has global tourism knowledge.
  • Sells product through Indirect & direct selling to OTA, TA and ‘end-client’.
  • Tourist needs = starting point
  • Variating trips: city trips, diving holidays, adventure tours, etc…
  • Last-minute market.
  • Important functions: purchase, contracting and product management (central & decentral).
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13
Q

What are the dynamics for the producers?

A
  1. All players have to add value, so if not rethink your business process.
  2. Increased scale of operations.
  3. Globalisation
  4. Offline -> Online
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14
Q

What is it called when all players have to add value, so if to rethinking your business processes?

A

Dis-intermediation & re-intermediation

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15
Q

What are names for increasing scale of operations?

A

Vertical integration & horizontal integration

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16
Q

What is distribution in travel?

A

An operating structure, system or linkages of various combinations of travel organisations through which a producer of travel products describes and confirms travel arrangements to the buyer

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17
Q

What does quantitative distribution stand for?

A

How many points of sale (= distribution intensity)

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18
Q

What does quantitative distribution stand for?

A

Size, connection with the target group, added value and cooperation

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19
Q

What channels do you have in the distribution for producers?

A

Multi-channel > cross-channel > omni-channel

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20
Q

What are the pro’s of indirect distribution?

A
  1. Lower financial requirements
  2. Distributors’ experience
  3. Wide geographical spread
21
Q

What are the cons of indirect distribution?

A
  1. Paying commissions
  2. Less control
  3. Dependence
22
Q

What are the pros of direct distribution? (6)

A
  1. Lower selling price
  2. Independent distribution channel
  3. More targeted promotion
  4. Own customer base
  5. Creation of brand loyalty
  6. Less wastage: only info/brochures to prospects who have shown interest (print on demand)
23
Q

What are the cons of direct distribution?

A
  1. Higher marketing costs
  2. Fulfilment is crucial: organisation
  3. More staff for reservations and info
  4. Narrow geographical spread
24
Q

What are the purposes of online content aggregator websites?

A
  1. They search across multiple websites, displaying the results in one location.
  2. Travel aggregator websites efficiently collate travel-specific content for tourists to review, such as availability and pricing from multiple sources, a time-saving benefit for users.
  3. Websites tourists have adopted for their information search needs, allowing users the freedom to personalise content feeds and searches.
25
Q

What are examples of travel aggregator websites?

A

Sites such as Travelocity, Kayak, Priceline, Orbitz, Cheaptickets, Lowestfare, and Expedia are examples of popular travel aggregation websites.

26
Q

What do younger travellers (18-24) use aggregator websites for?

A

To fulfil their needs:
- Hedonic
- Innovation
- Social

27
Q

What do older participants use aggregator websites for?

A

For functionality:
- To plan actual trips
- Learn about destination amenities
- Compare price before making a purchase decision

28
Q

What is also potentially useful information for industry?

A
  • Safety and sanitation procedures are important
  • Offering different website functionalities for actual vacationing planning, vacation ideas, and future exotic/unique travel can have added value (to shorten the search process)
  • Travel aggregation should offer more:
    1. Options for follow-up recommendation (via e-mail/text)
    2. Customisation/tailor information
29
Q

What is an example of a smart vertical integration?

A

Metasearch sites + large Online Travel Agents (OTA’s) = mega online travel retailers

30
Q

What are OTA’s?

A

Online Travel Agents

31
Q

What is a multi-channel?
Why does it attract customers?

A
  • Distribution of products using multiple channels.
  • Customers are looking for variety and flexibility
32
Q

What is the process of a multi-channel?

A
  1. Information (website)
  2. Booking
  3. Extra service
33
Q

What are the needs of producers in a multi-channel?

A
  • New channels combining low prices, broad reach, variety and custom products.
  • Flexibility: responding to dynamics in the market.
  • Different products, different channels.
  • ICT developments offer new possibilities.
34
Q

What is a cross-channel?

A

Distribution of products using multiple (direct) channels, offers are identical in each channel.

35
Q

What is the plus for customers? (cross-channel)

A

Customers can access the product everywhere, adjust it anywhere, etc.

36
Q

What are the needs of producers in a cross-channel?

A
  • All products and sales information needs to be accessible at any sales point > seamless experience for customers
  • Flexibility: responding to dynamics in the market
  • Same product, different channels
  • ICT developments offer new possibilities
37
Q

What are points of a cross-channel?

A
  1. Booking on website
  2. Add car hire in shop
  3. Book travel insurance at airport
38
Q

What is an omni-channel?

A

Providing a customer experience by using multiple channels even at the same time while buying a product, following the customer journey.

39
Q

What are the needs of producers in an omni-channel?

A
  • Seamless experience for customer
  • Client at the centre of the experience
  • Using multiple channels simultaneously (if required)
40
Q

What are the roles of the government in the tourism industry?

A
  • Organising
  • Managing
  • Governing
41
Q

What are examples of situations where the government’s role is important?

A
  • Customer protection, safety
  • Huge economic impact (e.g. Greece)
  • Consequences for the environment and host communities
42
Q

When did European legislation start?

A

From 1960s

43
Q

When did the Package Travel Directive (PTD) come into effect?

A

In 1990

44
Q

What did the PTD introduce?

A

Introduced requirements on the organisers and sellers of package holidays to provide greater protection to purchasers of package holidays.

45
Q

In what 3 main areas did the PTD provide greater protection?

A
  1. The provision of information.
  2. Financial protection and repatriation in the event of company failure.
  3. A specific regime for contractual liability in respect of package holidays.
46
Q

What is a package (when it comes to travel industry)?

A
  1. If at least 2 travel services are combined by 1 trader.
  2. Purchased from a single point of sale.
  3. Offered, sold, or charged at an “inclusive’ or total price on one invoice.
  4. Advertised or sold under the term ‘package’ or under a similar term.
  5. Combined after the conclusion of a contract by which the trader entitles the traveller to choose among a selection of different types of travel.
  6. Purchased from separate traders via online booking processes and share all relevant details in not more than 24 hours.
47
Q

What stands for NTA?

A

National Travel Associations

48
Q

What are examples of 3 NTA’s?

A
  1. ABTA
  2. Deutscher ReiseVerband (DRV)
  3. ANVR
49
Q

What is ATOL?

A

Stands for Air Travel Organiser’s Licence. It protects you when you book a holiday with a UK travel company. It ensures you will not lose money or become stranded abroad if your travel company goes bankrupt.

TIP (4 decks)

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