Distribution Channels | Traditional Vs. Contemporary Distribution Channels|Marketing | CAPE Tourism.

Summary

In this tutorial on tourism marketing, we explore the concept of distribution channels and their critical role in the industry. The video covers both traditional and contemporary distribution methods, including intermediaries such as tourism wholesalers, tour operators, travel agents, and consolidators. It also delves into the growing importance of e-marketing and social media in reaching customers. The tutorial highlights key roles of intermediaries, like packaging products and conducting market research. By the end, viewers will understand how distribution channels help connect suppliers with tourists, enhancing the tourism experience.

Takeaways

• 😀 A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end customer.
• 😀 Distribution channels can be categorized into direct and indirect forms. In direct channels, customers buy directly from the manufacturer, while indirect channels involve intermediaries like wholesalers and retailers.
• 😀 Traditional distribution channels in tourism include wholesalers, tour operators, travel agents, consolidators, charter brokers, reservation systems, and visitor information centers.
• 😀 Tourism wholesalers buy products in bulk and sell them to travel agents or retailers, without selling directly to consumers.
• 😀 Tour operators create tourism packages by combining different products and sell them to customers via travel agents.
• 😀 Travel agents act as intermediaries, selling travel packages and services to customers and earning a commission from suppliers.
• 😀 Consolidators specialize in bulk purchasing airline tickets and reselling them at discounted rates, often through online platforms like Expedia or Travelocity.
• 😀 Charter brokers are middlemen who help customers book charter flights, negotiating prices with operators and adding a commission to the quoted price.
• 😀 Reservation systems are platforms that facilitate bookings for airlines, hotels, car rentals, and other tourism services.
• 😀 Visitor information centers provide tourists with essential information about a destination, such as maps, lodging, and attractions, often located at ports of entry or airports.
• 😀 Contemporary distribution channels in tourism include e-marketing and social media marketing, utilizing online platforms and digital technologies to promote products and services.

Q & A

What is a distribution channel in the context of tourism?

A distribution channel in tourism is a chain of businesses or intermediaries through which goods or services pass until they reach the end customer.

What are the two main forms of distribution channels?

The two main forms of distribution channels are direct and indirect. A direct channel allows the customer to buy directly from the manufacturer, while an indirect channel involves intermediaries like wholesalers or retailers.

What is the role of intermediaries in distribution channels?

Intermediaries are middlemen who connect buyers and sellers without taking ownership of the product or service. They help in moving goods or services from the producer to the consumer.

Can you name some types of traditional distribution channels in tourism?

Some types of traditional distribution channels in tourism include tourism wholesalers, tour operators, travel agents, consolidators, charter brokers, reservation systems, and visitor information centers.

How do tourism wholesalers operate?

Tourism wholesalers supply products to retail travel agents, and they do not sell directly to customers. They package products in bulk to achieve lower prices due to volume business and exposure.

What is the function of tour operators in the tourism distribution channel?

Tour operators act as intermediaries by packaging tourism products into travel packages. They create these packages and then work with travel agents to sell them to customers.

What are the primary responsibilities of a travel agency?

A travel agency’s primary responsibility is to sell travel products and services on behalf of suppliers. They do not keep stock, and they earn commissions from the difference between the advertised price and the discounted price they pay.

What is a consolidator, and what do they do in the tourism industry?

A consolidator is a high-volume ticket booker who purchases large quantities of discounted tickets, such as flights, and sells them at a lower price than the airline’s published fare. Examples include companies like Expedia and Travelocity.

How do charter brokers function in tourism distribution channels?

Charter brokers act as middlemen between customers and charter flight operators. They find suitable aircraft options for customers, add a commission to the quoted price, and present the final price to the customer.

What are reservation systems in the context of tourism distribution channels?

Reservation systems are platforms where customers can book multiple tourism services, such as air travel, hotels, and car rentals. These systems streamline the booking process for both tourists and service providers.

How has social media impacted contemporary tourism distribution channels?

Social media marketing allows businesses to promote tourism products and services on platforms like Facebook and Instagram. It’s an increasingly popular method for businesses to reach a wide audience, especially for destination promotion and direct bookings.

What is e-marketing and how does it differ from traditional marketing in tourism?

E-marketing, or electronic marketing, refers to the use of the internet and electronic devices for marketing products or services. Unlike traditional marketing, e-marketing includes methods like email campaigns, digital ads, and mobile marketing to reach customers.