Organizations in the Distribution Process - Tourism: Principles, Practices, Philosophies - page 169

Automated Distribution

Using telephone lines, the satellite ticket printer (STP) enables a travel agency to print tickets
electronically in an of ce of a corporation that the agency serves, thus eliminating the cost of
delivering tickets. If this corporation wishes to use a particular agency's expertise, automated

distribution allows it to do so, regardless of the distance involved. Also, the corporation ' s travel

expenses can be summarized into one periodic account — a bene cial arrangement.

CHOOSING CHANNELS

Any marketing executive must decide which combination of distribution channels would be most
productive. One of his or her most important tasks is researching

and identifying distribution possibilities. Then, the particular travel product can be integrated into the
distributor

choosing channels ,whichinvolves —

s operation. Some channels are very evident, such as the Internet, travel agencies, and tour
operators. However, depending on the individual product, additional distributors such as tour companies,
specialty channelers, incentive travel firms, corporate travel departments, hotel sales reps, and associations,
can be very sales effective. Often, associations have huge numbers of members, which make them
particularly good avenues for increasing sales. Suppliers will typically use multiple channels of distribution.

'

SUMMARY

Tourism channels of distribution are organizational links in a travel product producer's system of
describing, selling, and con rming travel arrangements to the buyer. Such channels are needed
because it is impractical for any supplier to own sales outlets in every market city. It is much more
feasible and productive to distribute the product through, for example, 15,000 retail travel agencies or
online travel agencies. There are specialty channelers of many kinds.
The Internet is a force in the sale of travel today. It will continue to grow in importance in the future
and have additional impacts on the travel distribution system. Travel distribution channels are similar
to those used in other industries. But tourism products are intangible. They cannot be stored and sold
another time. An airplane seat, if not occupied on a given trip, is revenue lost forever.

E KEY CONCEPTS E

American Society of Travel Agents
automated distribution
choosing channels
consolidators
corporate travel departments
distribution channels
e-commerce
home-based travel seller

hotel sales representatives
incentive travel rms
intermediaries
Internet
ITB Berlin
National Tour Association
online travel agencies
receptive service agencies

specialty intermediaries
Tourism 2.0
tour wholesalers
trade fairs & shows
travel agencies
United States Tour Operators
Association

E INTERNET EXERCISES E

The Internet sites mentioned in this chapter plus some
selected additional sites are listed for your convenience on
the companion Web site for this topic,
www.wiley.com/college/goeldner .

ACTIVITY 1
Site Name: Expedia Travel

URL: www.expedia.com