Travel Reference
In-Depth Information
RM and distribution channels
Tourism companies can now make use of a wide variety of distribution channels including
global distribution systems, central reservation systems, traditional and online travel agents,
company websites and mobile applications. E-intermediaries such as Travelocity and Expedia are
often the fi rst port of call for travellers in their search for the right hotel, fl ight or holiday.
This leads to challenges for the companies in that they have to simultaneously manage their
distribution channels to ensure optimization of revenue. Developments such as dynamic pricing
require frequent changes in prices and require an accurate knowledge of inventory availability.
In addition the different channels have different characteristics, costs, revenue potential and
degree of control (Mauri 2012). Notably tourism companies are actively implementing tactics to
direct potential customers to their own website by offering, for example, the best rates available
and utilizing multi-variant analysis to customize promotion and marketing.
Conclusion
For tourism marketers operating in capacity constrained organizations an understanding of
RM is essential. Of the 4 'P's of marketing, price is the one that generates revenue and hence
an understanding how price, time and space interact enables companies to sell their products
or services to the right customers at the right price at the right time. As Cross, Higbie and
Cross (2011: 9) note, 'The essence of this discipline is in understanding customers' perception
of product value and accurately aligning product prices, placement and availability with each
customer segment.' Challenges remain in terms of the integration of RM and CRM to enable
more customer-centric approaches and in the management of the complexity of distribution
channels. Consumers will continue to fl y, stay in hotels, hire cars and take cruises but, given
the variety of providers, it is inevitable that they will only enter into long-term relationships
with those companies who meet effectively meet their needs with fair pricing and in whom
they can trust.
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