Tourism Distribution ChannelsLesson 4 Ms. Jinky Rose P. Gino-gino

Tourism Distribution Channels

*Mediators between the tourist & suppliers Middlemen. *Also synonymous with Travel Intermediaries & Travel Trade Sector

Channels of Distribution SystemsUnilateral Distribution SystemSupplier Consumer

Bi-level Distribution SystemSupplier Retailer Consumer

Types of Travel IntermediariesTravel Agency Tour Operator

* A person or organization selling travel services on behalf of principals for commission ( Libosada, et al.2007) *Ancillary services

*Packager, Wholesale Tour Operator, Tour Wholesaler & Wholesaler (Cook, et al. 1999) * Tour Package

TRAVEL TRADE : A HISTORICAL PERSPECTIVEDate 1700s 1730 1758 1815

1838

Event & Tourism Significance Height of Grand tour Resorts around the English coast were established. Establishment of Cox & Kings as the 1st travel agency in the world Steamboat services were introduced to London to Gravesend Peninsular & Oriental ( P & O ) company introduced steamship services to India & Far East

Date 1840

1841

1845 1845

Event & Tourism Significance Sir Rowland Hill introduced excursion trains Thomas Cook organized a trip by a train of 570 pax to a distance of 22 miles. Henry Wells American Express company Cook established the Worlds 1st Travel Agency Thomas Bennett introduced first FIT & VIPs

Date 1855

1870

1878

Event & Tourism & Significance Cook started operating package tour, from England to Paris. This was an inclusive tour. Cook introduced traveler cheque & hotel voucher , while American Express used traveler cheques & credit cards Mr. Cook brought the first British Group of tourist at India via P & O steamship company.

Date 1880

1887

Up to 1920

Event & Tourism & Significance Thomas Cook & Sons, established offices at Mumbai & Calculta The company arranged the visit of Indian Princess to Queen Victorias Jubilee Celebration Thomas Cook & Sons & American Express were the only big names in travel trade business

Examples of Travel Intermediaries

Travel Management Company or Travel Agency A commercial enterprise where a traveler may secure information, receive travel advice, and make arrangements to travel by air, sea or land, to any point in the world for a professional fee.Consumer

Supplier

TMC

Functions of a TMCProvides information and expertise. Recommends destinations, products and services best suited to the needs of the client.

Functions of a TMC

Provides assistance in securing travel documents.

Functions of a TMCProcesses travel arrangements.

Functions of a TMCAssists in cases of refunds and cancellations.

Types of Travel Agency According to Ownership

* Sole Proprietorship * Partnership * Corporation

Types of Travel Agency According to Size

Organizational StructureSmall-sized TMC/TAMANAGERSecretary

Administration

Operations

Sales

Organizational Set-UpMedium-sized TMC/TAGeneral ManagerEDP/MIS Secretary Asst. General Manager

Administration

Operations

Sales

Organizational Set-UpLarge-sized TMC/TAGeneral ManagerComptroller EDP/MIS Secretary Asst. General Manager

Administration

Operations (Tours)

Operations (Travel)

Sales & Marketing

Tour Operator travel entity or company that

assembles & operates tour packages, made up of transportation services, accommodations, meal & tour guide.

(Claravall, 2007)

Classifications of Tour Operator1. Local Tour Operator (LTO) 2. Domestic Tour Operator ( DTO ) 3. Inbound Tour Operator (ITO) 4. Outbound Tour Operator (OTO)

Types of Tourist /Travelers According to Personality by WTO served by Travel Agencies1. Adventurer/ Individual Travelers Budget conscious, they do not just appreciate the place but want to experience it. 2. Mainstream Tourists Usually travel in big groups, prefer to see destinations recommended to them. They go on : * Educational Tours * Family Excursions * Corporate Excursions * Vacations

3. Extreme Tourist observant, participative in the traditions, celebrations & customs of the local community

Travel Agency Operations

A. Counter Counseling

*Counter counseling aims to conclude counter sales, which are transactions captured by the travel counselors or counter staff.

Flight Itinerary Planning

Flight itinerary planning is the process by which cities to be visited are arranged in the desired sequence to conform with the passengers desired travel plans, starting from the point of origin to the destinations to be visited in the desired sequence. This way north is 12 oclock, east is 3 oclock, south is 6 oclock and west 9 oclock. When planning a flight itinerary there are three (3) basic rules to follow, namely: 1) avoid crisscrossing, 2) avoid backtracking, and 3) remember that the less carries used, the better.

B. Flight Reservations

Manual Reservations* the traditional way of placing reservation before the advent of e-commerce and the Internet. This method involves direct contact with the suppliers staff by mobile or regular phone.

Electronic ReservationsElectronic reservations were introduced by the use of email correspondence and involve writing to the email address of the supplier and receiving a reply from a department or individual. Another way to place an electronic reservation is through an interactive website where no human contact is involved.

Automated ReservationsAutomated reservations are made through a global distribution system where in the supplier is a member. Unlike electronic reservations where fields or boxes in the screen first, allowing the client to make a choice.

C. Fare Calculation A fare is the amount charged by a carrier of a passenger and his allowable free baggage, and his the current fare which a carrier in the publication it normally uses to publish fares, holds out to the public as being applicable to the class of service to be furnished.

D. Airline TicketingOnly after the reservations have been processed and confirmed and the applicable airfares calculated, can the Ticketing Officer issue an air ticket. The issuance of air ticket is the final step in processing a passengers air travel requirements, It represents a contract between a passenger and a carrier and represents a passengers payment to the travel agent.

E. Documentation*Documentation refers to the process of legally securing the necessary travel papers for prospective passengers. Documentation includes the review of travel documents presented by the prospective passengers to ascertain that the period of validity of these documents has not expired, and that they meet the requirements of the country in transit or destination.

Dis intermediariezation

* Process of debugging the middlemen

Tour Guides

Roles of a Tour Guide

Educator PR Representative Host Caregiver Overseer Coordinator Timekeeper Shepherd