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DISTRIBUTION

CHANNEL IN THE

TOURISM

INDUSTRY

Week 14 – May 28, 2022

1. Discuss the importance of distribution in the marketing mix.
2. Identify various distribution channels that can be used in the tourism

industry.

3. Discuss the riles and functions of those distribution channels.
4. Identify the different marketing members
5. Describe how to select channel members.
6. Evaluate the use of franchising.
7. Examine when to use strategic alliances and delivery systems

LEARNING OBJECTIVES

DISTRIBUTION CHANNEL

• (^) The place aspect of a company’s marketing mix. It provides an adequate

framework for making a company’s products or services available to the

consumer (Hudson 2008).

• (^) It is a set of different organizations, independent or not, that are involved in the

process of making products and services for use or consumption. (Shoemaker et

al 2007).

• (^) Distribution systems are often used to move the customer to the product.
• A combination of different distribution channels makes up the distribution

system.

• (^) Distribution channels are a set of independent organizations involved in the

process of making a product or services available to the consumer or business

user (Hudson 2008).

What is Distribution System?

DISTRIBUTION CHANNELS AND ITS FUNCTIONS

7

DIRECTLY

You can target visitors directly

through advertising, brochure

distribution, website, social

media, client referrals and so

on.

INDIRECTLY

Another way to promote your

business is through a third

party (indirectly) by using

tourism distribution channels

such as retail travel agents,

wholesalers and inbound tour

operators.

1. Reservation, purchases and payment can be made online.
2. Companies are not subject to office hours; can be accessed 24/7.
3. It is able to access a wider market who are money rich but time poor. They are

the ones who have access to technology and are tech-savvy.

4. It is able to cut the queueing process or waiting time.
5. It saves on labor costs. Online reservation are facilitated and processed through

a company’s website instead of using hired reservation agents.

6. Product comparisons and evaluation of alternative can be facilitated using

internet.

THE ROLE OF THE INTERNET

MARKETING INTERMEDIARIES

TRAVEL AGENTS

TOUR OPERATORS /

WHOLESALERS

TRAVEL

SPECIALISTS

GOVERNMENT

TOURIST

ASSOCIATION

HOTEL

REPRESENTATI

VES

CONSORTIA CONCIERGE

GLOBAL

DISTRIBUTI

ON SYSTEM

(GDS)

RESERVAT

ION

SYSYTEM

Understand the marketing strategy and target market of the company.

Analyze the regional location and select geographic market area

Select an area within the chosen geographic region taking into consideration the

demographic and psychographic characteristics of the market in the area,

completion and growth potential.

Choose an individual site that is compatible with the business.

IMPORTANCE OF BUSINESS LOCATION

An arrangement between two companies that have decided to share resources to

undertake a specific, mutually beneficial project.

A strategic alliance is less involved and less permanent than a joint venture, in

which two companies typically pool resources to create a separate business

entity.

In a strategic alliance, each company maintain its autonomy while gaining a new

opportunity.

A strategic alliance could help a company develop a more effective process,

expand into a new market or develop an advantage over a competitor, among

other possibilities.

STRATEGIC ALLIANCES

AIRLINES STRATEGIC ALLIANCE

• (^) Star Alliance
• (^) One World
• (^) Sky Team

 Restaurant have another distribution system uniquely available to this tourism sector.

 The delivery system is an easy way for consumers to have food conveniently brought to where

they are.

 Fixed delivery numbers of most restaurants is also an added factor, as consumers remember it

more easily.

 With the development of efficient softwares, customers ‘telephone number and address are

already recorded.

 The telephone agent just needs to verify and take orders. Delivery time commitment for most fast

food chains is within thirty minutes.

 Delivery fees vary form a fixed amount to a percentage based on the amount ordered. Its

convenience and relatively cheap cost encourages customers to patronize delivery service.

DELIVERY SYSTEMS