ADHM 141 Lecture Notes - Lecture 18: Worldspan, Horizontal Integration, Vertical Integration
22 Jun 2018
School
Department
Course
Professor
Tourism Distribution is unique
There is no physical distribution system in tourism
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Tourism services are perishable
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Packaging of complementary tourism services is very important
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Traditional tourism distribution system
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Integration and classification of channels
Vertical integration refers to the ownership by one organization of
all or part of a tourism distribution.
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Horizontal integration refers to the ownership of similar
businesses by one organization in the tourism distribution channel.
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Travel Trade Intermediaries
Tour wholesalers and operators
- Commercial tourism firms that specialize in the manufacture
of travel package.
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Retail travel agencies
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Corporate travel departments
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Incentive travel planners
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Convention-meeting planners
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Other intermediaries and electronic distribution
e-intermediary tourism service is popular
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Tour Wholesalers and Operators
By definition, a wholesaler does not sell directly to the public but
receives reservations through other travel intermediaries.
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Airline and railway companies have wholesaling divisions.
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Functions of Tour Wholesalers and Operators
1. Tour planning and preparation: begin with market research
2. Tour marketing: brochure distribution, advertising, personal
selling, and other sales promotions
3. Tour administration
4. Tour evaluation
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Functions of Retail Travel Agencies
1. Distribution and sales network
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- Travel agents bring together the seller and buyers of travel
2. Reservations and ticketing:
- The placement of reservations and distribution of tickets
(mainly for airline) are traditional roles.
- In the early 1970s, CRS s were first introduced.
- During the 1990, four major GDSs emerged (Amadeus,
Galileo, Sabre, and Worldspan)
3. Information provision and travel counselling
- The most traditional role of the retail travel agent is that of serving
as a travel export
4. Design of individualized tour itineraries
- The travel agent arranges all the air travel and land arrangements
for an individual customer in the traveller's destination choice : The
preparation of FIT(Foreign independent tour)
Corporate Travel Departments
Corporate travel departments are a relatively new phenomenon in
tourism.
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Since about the 1970s, many corporation, government agencies,
and non-profits have created their own in-house corporate travel
departments.
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Reasons for Creating Corporate Travel Departments
1. To establish company-wide travel policies
2. To negotiate the best prices on travel
3. To save the corporation money in its travel costs
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Functions of Corporate Travel Departments
1. Negotiations with carriers and suppliers : negotiate the lowest
possible travel prices
2. Development of corporate travel policy
3. Monitoring of travel expenses and travel policy compliance
4. Reservations and ticketing
5. Meeting and incentive planning
6. Monitoring travel agency performance
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Functions of Convention – Meeting Planners
MICE(Meetings, Incentive travels, Conventions, & Exhibitions) have
enjoyed great growth since the 1970s.
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Functions of Convention – Meeting Planners
1. Convention and meeting planning: RFPs(request for proposals)
and site inspections
2. On-site coordination: plays a crucial role during the staging of
each event as the liaison between the sponsoring association or
company and the service providers at the destination.
3. Convention-meeting evaluation
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DISTRIBUTION SYSTEM
Thursday, May 4, 2017
12:35 PM
Document Summary
There is no physical distribution system in tourism. Packaging of complementary tourism services is very important. Vertical integration refers to the ownership by one organization of all or part of a tourism distribution. Horizontal integration refers to the ownership of similar businesses by one organization in the tourism distribution channel. Commercial tourism firms that specialize in the manufacture of travel package. Other intermediaries and electronic distribution e-intermediary tourism service is popular. By definition, a wholesaler does not sell directly to the public but receives reservations through other travel intermediaries. Functions of tour wholesalers and operators: tour planning and preparation: begin with market research, tour marketing: brochure distribution, advertising, personal selling, and other sales promotions, tour administration, tour evaluation. Functions of retail travel agencies: distribution and sales network. Travel agents bring together the seller and buyers of travel: reservations and ticketing: The placement of reservations and distribution of tickets (mainly for airline) are traditional roles.
