chapter13 pdf
TRANSCRIPT
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Chapter 13
Place:Distribution Channel andthe Travel Trade
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Chapter Objectives
1. What are the different kinds of marketingchannels.
2. Distribution Channel in Tourism and
Hospitality Industry.a. Define the terms of distribution mix and travel
trade.
b. List the major travel trade intermediaries.
c. List steps involved in marketing to the traveltrade.
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Objective 1
1. What are the different kinds of
marketing channels?
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What is a Marketing Channel??
A Marketing Channel is a network of allparties involved in moving products or
services from producers to consumers or
business customers.
A Marketing Channel is the structure
linking a group of individuals or
organizations through which product or
service is made available to the consumer
or industrial user.
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Marketing Channels
MarketingChannel
Retailer
Whole-salers
Agent
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Channel Structure for Consumer Goods
Producer Consumer
ProducerConsumerRetailer
Producer ConsumerRetailerWholesaler
Producer RetailerAgent Consumer
1
2
3
4
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1. Producer-Consumer (direct supply channel)
Manufacturers
Customers
The manufacturer and consumer deal directly with each other.
E.g. Factory shop, pick-your-own fruit farm and door-to-door
selling.
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2. Product-Retailer-Consumer (Short Channel)
Manufacturers
Customers
Retailer
Very popular foe larger retailers because they can buy in
large quantities, obtaining a special price (by negotiating the
prices) and delivery arrangements.
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3. Producer-wholesaler-retailer-consumer
(Long channel)
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4. Producer-agent-wholesaler-retailer-consumer
Producer RetailerAgent Consumer
The longest and most indirect channel.
This model is widely used by small organizations who trying
to sell their products in remote markets or when themanufacturer is trying to enter to unknown expertmarket.
Manufacturer chose the agent who have local knowledge,
contact and expertise in selling into the country.
Agentgets commission from manufacturer.
The problems of this channel is manufacturer have totrust the quality of the agents know ledge, commitment andselling ability.
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Distribution Channel for
Tourism and Hospitality Industry
Objective 2
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Distribution Mix and the Travel Trade
Distribution Mix is the combination of thedirect and indirect distribution channels a
hospitality and travel organization uses toreserve and deliver its service to customers.
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Direct Distribution = when the organize assumestotal responsibility for promoting, reserving, and
providing service to customers (Not working withtravel trade intermediaries).
Indirect Distribution = when other organization
or other companies are responsible for promoting,reserving and providing service to customers
(working with travel trade intermediaries/third
party intermediaries).
Indirect Online Distribution Channel = sellingproducts/service through the Internet.
E.g. Agoda.com, Booking.com, Expedia.com
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The Hospitality and Travel Distribution System
Individual and Group Customers
Carriers, Suppliers, Destination Marketing Organizations
Lodging Restaurant/Food Service Airline/rail/bus/ferry
Cruise Line Rental Car
Attractions Casino DMO
Tour Wholesalers
Retail Travel Agent
Corporate Travel
Manager
Convention/
Meeting planners
Incentive Travel
Planners
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Specific Roles and benefits of
Travel Trade Intermediaries for tourism and Hospitality Industry
1.) Retailing the services suppliers, careiers, DMOs at location
convenient for travelers.
2.) Expanding the distribution network for tourism and hospitality
products.
3.) Providing specialized, knowledgeable advice to travelers on
destinations, prices, facilities, schedules, and services.
4.) Assembling vacation. Holiday packages by bringing together an
array destination and the services of suppliers and carriers at all
inclusive price.5.) Organizing and coordinating convention, conferences, and
meeting for associations, corporations, and other organization.
6.) Operating and guiding group tour.
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Individual Travel Trade Intermediaries
Retail travel agents Tour wholesalers and operators Corporate travel managers and agencies Incentive travel planners Convention/meeting planners
Online Travel Companies
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Retail travel agents
Selling the products/services from supplierscarriers and other travel trade intermediaries
in the form ofcommission.
Customers are charged charged in form ofService fees.
Hotel booking, Airline/Cruise/Bus tickets, Traveler
cheque
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Tour wholesalers and Tour operators (1)
Who negotiate price and block the space with supplierand carriers and markup to all elements
to determine an all-inclusive price.
They bought product in bulk or bulk buying and resoldto customers through retail agency.
A tour Operator = Tour Wholesaler!!!?
Inbound Tour Operator specialize in
providing local service to other tour
operators in specific nation or destination.
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Negotiate booking, fares, rate with carriers/suppliers
Establish tour/ package price, print brochures and give totravel agencies
Update information in website
Tour wholesalers and Tour operators (2)
Printed online material
(advertisements)
Remark!!: Wholesalers also a
Trade Advertising
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Corporate Travel Managers and Agencies
A individual departments, divisions, or even
managers that is responsible for booking
their own flights, rooms, and rental cars
Monitor and analyze travel expenditure at a company
wide-level.
Set, communicate, enforce, and adjust travel policy.
Negotiate corporate travel contracts and discount Create strategic meeting management programs
(SMMPs).
Mandate an online system
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Incentive travel planners
Incentive travel is a motivation tool forcompanies/organization by rewarding employees, dealers,
and other who meet or exceed objective, increase
production, increase sell, and enhancing morale andgoodwill.
Incentive Travel Planner are specialized tourwholesalers.
They tailor-made package (transportation, accommodations,meals, etc.)
They negotiate price/block space with carrier and suppliers and
mark-up commission (planning service fees).
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Convention/meeting planners
Convention and Meeting = MICE (Meeting,incentives, Conventions, and Exhibitions).
Convention/Meeting Planner plans and coordinates
their organizations external meeting event. Work for associations, corporations, large non-profit
organizations, government agencies, and educational
institutions.
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Online Travel Companies
Benefit of the online travel companies.
Ability to self-book travel online.
Assistance in planning travel trip.
Online pricing comparisons.
Convenience of accessing travel information.
Immediate confirmation of travel booking.
Instant access to travel information
Potential of securing lover prices on hospitalityand travel services.
Marketing to Travel Trade
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Marketing to Travel Trade
(A three-step Process)
Research and SelectTrade Segment
Decide on thepositioning approach
and marketingobjective
Establish apromotional mix fortravel intermediaries
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1. Key Feeder and market areas - Cities or Regions.
2. Major corporate travel and convention/meeting
accounts.
3. Tour wholesalers and incentive travel planners
1. Research and Select Trade Segment
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Positioning approach
Establish a distinctive image or position in travel
trade.
Marketing objective.
5% increase in the number of travellers.
2. Decide on the positioning approach and marketing objective
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(1)Trade Advertising.
(2) Directories and Computerized Databased.
(3) Personal and Telephone Selling.(4) Trade Sale Promotion.
a. Familiarization Trip or Farms.
b. Contest, Sweepstakes, and Incentive Programs.c. Specialty Advertising Giveaways.
d. Trade Shows.
3. Establish a promotional mix for travel intermediaries
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(5) Merchandising and Brochures.
(6) Public Relation and Publicity.
(7) Cooperative Marketing (Partnership).
(8) Website Access.
3. Establish a promotional mix for travel intermediaries
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Thank youfor your attention!!Questions?