Lesson 26

Channels of distribution in tourism Travel agents Job description of the travel agent How do travel agents make $$$? Types of tours Other roles in the operating sector Overlapping roles

=The ways in which a product/service can reach and be purchased by the client/customer

Direct channels of distribution When a product/service is sold directly to the client

E.g. A phone call to an airline

Indirect channels of distribution When the client goes through an intermediary to

purchase the product or service E.g. A client using the Internet to book a flight, a client

visiting a travel agent to buy a tour package

The main link in the travel distribution system

Acts as the consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships

Ideally are people who are well-traveled professionals, up-to-date on schedules, accommodations, entertainment, and costs

The essence of their work is service(Walker and Walker 2011)

Preparing individual, preplanned itineraries, and selling prepared package tours

Arranging for accommodations, meals, car rentals, sightseeing tours, transfers of passengers and luggage, and entrance to special attractions

Handling and advising on the many details involved in modern-day travel

Using professional know-how and experience to provide information on various things

Arranging reservations for special interest activities

(Walker and Walker 2011)

They get a commission based on what they sell Traditionally, commissions were the main source of

income However, this changed a few years ago, and

commissions from hotels and airlines have now been greatly reduced or canceled completely

Commissions by rail, bus, car rentals, cruises, and package tours remain about the same (10-15%)

Causes a need for travel agents to seek new, creative ways of making $$$

(Walker and Walker 2011)

Special interest tours Package tours that are designed to fit the requirements

of a particular group of travelers Escorted tours

All inclusive tours with an experienced tour director Foreign independent tours (FIT) and domestic

independent tours (DIT) More flexible, no tour guide, convenient and high-

quality because it is bought in large volumes Group inclusive tours (GIT)

Composed of 15 or more people, helps to save costs

(Walker and Walker 2011)

Consolidators Buy air tickets in large bulks at a discounted price Sell to travel agents and/or directly to the public

Tour wholesalers Negotiate directly with suppliers Package tours for a country or an area, and then

sell them to retail travel agents Tour operators

Bring together all the elements of a trip in one package and sell to travel agents or travelers

(Walker and Walker 2011)

Nowadays, there is a great deal of overlapping between the services of travel agents and tour operators

Not to mention, the ever popular use of the Internet Reduce the need for travel services altogether Travelers are becoming fully independent However, it cannot replace the travel agent (yet)

Personalized service, the human touch

(Walker and Walker 2011)