Tourism distribution system refers to the process of selling travel products and services through various channels to reach the Target audience. It involves multiple stages, starting from the creation of a product or service to its delivery to the end customer.
The tourism industry has witnessed a significant transformation in recent years, and technology has played a crucial role in shaping the distribution system. In this article, we will discuss what tourism distribution system is and how it works.
Types of Tourism Distribution System
There are several types of tourism distribution systems, which are as follows:
1. Direct Distribution System
In this type of distribution system, travel products and services are sold directly to customers without any intermediaries. It involves a one-to-one interaction between the seller and the buyer. Examples include hotel websites, airlines’ websites, and car rental companies.
2. Indirect Distribution System
In this type of distribution system, intermediaries such as travel agents, tour operators, and online travel agencies (OTAs) sell travel products and services on behalf of suppliers such as hotels, airlines, car rental companies, etc.
Components of Tourism Distribution System
The components of tourism distribution system include:
1. Travel Products and Services
Travel products and services refer to the offerings provided by suppliers such as hotels, airlines, car rental companies, etc., which can be sold through various channels. Market Segments
Market segments refer to groups of customers with similar characteristics who have similar needs for travel products and services.
3. Channels
Channels refer to the means through which travel products and services are distributed to customers. Examples include online booking engines, mobile apps, tour operators’ brochures, etc.
How Tourism Distribution System Works?
The tourism distribution system works in the following way:
1. Creation of Travel Products and Services
Suppliers create travel products and services such as hotel rooms, flight tickets, car rentals, etc. Negotiation and Contracting
Suppliers negotiate with intermediaries such as travel agents, tour operators, and OTAs to sell their products and services. Product Loading
Once the negotiation is successful, suppliers load their product information onto intermediaries’ booking systems.
4. Reservation
Customers can access the product information through various channels such as online booking engines, mobile apps, or tour operators’ brochures. They can make a reservation by selecting a product and providing their details.
5. Payment Processing
Intermediaries process the payment for the reservation made by customers.
6. Confirmation
Once the payment is processed successfully, customers receive a confirmation of their reservation.
7. Delivery of Travel Products and Services
Suppliers deliver their products and services to customers according to the reservation made.
Conclusion
In conclusion, tourism distribution system plays a crucial role in the travel industry by facilitating the sale of travel products and services through various channels to reach customers. The development of technology has brought significant changes to this system by making it more convenient for customers to make reservations through multiple channels. It is essential for suppliers to choose appropriate distribution channels that suit their business needs and Target market segments to maximize their revenue potential.