Travel Sales Distribution Systems

TRAVEL MANAGEMENT
TRAVEL SALES DISTRIBUTION
SYSTEMS
WEEK 8

, TRAVEL MANAGEMENT
• TRAVEL SALES DISTRIBUTION
SYTEMS:
– Unique to the travel industry
– Is a means of understanding the economies of
travel
– Within the system there are wide variations,
combinations and interactive relationships in
selling travel
– Supplies travel from main supplier to consumer
– 4 types of distribution systems employed
individually or simultaneously
2

, TRAVEL MANAGEMENT
Suppliers 1st stage

Travel Agent,
Carriers 2nd stage
Tour Operator Buyers
Lodging or Specialty
channel
Food services Individual
Car rental or Group
firms 3rd stage Specialty Traveller
channel, Travel
Attractions & Wholesaler or Agent
Entertainment Tour Operator
Cruise line
4th stage Wholesaler or
Resorts
Tour Operator
Etc…
Travel Specialty channel
Agent 3

, TRAVEL MANAGEMENT
• THE DISTRIBUTION SYSTEM BY STAGE:
– ONE STAGE SYSTEM: sale of travel from supplier
directly to consumer
• Expensive - as requires permanent reservations and
sales system
• Simple - as buyer and seller deal directly
• Additional sales opportunity – talk directly with
customers hence opportunity to sell added services
• Flexible – travel plans can be modified at last minute
• Greater profitability to suppliers – as earns a greater per
unit profit by client
• Personal control over sales – reduce risk of being
stranded abroad; e.g. cases of TAs not offering security
to travellers
• Management of key accounts – e.g. frequent flyer prog.
Easier to account for when company has direct access
to sales
4