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The New Role of Intermediaries in Travel and Tourism Distribution Channels

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Berendien Lubbe

This article gives an overview of the changes and developments in the travel industry and the way travel intermediaries like travel agents are responding to them. These changes include the deregulation of airlines and the advent of global distribution systems, the pressure from airlines for lower distribution costs, rapid and fundamental changes in technology and consumer preferences. The responses by travel agents include rapid integration and consolidation within the industry, the use of technology to streamline operations and expand market reach, and the review of traditional revenue models to make way for new approaches to revenue generation. In conclusion, some future scenarios for both leisure and corporate travel distribution are outlined.

Travel & Tourism Analyst

David Wardell

Experts routinely describe new travel agent technology in the context of electronic travel commerce. There are few other technology topics with similar market potential or emotional appeal—to the extent that new business start-ups, product announcements, and seminar programs are dominated by predictions of the potential of e-commerce. This is usually described as an exceedingly simple business proposition: either the demise of travel agents is imminent as vendors adopt new strategies to bypass them or else vast new frontiers are opening to anyone with the most modest travel credentials provided only that they are able to operate a World Wide Web site on The Internet. The idea that reality might be less certain and that traditional and non-traditional channels may both flourish in the future appears to have been lost. The true effects of electronic commerce are complex and intertwined with emerging business strategies affecting more of society than just travel. The opportunities opened to all segments of the industry, vendors and agents alike are substantial. So is the task of sorting fact from fancy. The businesses able to prosper through electronic commerce in coming years will those able to find sustainable strategies and develop business models that deliver what their customers truly want to buy. Unfortunately, there is often little relationship between sound business practices and the “Internet Hysteria” that has swept the travel industry for several years. This report discusses electronic selling as contrasted with traditional travel sales and describes what the travel industry may realistically expect from electronic commerce. It describes the overall state of the electronic travel sales scene in the U.S., predicts what characteristics successful competitors will likely possess over time, and attempts to put the current euphoria in proper context.

International Journal of Contemporary Hospitality Management

Journal of Travel & Tourism Marketing

International Journal of Contemporary Hospitality Management, Vol. 27 Iss 3 pp. 431 - 452

Rosanna Leung , Rob Law

Purpose – The purpose of this paper is to reexamine several issues about disintermediation from the perspectives of tourism product/service suppliers (hotels) and traditional intermediaries (travel agencies), considering the move of the current distribution landscape toward disintermediation. Internet and mobile technologies offer various tools for consumers to search and purchase products/services from suppliers directly. Consequently, the necessity and role of traditional intermediaries in the industry become questionable. Design/methodology/approach – In all, six focus group interviews were conducted to collect primary data from ten managers of three traditional travel agencies and 11 managers from three business hotels in Hong Kong, which is a major travel destination in Asia with many world-class hotels and tourism facilities. Findings – Despite their different business backgrounds, the interviewees agreed on the increasing importance of Internet technology in the distribution of tourism products. The interviewees also posited that traditional travel agencies are still needed to serve certain customer groups, albeit their role may have little importance. Practical implications – Practitioners should adapt to technologically induced changes to remain competitive in the e-business era. Originality/value – This paper provides several original contributions. First, this paper supplements the extant literature by revealing how modern practitioners perceive disintermediation in the tourism and hospitality industry. Second, this paper is the first to investigate the is intermediation issue from the perspectives of tourism product/service suppliers and intermediaries. Finally, this paper provides a reference for industry practitioners to establish adequate strategies that take advantage of Internet technology.

Magdalena Kachniewska

The purpose of the study is to analyse the changing role of tourism intermediaries in the distribution chain. Globalisation and the development of ICTs have undoubtedly changed both business practices and strategies as well as industry structures. They are also creating new rules governing competition within the tourism market. However, the idea of disintermediation to which e-commerce specialists often refer does not necessarily mean distruction of travel intermediaries. By examining their traditional functions one can demonstrate that current Internet trends go beyond disintermediation in tourism. Emerging new Internet players are being joined by entirely new types of intermediaries, leading to the radical restructuring of tourism value nets.

The study aims to investigate the characteristics of the relationships between travel agencies (TA) and tour operators (TO). Through an empirical analysis, we highlight the weight, the number, and the duration of the relationships that are created in the Italian tourism intermediation system. An empirical research was conducted on a sample of Italian travel agencies (202, covering all of the regions in Italy). Results show that, although the products supplied by TOs are fundamental to the realization of TA turnover, in most cases channel relationships are of short duration and highly variable. This could mean that vertical channel relationships do not sufficiently exploit areas of potential cooperation.

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Distribution Channel in Tourism

• Living reference work entry
• First Online: 10 March 2024
• Cite this living reference work entry

• Marion Joppe 3  

A tourism distribution channel is a network of intermediaries through which a traveler purchases a good or service. This system is a complex, global network of independent businesses that link people with tourism providers. It is especially important for international travel. Different combinations of intermediaries result in a wide range of channel configurations that vary considerably by destination. The traditional channels are retail travel agents, wholesalers, tour operators, and booking agents.

The history of the commercial travel market can be divided into three distinct stages. One, the development of tourism market structures and the appearance of travel agencies between the middle of the nineteenth century and World War II. Two, the appearance of tour operators in the 1950s made mass tourism in the developed world possible by adopting an industrial model dependent on the intermediaries and applying logistics, sophisticated organization, and information technology...

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Buhalis, D., and R. Law. 2008. Progress in information technology & tourism management: 20 years on and 10 years after the internet – The state of eTourism research. Tourism Management 29 (4): 609–623.

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Colombo, E., and R. Baggio. 2017. Tourism distribution channels. In Knowledge transfer to and within tourism: Academic, industry and government bridges , ed. N. Scott, M. Van Niekerk, and M. De Martino, 289–301. Bingley, UK: Emerald Publishing Limited.

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Kim, J., D.C. Bojanic, and R.B. Warnick. 2009. Price bundling and travel product pricing practices used by online channels of distribution. Journal of Travel Research 47 (4): 403–412.

Kracht, J., and Y. Wang. 2010. Examining the tourism distribution channels: Evolution and transformation. International Journal of Contemporary Hospitality Management 22 (5): 736–757.

Scaglione, M., R. Schegg, and J. Tranichet. 2013. Analysing the penetration of Web 2.0 in different tourism sectors from 2008 to 2012. In Information and communication technologies in tourism , ed. L. Cantoni and Z. Xiang, 280–289. Vienna: Springer.

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University of Guelph, Guelph, Canada

Marion Joppe

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Correspondence to Marion Joppe .

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School of Hospitality Leadership, University of Wisconsin-Stout, Menomonie, WI, USA

Jafar Jafari

School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, China

Honggen Xiao

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Department of Tourism, Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia

Nevenka Cavlek

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Joppe, M. (2023). Distribution Channel in Tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_865-1

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DOI : https://doi.org/10.1007/978-3-319-01669-6_865-1

Received : 27 January 2022

Accepted : 21 February 2023

Published : 10 March 2024

Publisher Name : Springer, Cham

Print ISBN : 978-3-319-01669-6

Online ISBN : 978-3-319-01669-6

eBook Packages : Springer Reference Business and Management Reference Module Humanities and Social Sciences Reference Module Business, Economics and Social Sciences

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Tourism distribution channels : practices, issues and transformations

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