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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.
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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
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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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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
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Published : 10 March 2024
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Online ISBN : 978-3-319-01669-6
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Tourism distribution channels : practices, issues and transformations
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6.1 Introduction. Distribution channels enable customers to buy or gain access to travel products. Therefore, they may refer to all aspects of the link between the businesses and their customers ...
Central Florida, Orlando, USAA tourism distribution channel is a network of intermediaries that facilitates the sales and deliv-ery of products and services specifically related to tourism from suppliers to consumers (Buhalis and Laws 2001; Krach. and Wang 2010; Longhi 2009). Tourism distribution channels can be distinguished from the ones of ...
The tourism industry has seen a number of interesting trends and developments for many airlines and their intermediaries. It may appear that the travel "distribution" is becoming like "e-commerce," with campaigns, offers, and channel marketing. For many years, the GDSs had a dominant position in the travel industry.
1 TOURISM DISTRIBUTION CHANNELS: THE VISITORS ' PERSPECTIVE Douglas G. Pearce and Christian Schott Victoria University of Wellington, New Zealand Abstract This paper extends research on tourism distribution channels, a topic dominated by studies of providers and intermediaries, by addressing the use of multiple channels from the visitors ...
Abstract and Figures. This article extends research on tourism distribution channels, a topic dominated by studies of providers and in- termediaries, by addressing the use of multiple channels ...
Distribution Channels. Description. PDF. This report analyzes the following issues: - The distribution System in International Tourism; - Travel Distribution Intermediaries: Functions and Importance; - Promotion and Sales Techniques; - National Tourist Administrations and the Travel Trade; It also includes, in the end, the Conclusions and ...
Abstract. Purpose - The purpose of this paper is to examine the evolution and transformation of tourism distribution channels, focusing on the role the internet has played in such a process. It ...
9.2 Distribution Channels in Tourism. Distribution is regarded as the place of sale in the traditional marketing mix, along with product, price, and promotion (Borden, 1964). It describes the location and availabil-ity of the product-offering and the method by which it is distributed to consumers.
This article extends research on tourism distribution channels, a topic dominated by studies of providers and intermediaries, by addressing the use of multiple channels from the visitors' perspective. The article reports the results of intercept surveys of international and domestic independent visitors, and their use of a range of distribution channels to make travel, accommodation, and ...
Elaborating a channel design process constitutes the last phase in a major 5-year project aimed at developing a more systema-tic understanding of the diverse distribution channels for New Zealand tourism and examining ways of increasing their effective-ness (Pearce, 2003). The final objective of the project was to develop a set of best practice ...
the future structure of tourism distribution channels in Crete. The biggest change is the disappearance of incoming agents and the appearance of Extranet-XML which is considered one of the biggest changes in the future Cretan tourism distribution chan. market. according to interviewees (CM4, RCM, HGM2, SM1, SM2).
This article extends research on tourism distribution channels, a topic dominated by studies of providers and intermediaries, by addressing the use of multiple channels from the visitors' perspective. The article reports the results of intercept surveys of international and domestic independent visitors, and their use of a range of ...
Structure of Tourism Distribution Channels in the Future Supplier 5 Discussion and Conclusion This study has shown that within the last 4 years the biggest change within the tourism distribution channels were that social media connects with the online travel agencies and the suppliers' website (Lee et al., 2013).
The tourism distribution channels network is extremely complex. In particular, the emergence of technologies; the development of online social networks, online review sites as well as mobile location-based services has added additional channels of distribution.
The New Role of Intermediaries in Travel and Tourism Distribution Channels The IPTS Report - Contents - Archive - Contact Other languages - Français - Deutsch - Español Despina Kanellou, SPRU Issue: The accepted wisdom in the Travel and Tourism (T&T) industry -with very few exceptions- has so far placed the emphasis on disintermediation ...
The key themes are Single-channel, Dual-channel, Multi-channel, Cross-channel, and Omni-channel. Finally, this study calls for future research in the field of tourism distribution channels ...
Tourism distribution channels : practices, issues and transformations. Dimitrios Buhalis, E. Laws. Published 2001. Geography, Business. Part 1: Tourism distribution: theory, practice and issues Part 2: Tourism distribution structures Part 3: Destination and regional approaches to tourism Part 4: Transformation in tourism distribution. No Paper ...
2 Distribution Channels in Tourism. Distribution is regarded as the place of sale in the traditional marketing mix, along with product, price, and promotion (Borden, 1964). It describes the location and availability of the product-offering and the method by which it is distributed to consumers.
Tourism Distribution Channels Abstract The distribution channels link the customers with the businesses. For many years, the tourism businesses may have distributed their products and services through intermediaries. However, the latest advances in technology have brought significant changes in this regard. More individuals and corporate ...
A tourism distribution channel is a network of intermediaries that facilitates the sales and delivery of products and services specifically related to tourism from suppliers to consumers (Buhalis and Laws 2001; Kracht and Wang 2010; Longhi 2009).Tourism distribution channels can be distinguished from the ones of tangible goods in that goods are conveyed to consumers whereas tourists, in most ...
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 ...
Tourism distribution channels : practices, issues and transformations. Publication date 2001 Topics Tourism -- Management, Marketing channels Publisher London ; New York : Continuum ... Pdf_module_version 0.0.23 Ppi 360 Rcs_key 26737 Republisher_date 20240123093957 Republisher_operator [email protected] ...
Distribution Channels. Published: 1977 Pages: 71. eISBN: 978-92-844-1277-8. Abstract: This report analyzes the following issues: - The distribution System in International Tourism; - Travel Distribution Intermediaries: Functions and Importance; - Promotion and Sales Techniques; - National Tourist Administrations and the Travel Trade; It also ...