Learning Objectives: The Distribution Mix and the Travel Trade Define the terms distribution mix and travel trade. Explain why the distribution mixes in the hospitality and travel industry are different from those in other industries. List the major travel trade intermediaries. Explain the roles played by each of the major travel trade intermediaries. Identify the major online travel services and the customer benefits in using them. List the steps involved in marketing to the travel trade.
The Distribution Mix and the Travel Trade: Definitions Distribution mix: the combination of direct and indirect distribution channels that a hospitality and travel organization uses to make customers aware of, to reserve, and to deliver its services. Travel trade: a term commonly used in the hospitality and travel industry to describe all intermediaries.
Distribution Mixes in Hospitality and Travel are Different Services are intangible. There is no physical distribution system. There are a variety of unique intermediaries in the hospitality and travel industry (e.g., travel agents and tour operators).
The Distribution Mix Two main components: Direct distribution: the organization assumes total responsibility for promoting, reserving, and providing services to customers. Indirect distribution: part of the responsibility for promoting, reserving, and providing services to customers is given to one or more other hospitality and travel organization.
The Major Travel Trade Intermediaries Retail travel agents. Tour wholesalers and operators. Corporate travel managers and agencies. Incentive travel planners. Convention/meeting planners.
Roles Played by Travel Trade Intermediaries Roles of retail travel agents Expanding the distribution network for suppliers, carriers, and other intermediaries. Retailing the services of suppliers, carriers, and other intermediaries at locations convenient for travelers (primary). Providing specialized, knowledgeable advice to travelers on destinations, prices, facilities, schedules, and services (primary).
Roles Played by Travel Trade Intermediaries Role of tour wholesalers and operators Expanding the distribution network for suppliers, carriers, and other intermediaries. Assembling vacation packages by bringing together an array of destinations and the services of suppliers and carriers at all- inclusive prices (primary). Operating and guiding group tours (primary for tour operators).
Roles Played by Travel Trade Intermediaries Corporate travel managers and agencies Expanding the distribution network for suppliers, carriers, and other intermediaries at locations convenient for travelers. Coordinating corporate travel arrangements to maximize the efficiency of corporations’ travel expenditures (primary).
Roles Played by Travel Trade Intermediaries Incentive travel planners Expanding the distribution network for suppliers, carriers, and other intermediaries at locations convenient for travelers. Tailor-making incentive travel trips for corporations and others (primary).
Roles Played by Travel Trade Intermediaries Convention/meeting planners Expanding the distribution network for suppliers, carriers, and other intermediaries at locations convenient for travelers. Organizing and coordinating conventions, conferences, and meetings for associations, corporations, and other organizations (primary).
The Major Online Travel Services AOL Travel Channel Expedia Internet Travel Network Travelocity Yahoo! Travel Priceline
Customer Benefits from Using Online Travel Services Ability to self-book online Assistance in planning travel trips Availability of online pricing comparisons for hospitality and travel services Convenience of accessing travel information at home or work Immediate confirmation of travel bookings Instant access to travel information Potential of securing lower prices on hospitality and travel services
Steps Involved in Marketing to the Travel Trade Suppliers, carriers, and destination areas must treat travel trade intermediaries as a separate target market or markets. Steps in travel trade marketing: Research and select trade segments. Decide on positioning approach and marketing objectives. Establish a promotional mix for travel trade intermediaries.
Promotional Mix for Travel Trade Intermediaries A separate promotional mix must be developed for the travel trade consisting of: Trade advertising. Directories and computerized data bases. Trade promotions. Personal and telephone selling. Merchandising and brochures. Public relations and publicity. Cooperative marketing (partnerships).