A distribution channel is a network that connects the production of goods to their consumption by the final customer. .pptx

A distribution channel is a network that connects the production of goods to their consumption by the final customer.

1. Distribution Channel and Itinerary

2. Channel Distribution A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer, and an "indirect" channel allowing the consumer to buy the good from a wholesaler or retailer.

3. Distribution Strategies The three most common distribution strategies are discussed below Intensive Distribution: Used commonly to distribute low priced products or impulse purchases. For example snacks such as chocolates, soft drinks and crisps Exclusive distribution : Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers.

4. Selective Distribution : A small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread. If a manufacturer decides to adopt an exclusive or selective distribution strategy they should select reputable intermediaries, experienced in distributing similar products and an intermediary known to the target audience.

5. One-Level (Direct) Distribution Channels Simplest form of distribution, no intermediary between supplier and customer Most tourism suppliers utilize one-level distribution channels Purchase directly from the supplier World Wide Web is increasing the direct availability of information and purchase Airlines encouraging the use of the Web and ticketless travel

6. Advantages Simplicity Additional Sales Opportunity Flexibility Greater Profitability to Suppliers Personal Control over the Sale

7. Two-Level Distribution Channels Intermediary between tourism supplier and tourist Most common form of tourism supplier Travel agencies are the department stores of the travel industry Improving service delivery through cooperative systems Global distribution system (GDS) Computer reservation system (CRS)

8. Improving service delivery through cooperative systems Agencies big and small use global distribution systems (GDSs) Via GDSs agents have on-line information about schedules, availability, and fares, and allow booking of some reservations and printing tickets Two airline GDSs; Sabre and TravelPort These GDSs are also used as databases/reservation systems for many other tourism services such as hotels and rental cars Two important cooperative systems for airline ticketing Airlines Reporting Corporation (ARC) International Airline Travel Agency Network (IATAN)

9. Advantages Professional Assistance Multiple Options Free or Low-Cost Assistance Cumulative Group Power Single-Charge Billing Cost Less???

10. Three-Level Distribution Channels Add another level of intermediary such as tour operators to low-level channel Some travel agencies have entered tour packaging business Tours A package of two or more tourism services priced together Four primary forms of tours Independent Foreign/domestic independent Hosted Escorted

11. Three-Level Distribution Channels Tour Operators Purchase tourism services in bulk and then mark up the price and resell in packaged form Plan , prepare, market and often operate vacation tours Also termed tour packager or tour wholesaler Many financial risks in the tour packaging business Receptive service operator is local company that handles group’s needs while in its location

12. Three-Level Distribution Channels Consolidators and Travel Clubs Consolidators buy excess airline capacity and resell at discounted prices Travel clubs perform similar function for their members plus offer discounts on other tourism services Meeting Planners Professionals employed by corporations, associations, etc. to organize all the details entailed in meetings Meeting planner must balance meeting costs with meeting attendee desires

13. Itinerary Itinerary is the step by step representation of the entire tour program; clearly indicating the program schedule along with other details like sector, sightseeing and transport etc. to the guests. It must contain the following information: What is the title of the program? Who are the tourist? Where they are going and staying? When they are arriving and departing? How many and how are they going there are already incorporated in the 4 WH questions

14. Factors to be considered while planning an Itinerary Where to go- Destination/Cities to be Included in the itinerary When to go- Period of travel, total tour duration, Minimum time for visiting each city. Why to go- Purpose of Travel-leisure, business, relaxation or VFR( Visiting friends and relative). How to go-Made of main/Inter-City Travel With whom to go- No. of PAXs- FIT/GIT

15. Guidelines for Itinerary Planning The movement of the itinerary The interest of the client Attention to details Types of travel experience required

16. Tour Package “A total tourism product consisting of transportation from market area to the destination, accommodation at destination and recreational activities performed by the tourists”. Packages are largely developed by travel intermediaries such as tour wholesalers and operators, incentive travel planners and convention/meeting planners. Moreover, packages are also developed by primary service providers like hotels, airlines and coach and car rental companies

17. Example of Package Tour Name of the package tour : Thailand Surprise No . of days: 05 N / 06 D Price of tour : 26,500/- Destinations to be covered : Bangkok, Pattaya Tours includes : Air-fare, accommodation, s/s , daily breakfast, buffet Indian dinners, transportation, travel insurance ,tour manager service.

18. Components of Tour Package

19. TRANSPORTATION: It includes return airfare/train fare etc. ACCOMODATION : It includes stay in hotels, motels, resorts on twin sharing basis etc. TRANSFERS : It includes pick- up from airport to hotel and vice versa. SIGHTSEEINGS : It includes local sightseeing's in car / coach. MEALS : It includes Buffet Indian Breakfast, European Plane (EP), Continental Plane (CP), Modified American Plane (MAP), American Plane (AP). TRAVEL INSURANCE / MEDICAL INSURANCE : It is an important service in these days. TOUR MANAGER SERVICE : It includes services of a tour manager or an escort (Tour Guide). In this the tour escort or tour manager travel with the tourist.

20. Classification of Package Tour Regular Tour Packages : Assembled based on the need or interest of a target market. Ad Hoc Tour Packages : Tour package that are tailor - made to the requirements and specification of a particular traveler or group of travels.

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