Dinesh Patairya is a seasoned traveler. He has been writing on travel and tourism for years for several online and offline publications.
Marketing channel members provide information, promotion, selling, financing and risk taking. Intermediates increase the geographical and market coverage of tour operators. Here is a bit of information various types of intermediaries in tourism industry.
Tour Wholesalers: They plan and market tour packages. Services they provide are combination of the services of various service providers such as carriers, hotels, catering, guides, and transportation.
Tour Operators: They offer tour packages prepared by wholesellers. Planning of a tour package begins more than a year before the start of a tour. Thorough market research is done before finalising a package. They hold negotiations with service providers. Promotion and distribution strategy is also finalised.
Travel Agents: Travel industry all over the world is dominated by travel agents. They make for 95% of international tour packages and 80% of international hotel bookings. There income comes from the commissions they receive from airlines and hotels. Travel agents are implants and independents. Implant agents have their office in the premises of corporate clients. Independent travel agents have offices in the market and operate independently.
Corporate Travel Managers: Big corporations have in-house travel departments. They reduce business cost and increase purchasing power by bulk buying. With the advent of CRS-Computer Reservation System and Interactive Computer Software, corporate travel department has become more popular concept.
Incentive Travel Planner: Travel operators offer concessions to potential travelers to have their tour confirmed. Special agents called Incentive Travel Planners take care of these type of travelers.
Consortium: Organisations make consortiums to offer services. For instance Phuket in Thailand has an organisation with several hotels as members. Booking can be done in any of these hotels.
Franchising: This is a hybrid form of entrepreneurship. An established brand grants an individual or a firm the right to conduct business operations using its name. The rights holder is required to follow a set pattern of operation over a period of time. The arrangement is good for both the sides. The franchisee gets established brands to sell and assistance in management. Franchisers receive royalty on the gross sales.
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