Page 233 - Tourism The International Business

11. Travel distribution systems

retail travel agents who are being bypassed. If successful, it is likely that automatic ticketing machines will be
installed in hotels and elsewhere.

Destinations/airlines/hotels/car rental agencies/etc.

Suppliers

Wholesaler Wholesaler

Retailer Retailer Retailer

Specialty channeler

Customers

Direct Indirect

Exhibit 86: Tourism distribution systems.
Technology is available to sell travel through home computers. Mass outlets for selling travel have been utilized
in Europe with travel being sold through supermarkets. For simple transactions these direct methods of selling
travel can be expected to grow.
For the supplier, the system is simple, profitable and offers control over the sale. The system is simple in that
buyer and seller have direct communication with each other; it is profitable in that all the revenue paid by the
customer goes to the supplier; control comes from the fact that the sales representative is an employee of the
supplier.

Indirect distribution system
An indirect distribution system is one where there are one or more intermediaries between the supplier and the

customer. The most common intermediaries are discussed in the sections that follow.
Retail travel agents. These are people who sell tours for wholesalers and operators in addition to hotel rooms,
car rentals, and transportation tickets. The retailer acts as agent for the supplier and is paid on a commission basis
by the supplier for sales made.

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