Bsc TTM_Sem-3_Tourism Marketing_Unit 9- Marketing Distribution Channels

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BTT 2MARKETING MANAGEMENT All right are reserved with CU-IDOL Tourism Marketing Course Code: BTT112 Semester: Third Unit: 9 www.cuidol.in

Tourism Marketing 33 COURSE OBJECTIVES COURSE OUTCOMES • The course aims to provide basic knowledge of different tourism products of India. • To Equip the student with the understanding of domestic destinations. • To enrich student with knowledge of diversified tourism resources and products www.cuidol.in Q 101) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL

Marketing Distribution Channel 43 UNIT OBJECTIVES UNIT INTRODUCTION • After learning this unit, the student will be able to . • Identify various distribution channels. • Recognise the working of travel agencies. www.cuidol.in Q 101) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL

Introduction to Distribution Channel 5 • A distribution channel is a path that goods and services move from a vendor to a customer, or payments for such items travel from a customer to a vendor. • It's a \"linkage of various combinations of organisations in which a manufacturer of travel goods describes, offers, or confirms travel arrangements to the customer,\" to put it another way. • A distribution channel is a network of companies or intermediaries that a product or service passes through before reaching the final customer or end user. • Wholesalers, dealers, distributors, and even the Internet are examples of distribution networks. • The downstream process includes distribution networks, which address the question, \"How do we bring our product to the consumer?\" The upstream method, also known as the supply chain, addresses the question, \"Who are our suppliers?\" www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 6 • Systems of Global Distribution • The evolution of GDSs provided tourism businesses with ever-increasing services and searching capacity. • A GDS is a company-run network that facilitates automated transactions between travel service providers (mostly airlines, hotels, and car rental companies) and travel agencies. • To provide travel-related services to end customers, travel agencies have historically relied on GDSs for services, goods, and rates. • GDSs provided valuable links to travel services, pricing, and bookings, allowing tourism goods and services from all sectors to be consolidated. • Users can normally book hotel rooms, rental cars, airline tickets, and other events and tours through modern GDSs. • In certain markets, they also have links to train and bus reservations, but these are not necessarily incorporated into the main scheme. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 7 • Websites for Online Sales For several airlines and their intermediaries, the tourism industry has seen a host of fascinating trends and innovations. • With campaigns, deals, and channel marketing, it may seem that travel \"distribution\" is becoming more like \"e-commerce.\" • The GDSs had a monopoly in the travel industry for many years. • New innovations, on the other hand, are fundamentally altering the framework of the travel industry in terms of product and service delivery. • Many airlines are distributing flights directly via their websites to escape the GDS and its high fees. In several markets, many airlines have closed their own ticket offices. • Customers are constantly engaging with them through digital media. • Passengers may use online booking engines to make their own reservations and pay for their trips using their credit or debit cards. Within 24 hours of purchasing a ticket, customers will receive an electronic ticket confirmation with a unique identifier code. • They can also sign in and print their boarding passes via the internet. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 8 • Search Engines for Travel • Many search engines are rapidly providing attractive travel-related offers. • They frequently have user-friendly websites that assist individual customers in finding the best deals. • A flight quest, for example, may include one-way, return, or multiple destinations. • In the tourism industry, there are two ways to reach customers: • Directly – in a travel agency or on the website of a travel agency. • Via an alliance with third-party distribution networks, indirectly. • Not only will having the right distribution networks for tours and trips increase the tour company's visibility, but it will also increase its credibility. As a result, it's important for a tour company to be classified in the appropriate locations. • To maximise your income as a tour company owner simply by selecting the appropriate distribution platforms for your tours and trips. That is how crucial they are. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 9 • Website of a tour operator • When was the last time you didn't begin planning a vacation on the internet? Isn't it been a long time? It is self-evident that the internet has altered traveller activity. It's never been easier to go from finding a travel inspiration to packing your bags for a new adventure. It's also very common among tourists. • Having said that, we can assure you that stunning tour images posted on your tour company's website can pique people's interest. • Sharing videos from your trip on social media accounts will also result in sales! Don't forget to share travel images and videos on the tour company's website and social media accounts. • A Must-Have for a Successful Tour Company is Google My Business. • One of the most significant indirect distribution networks for tours and trips is Google My Company. • The SEO ranking of a tour company that is classified with Google would increase. Another advantage is that your tour company will be listed on Google Maps. All pertinent information, such as opening hours or a phone number, is included. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 10 • Work with hostels and tourist information centres to increase tour and trip sales. • Visitors often ask an employee at the check-in desk for a tour recommendation after checking in at a hostel. As a result, a relationship with a local hostel will support tour and activity operators. • Tourist information centres are often visited by travellers who are not staying in a hostel. As a result, you can get in touch with your nearest tourist information centre and see if you can collaborate with them. • Flyers and brochures are usually sent by tour companies to hostels and tourist information centres. And interested travellers can contact your tour company to make a reservation. You now understand how important it is to maintain good ties with the front desk and establish perfect relationships! • Online review sites will make or break your tour company. • Is there anybody out there who hasn't heard of TripAdvisor? No, I don't believe so. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 11 • Your tour company will either make or break based on the feedback recieved. • All of the marketing strategies would fall short of reversing the negative impact of a few bad reviews. If your tour company, on the other hand, has hundreds of positive feedback, less marketing effort would be needed. • The explanation for this is that only 14% of customers trust conventional ads, while 92% trust feedback on sites like TripAdvisor. • Direct and indirect channels are the two types of channels. • A direct channel allows customers to buy directly from the producer, while an indirect channel allows customers to buy from a wholesaler or retailer. For products sold in conventional brick-and-mortar shops, indirect channels are popular. • In general, the price of a good would rise if there are more intermediaries in the distribution chain. • A direct or short channel, on the other hand, can result in lower prices for consumers since they are purchasing directly from the manufacturer. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 12 • Distribution Channels Types • While a distribution channel may seem to be infinite at times, there are three key categories, each of which includes a distributor, wholesaler, retailer, and end customer. • Since it comprises all four: manufacturer, wholesaler, retailer, and customer, the first channel is the longest. This long distribution channel is exemplified by the wine and adult beverage industry. • A winery cannot sell directly to a manufacturer in this sector due to prohibition-era rules. It works on a three-tier structure, which means the winery must sell its product first to a wholesaler, who then sells it to a retailer. The commodity is then sold to the end user by the manufacturer. • The second channel bypasses the wholesaler by selling directly to a manufacturer, who then sells the commodity to the end user. • This means there is only one intermediary in the second channel. Dell, for example, is big enough to market its goods to respected stores like Best Buy directly. • A direct-to-consumer model is the third and final channel, in which the manufacturer sells the product directly to the end consumer. A direct model is demonstrated by Amazon, which sells Kindles to its consumers on its own website. This is the shortest possible distribution channel, obviating the need for both a wholesaler and a retailer. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 13 • Selecting the Most Appropriate Distribution Channel • Since not all distribution channels are appropriate for all goods, it is important for businesses to choose the best option. The channel should be consistent with the company's overall mission and strategic direction, as well as its sales objectives. • The distribution method can provide added value to the user. Do customers want to talk with a sales representative? Would they want to touch and feel the product before buying it? Or do they want to buy it without any hassles online? Companies will use the answers to these questions to help them decide which platform to use. • Second, the business should think about how fast it needs its product(s) to meet the customer. Certain items, such as meat or fruit, are better served by a direct distribution channel, while others can benefit from an indirect distribution channel. • If a business prefers different distribution channels, such as selling goods online and through a store, the channels do not compete. Companies should plan ahead of time to ensure that one channel does not dominate the other. www.cuidol.in All right are reserved with CU-IDOL

Introduction to Distribution Channel 14 DIRECT TO END USERS SELL THROUGH A SELL THROUGH A VAR DEALER NETWORK (VALUE-ADDED RESELLER) You have a sales force You market a commodity You sell a product to a that works with Fortune to end-users in your business that resells it 100 businesses directly. region through a after bundling it with geographical network of services or other goods. You have a small dealers. Dealers can also Since it adds value to business merchandise provide service for the your product, the line as well. You offer commodity. company is known as a this line directly to Your dealers are basically Value Added Reseller end-users through your your clients, and you (VAR). website and have a solid training and A VAR can consult with marketing campaigns, support programme in an end-user to rather than through your place for them, including sales staff. marketing campaigns determine the best and materials. There are two markets products and and two distribution networks available to configurations before you. putting together a system that includes your product. www.cuidol.in All right are reserved with CU-IDOL

Summary 15 • The distribution channels refer to all aspects which link the businesses with the consumers. In the past, airlines used to hold sales offices / ticketing offices in city centers and airports. • Their distribution network also consisted of tour operators and travel agents who were entrusted with the distribution of tourism products. www.cuidol.in All right are reserved with CU-IDOL

Reference 16 • Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 www.cuidol.in All right are reserved with CU-IDOL

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