Tourism Distribution Channel

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Tourism Distribution Channel
Marketing intermediaries can come in the form of
wholesalers, retailers, brokers, agents, financial intermediaries or
distributors. The manufacturers are responsible for creating the
product or developing the service before it is sent forward to the
marketing intermediary and from the marketing intermediary to the
consumer.
Marketing intermediaries are used by companies because
they keep manufacturers from assuming too much risk while
providing financing and information flow. They also eliminate the
need for the consumer to negotiate each individual product or
service exchange with the manufacturer or seller, which in turn is
cost effective for both parties. Some examples of marketing
intermediaries include large retailers such as Kmart and JCPenney
and grocery stores like Kroger.
Marketing intermediaries also offer distribution practicalities
that take care of "when" and "where" the customer will go in order
to purchase the product as well as allowing the customer to take
ownership of the product. The intermediaries help to create an
efficient and cost effective exchange process
Tourism Distribution Channel
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.
Tourism Distribution Channel
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.
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.
THE TRAVEL OPERATOR OR TOUR OPERATOR (TO)
A tour operator produces the trip, creates it. 6 months prior to the tourist
season (there are 2 seasons: Autumn/Winter from November - April and
Spring/Summer from May - October), they construct their product by
combining the transport and the stay (lodging). They freeze seats on
planes and hotel rooms: this is the principle of allotment. They calculate
the price of the trip (travel and stay included) by adding in their cut and
the price of the brochure which is then put together so that they can offer
the trip to agencies or directly through their own network. In the latter
case though, the agency within the network is somewhat obliged to
promote the referred TO which, in exchange, gives the TO a higher
commission, which is a little bit counteractive.
A hotel can be offered by several TO's. For 2 clients, you can also have 2
different prices for the same services offered: it all depends on the
contract that has been negotiated between the hotel and the TO. Some
TO's have opened their own resort hotels (or at least manage them) where
they apply their trademark; enabling them to control all elements.
THE TRAVEL AGENCY
The travel agent comes to mind when we think about going on holiday.
They don't create the trip, they distribute it: in a simple way (with a
flight) and more complicated (with a stay), beginning with travel plans
created by tour operators. Therefore the travel agency becomes a
purchasing advisor and provides the client with a general idea about the
trip when he or she walks into their office. A travel agency can specialize
in a particular destination or a specific trip type, like adventure, fishing,
rock climbing, or perhaps in a near future, space.
How do they make money? Two ways: first by taking a percentage from
their providers (hotel, travel operators, airline companies), second on
commissions billed to the client. This goes for well-established agencies
and for online agencies that are often much less expensive. Be careful
with referred tour operators: this only means that the agency takes a
higher percentage that can go up to 15% of the price of the trip (instead
of 12%).
Tourism Distribution Channel
Ancient Transportation
The first form of transport was, of course, Shanks pony (the human foot!).
However people eventually learned to use animals for transport. Donkeys
and horses were probably domesticated between 4,000 and 3,000 BC
(obviously the exact date is not known). Camels were domesticated
slightly later between 3,000 and 2,000 BC.
Roman Transportation
The Romans are famous for the network of roads they built across the
Empire. Roman legionaries built them so the Roman army could march
from one part of the empire to another quickly. Rich people traveled by
horse or on long journeys by covered wagon. Sometimes they were
carried in litters (seats between two long poles).
Transport by water was also important to the Romans. They built large
merchant ships called cortia, which could carry up to 1,000 tons of cargo.
Transportation in the Middle Ages
After the fall of Rome transport became more primitive. Roads in Europe
returned to being simple dirt tracks, which turned to mud in the Winter.
In the Middle Ages rich people sometimes traveled in covered wagons.
They must have been very uncomfortable as they did not have
suspension and roads were bumpy and rutted. Others traveled on a box
between two poles. Two horses, one in front and one behind carried it.
They were trained to walk at the same pace.
Transportation in the 16th Century
In Tudor times transport was still slow and uncomfortable. Roads were
still just dirt tracks. Men were supposed, by law, to spend a number of
days repairing the local roads but it is unlikely they did much good!
People traveled by horse. You could either ride your own or you could
hire a horse.
Transportation in the 17th Century
Transport and communications improved in the 17th century. In 1600 the
royal posts were exclusively used to carry the kings correspondence.
However in 1635, to raise money, Charles I allowed members of the
public to pay his messengers to carry letters. This was the start of the
royal mail.
From the middle of the 17th century stagecoaches ran regularly between
the major towns. However they were very expensive and they must have
been very uncomfortable without springs on rough roads. There was also
the danger of highwaymen.
Transportation in the 18th Century
Transport was greatly improved during the 18th century. Groups of rich
men formed turnpike trusts. Acts of Parliament gave them the right to
improve and maintain certain roads. Travelers had to pay tolls to use
them. The first turnpikes were created as early as 1663 but they became
far more common in the 18th century.
Transportation in the 19th Century
In the mid 19th century transport was revolutionized by railways. They
made travel much faster. (They also removed the danger of highwaymen).
The Stockton and Darlington railway opened in 1825. However the first
major railway was from Liverpool to Manchester.
Transportation in the 20th Century
Transportation greatly improved during the 20th century. Although the first
cars appeared at the end of the 19th century after the First World War they
became cheaper and more common. However in 1940 only about one in 10
families in Britain owned a car. They increased in number after World War
II. By 1959 32% of households owned a car.
Transportation in the 21st Century
The next step in transport will probably be commercial suborbital space
flight. At the moment it is still in the future and at first it will inevitably be
very expensive but it will eventually become cheap enough for ordinary
people to afford.
Tourism Distribution Channel
(a) Time Sensitive:
When the members of the channel stock less inventory or the customers
follow just in time then they tend to be time sensitive. Slower modes of
transport cost less, may not guarantee to reach on time. Hence, the
organisation must ensure that the choice of the mode guarantees the
delivery time each time.
(b) Cost:
The cost factor has already been discussed as comprising of two parts—
visible costs and hidden costs. These two need to be minimised but not
compromising on the customer service. Sometimes to balance the cost
and service multiple modes of transport might have to be used.
(c) Capability:
This depends on the type of products that need to be moved. If the
products are big then the transport must be capable of carrying them (for
example heavy machinery).
(d) Dependability:
Each time a distribution needs to be performed the mode must be
available and each time they must ensure the products reach the right
place, at the right time without any damage.
(e) Frequency:
This refers to the number of times the goods are scheduled for
movement. An oil pipeline is a dedicated mode which is present
continuously and can be used at any interval of time. To some
destinations frequency of flight is high- For example, the metros like Delhi,
Mumbai, Kolkata and Chennai. Hence this mode can be made use of. For
short distances buses can be used but many a time frequency is an issue.
Tourism Distribution Channel
Tourism Distribution Channel
As jets were integrated into the market in the late 1950s and early 1960s, the industry
experienced dramatic growth. By the mid-1960s, they were carrying roughly 100 million
passengers and by the mid-1970s, over 200 million Americans had traveled by air.[1] This steady
increase in air travel began placing serious strains on the ability of federal regulators to cope with
the increasingly complex nature of air travel.[citation needed]The onset of high inflation, low economic
growth, falling productivity, rising labor costs and higher fuel costs proved problematic to the
airlines.[2]
Although most [weasel words] industry scholars agree that the purpose behind government regulation
is to create a stable industry,[3][4] in the decades leading up to deregulation many airline market
analysts expressed concerns with the structure of the United States' passenger air transport
system. Concerns included high barriers to entry for fledgling airlines, slow government response
to existing airlines entering to compete in city-pairings, and monopolistic practices by legacy
airlines artificially inflating passenger ticket prices.[citation needed]
In order to address these growing concerns airline deregulation began in the USA in 1978. It was,
and still is, a part of a sweeping experiment to ultimately reduce ticket prices and entry controls
holding sway over new airline hopefuls. Airline deregulation had begun with initiatives by
economist Alfred E. Kahn in the Nixon administration, carried through the Ford
administration and finally, at the behest of Ted Kennedy, signed into law by President Jimmy
Carter.[citation needed]
Globally, state supported airlines are still relatively common, maintaining control over ticket
prices and route entry, but many countries have since deregulated their own domestic airline
markets. A similar but less laissez-faire approach has been taken by the European Union,
Australia, United Kingdom, Scandinavia, Ireland and select South and Central American nations.[5]
Tourism Distribution Channel
Tourism Distribution Channel
Direct Flight
When seeing the term "direct flight" on your ticket, you probably think
that will mean that your flight will take you directly to your destination
without stopping, right? Wrong. Direct flight simply means that the flight
number will not change, but in many cases your flight will indeed stop.
You may even need to change planes completely.
Nonstop Flight
This is the flight that you were looking for above. This flight will take you
exactly where you want to go, without stopping or causing you to change
planes and lose your comfortable position.
Gatehouse
You have probably heard someone’s name being called over the intercom,
requesting that if they are in the gatehouse that they go to a specific point
for whatever reason. The gatehouse is just another way of saying the
boarding area where you are waiting for your plane to arrive.
In Range
If you hear them announcing that your flight is now "in range" that
means that the plane is in the process of landing, but hasn’t touched
ground yet. This announcement is to give you a heads up to get ready to
board the plane, though how long it will take for the plane to actually
land and be ready for passengers is never an exact science.
ATC
The ATC is also known as the Air Traffic Control. They are in control of
pretty much every aspect that goes into a plane’s flight.
Knots
A knot is one nautical (or knotical) mile per hour (approx: 1.151 MPH).
Area of Weather
If you hear the pilot announce that you are coming to an area of
weather and that he has turned the fasten seatbelt sign on, this just
means that there is a thunderstorm or heavy rain ahead. He will usually
turn the plane to avoid it.
Approach
When you hear the pilot or crew talking about the approach, it means that
the plane is beginning its descent for landing.
Deplane
Deplane is just a fancy way of saying, get off of the plane and don’t forget
your belongings.
Airspace
The space over the land or sea area occupied by a certain state or country. A
country's airspace is considered part of that country's territory and therefore
subject to its authority.
Concourse
A broad, open area in the airport for the passage or assembly of people.
De-icing
Removing ice, snow, or frost, usually from aircraft and airfield pavements
during snowy weather. This ensures safety and efficiency of operations.
Gate
In air travel, a gate is the entrance to a movable passage much like a tunnel
or a bridge leading to the aircraft. This allows passengers to board the plane,
and later get off at their destination.
Ground Stop
A ground stop is a procedure in which all aircraft are not permitted to take
off or land at a particular airport. This usually takes place during severe
storms, heavy air traffic, or sometimes, nearby terrorist attacks. This is a
security measure put in effect to avoid accidents.
Jetway
A jetway is a specially designed movable walkway, much like a bridge or a
corridor leading into an aircraft. This allows passengers to board or
disembark a plane.
Kiosk
An airport kiosk is an interactive, computerized device where people can
get information or services. These are usually located throughout an airport
terminal for easy access. A kiosk may be consulted about flight status, flight
schedules or other inquiries. Some kiosks may be set up with a keyboard
and mouse, while others may provide a user-friendly touch screen.
People Mover / Moving Walkway
A people mover, moving walkway (British term) or moving sidewalk
(American term) is an automated mechanism that carries people across a
distance of several meters. It's often utilized in airports and looks like a
flat, horizontal escalator. Moving walkways are often very helpful for
passengers carrying lots of luggage.
Pushback
Pushback is the procedure for pushing an aircraft backward and away
from an airport gate, normally using vehicles called pushback tractors.
Ramp
Typically, a ramp is an inclined plane that allows transit between two
areas that have different levels. In an airport, this word refers to a
staircase with wheels, which is used to load or unload an airplane.
The word is also used in sea travel, referring to an inclined walkway
installed between the vessel and the port.
Slot
The scheduled time for take-off and arrival by an aircraft.
Tarmac
The surfacing material used for airport runways, usually consisting of
compressed stone or iron slag coated with tar. The term is short for
"tarmacadam".
"Tarmacadam" is an improvement on a road-making method called
macadamisation, developed by in Scottish road engineer, John Loudon
McAdam in the 1800s. Macadamisation basically involves layers of stone
coated with a binder or cement; Tarmacadam uses a specialized tar for a
flatter surface.
Tower
In an airport, the word "tower" usually refers to the Air Traffic Control
Tower (ATCT). This is a ground-based center that provides direction for
aircraft, whether on the runway or in the air. From the towers, Air traffic
controllers give instructions to pilots in the aircraft; these directions are
for facilitating the flow of traffic, assisting pilots with relevant information,
and for preventing accidents.
Tourism Distribution Channel
Being hospitable can be traced back to the
civilizations of Sumeria, Ancient Egypt,
Ancient Greece, Rome and Biblical Times.
Two possible explanations why people in
ancient times felt required to be
hospitable:
1. They felt that providing hospitality to
strangers were necessary to their religious
well-being and;
2. Having superstitious belief.
The Sumerians
• The recorded history of the hospitality industry begins
with the Sumerians, a group of people who inhabited an
area known as Mesopotamia, near the Persian Gulf, by
about 4000 BC.
• Much of this area, covering part of the modern state of
Iraq, was particularly fertile, allowing many of the
Sumerians to become skilled farmers and cattle breeders.
• The lodging industry developed because of
the need to provide accommodations for
travelers.
• Trading between two cultures created the
need for groups of people to travel often
great distances.
Classic Greek and Roman
• In ancient Greece, hospitality was provided by certain
elements of religion: missionaries, priests and pilgrims
formed a very large part of the traveling public.
• The accommodations were meager, providing only shelter
and the barest of sustenance.
• In the earliest times, they were operated by slaves who
belonged to the temples or holy places.
• Gradually, freemen replaced the slaves, but even
they were considered to be of low social prestige.
• At some point, innkeepers began to incorporate
food and beverage service in their operations.
• Another development was the Roman network
of roads that crisscrossed Europe and parts of
Asia and Africa. These roads provided fast and
safe routes for travelers.
Industrial Revolution
• During the height of the Industrial Revolution
in the 1700’s and early 1500’s there was a
great demand for accommodation as people
migrated to the cities to work.
• The emerging middle class could afford
accommodations when traveling away from
home.
• America’s first hotels were seaport
inns.
• An example of an American inn is
Manhattan’s Fraunces Tavern.
• With the rapid development of the railways in the
1820’s and 1830’s a different kind of hotel developed.
• In Europe, large hotels were built next to or across the
downtown railroad station.
• In the United States, hotels were constructed along the
railroad network.
• The introduction and development of the automobile
industry led to the establishment of the roadside hotel.
• With the construction of highways
and expressways the lodging industry
responded to the needs of the
motorist. Thus, the motor hotel or
motel emerged.
Hotel - An establishment that provides travelers with paid
accommodation and other guest services. Depending on size,
location, and amenities, hotels are generally rated from one-star
to five stars, but letter grading (from “A” to “F”) and other rating
schemes are also used to categorize hotels across the world.
Hostel - Ideal for budget travelers and backpackers, a hostel is an
inexpensive type of accommodation, usually with shared
bedrooms and communal facilities.
Motel - Originally designed for motorists, motels are roadside
hotels equipped with minimal amenities and ample parking areas
for motor vehicles.
Cottage - In today’s tourism sector, the term cottage is used to
describe a small vacation house, typically in a rural area.
Chalet - Chalets are wooden Alpine-style buildings commonly found
in and around mountain resorts.
Boutique Hotel - Often furnished in a themed, individual
style, boutique hotels are intimate in size and focus on providing
guests with high-quality, personalized experiences. (See also What is
a Boutique Hotel)
Mansion - Usually built for the wealthy, mansions are large, opulent
houses that generally pay homage to a historic architectural style.
Lodge - Although the word ’lodge’ has many different meanings,
one of them refers to a small rural house used by people on holiday
or occupied seasonally by sports enthusiasts (ski lodge, hunting
lodge).
Riad - A traditional Moroccan house built around a central
courtyard, often converted into an intimate hotel or guesthouse.
Resort - Although a resort is primarily known as a destination
frequented by vacationers in search of relaxation and
entertainment, the term is also used to describe a full service
lodging establishment that offers extensive guest services and
recreational facilities.
Villa - Originated in Roman times, a villa is often described as a
luxurious country residence.
Treehouse - Usually designed for recreational purposes,
a treehouse, or tree house, is a structure built or placed among the
branches of a tree.
Apartment - Also known as flat (British), an apartment is a self-
contained accommodation unit housed in a building containing a
number of such units.
.
Ice Hotel - An ice hotel is a non-permanent hotel constructed from
ice and snow in areas with sub-freezing temperatures.
Camp - A collection of tents, huts, or other temporary structures
used for travelers to lodge in.
Bed and Breakfast - A Bed and Breakfast (B&B) is an intimate,
independently run lodging establishment, where breakfast is
included in the room rate.
Inn - A small establishment offering overnight accommodation,
food, and drink to travelers.
Finca - A Spanish rural property, usually characterized by traditional
architecture and an agricultural heritage.
Penthouse - An apartment situated on the highest floor of a
building, commonly appointed with luxury amenities.
Chateau - In Bordeaux, the term chateau is synonymous with
vineyard estates, but it can also be used to describe a
French country house or castle.
Manor - An English manor is a large historic house
or mansion with land, formerly owned by nobility.
Pension - A type of guesthouse or B&B, where in addition to
lodging and breakfast, guests are also offered lunch and dinner.
Pensions are usually family-run and cost less than other
accommodation options.
Townhouse - A townhouse is a residential multi-level property that
is usually connected to a similar unit by a common sidewall.
Penthouse - An apartment situated on the highest floor of a
building, commonly appointed with luxury amenities.
Chateau - In Bordeaux, the term chateau is synonymous with
vineyard estates, but it can also be used to describe a
French country house or castle.
Townhouse - A townhouse is a residential multi-level property that
is usually connected to a similar unit by a common sidewall.
Aparthotel - A smart choice for long-term accommodation,
aparthotels or apartment hotels combine the comfort and
independence of a private apartment with the services of a hotel.
Guesthouse - A guest house or guesthouse is a private house
offering inexpensive accommodation to tourists.
Castle - A fortified building or group of buildings built across Europe
and the Middle East during the medieval period. Castle hotels offer
royal-style accommodation in sumptuous historic surroundings.
Palace - Unlike castles, palaces are not fortified, but they still are
royal residences characterized by an exceptional level of grandeur.
Some of the most spectacular palaces converted into luxurious
hotels can be found throughout Asia and Europe, especially India
and Italy.
Yacht - A type of luxury recreational boat offering every modern
convenience. They are classified as sailing yachts and motor yachts,
and are available in a vast range of sizes, styles, and functions.
Farmhouse - Although their styles vary by region, farmhouses are
houses attached to a farm, often characterized by vernacular
architecture.
A timeshare (sometimes called vacation
ownership) is a property with a particular form of
ownership or use rights. These properties are typically
resort condominium units, in which multiple parties hold
rights to use the property, and each sharer is allotted a
period of time (typically one week and almost always the
same time every year) in which they may use the
property. Units may be on a partial ownership, lease, or
"right to use" basis, in which the sharer holds no claim to
ownership of the property.
Star Rating Overview of Criteria according to Star Ratings Australia
Properties that typify luxury across all areas of operation. Guests
will enjoy an extensive range of facilities and comprehensive or
highly personalised services. Properties at this level will display
excellent design quality and attention to detail.
Properties which achieve a deluxe guest experience. A wide range
of facilities and superior design qualities are typically
complemented by service standards that reflect the varied and
discerning needs of the guest.
Properties that deliver a broad range of amenities that exceed
above-average accommodation needs. Good quality service,
design and physical attributes are typically fit for purpose to match
guest expectations.
Properties that focus on the needs of price conscious travellers.
Services and guest facilities are typically limited to keep room
rates affordable and competitive but may be available upon
request or fee-based.
Properties that offer budget facilities without compromising
cleanliness or guest security. Guests may access fee-based services
or facilities upon request.
Half-star ratings indicate modest improvements in the quality and
condition of guest facilities.
• Front-of-the-House vs. Back-of-the-
House
• Typical lodging operation can be
divided between its administrative
departments and service departments
• Administrative departments = manage the
business responsibilities such as accounting,
human resources and training, and marketing
and sales.
• Service departments = are responsible for
serving the guest directly.
Administrative Departments
• General Management (GM) – person in charge of
lodging establishment (other managers report directly
to the GM)
• Accounting and Financial Management – keeps track
of overall profits, records sales, and calculates costs
• Human Resources – hiring labor and evaluate
performance (resp. local labor laws)
• Marketing and Sales – make sure their lodging facility
suite their customers (sales, advertising)
Service Departments
• Front Office – have to give good first impression, good
people skills, manage rooms
• Housekeeping – maintaining property, responsible for keep
guest ready and rooms prepared.
• Engineering and Facility Maintenance – keep physical
building in good running order and maintain the operation’s
mechanical equipment
• Security – protecting guest, employees and property,
developing and following all emergency procedures
• Food and Beverage – one of the most demanding arrears
Tourism Distribution Channel
Tourism Distribution Channel
Hotels are classified according to the hotel size, location, target
markets, levels of service , facilities provided, number of rooms ,
ownership and affiliation etc.
1.Size - Or number of rooms
Under 200 rooms
200 to 399 rooms
400 to 700 rooms
More than 700 rooms
The above categories enable hotels of similar size to compare
operating procedures and statistical results .
2. Target Markets
Hotel targets many markets and can be classified according to the
markets they attempt to attract their guests. Common type of
markets include business, airport, suites, residential, resort ,
timeshare , casino , convention and conference hotels .
3. Levels Of service
World class service: - These are also called luxury / Five Start hotels ,
they target top business executives, entertainment celebrities ,
high- ranking political figures, and wealthy clientele as their primary
markets . They provide upscale restaurants and lounges , Valet,
concierge services and also private dining facilities .
4. Ownership and Affiliations
Independent / Single Owner Hotels :- They do not have identifiable
ownership or management affiliation with other properties.
Example for the same would be family owned and operated hotel
that is not following any corporate policies or procedures.
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Tourism Distribution Channel

  • 2. Marketing intermediaries can come in the form of wholesalers, retailers, brokers, agents, financial intermediaries or distributors. The manufacturers are responsible for creating the product or developing the service before it is sent forward to the marketing intermediary and from the marketing intermediary to the consumer. Marketing intermediaries are used by companies because they keep manufacturers from assuming too much risk while providing financing and information flow. They also eliminate the need for the consumer to negotiate each individual product or service exchange with the manufacturer or seller, which in turn is cost effective for both parties. Some examples of marketing intermediaries include large retailers such as Kmart and JCPenney and grocery stores like Kroger. Marketing intermediaries also offer distribution practicalities that take care of "when" and "where" the customer will go in order to purchase the product as well as allowing the customer to take ownership of the product. The intermediaries help to create an efficient and cost effective exchange process
  • 4. 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.
  • 6. 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. 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.
  • 7. THE TRAVEL OPERATOR OR TOUR OPERATOR (TO) A tour operator produces the trip, creates it. 6 months prior to the tourist season (there are 2 seasons: Autumn/Winter from November - April and Spring/Summer from May - October), they construct their product by combining the transport and the stay (lodging). They freeze seats on planes and hotel rooms: this is the principle of allotment. They calculate the price of the trip (travel and stay included) by adding in their cut and the price of the brochure which is then put together so that they can offer the trip to agencies or directly through their own network. In the latter case though, the agency within the network is somewhat obliged to promote the referred TO which, in exchange, gives the TO a higher commission, which is a little bit counteractive. A hotel can be offered by several TO's. For 2 clients, you can also have 2 different prices for the same services offered: it all depends on the contract that has been negotiated between the hotel and the TO. Some TO's have opened their own resort hotels (or at least manage them) where they apply their trademark; enabling them to control all elements.
  • 8. THE TRAVEL AGENCY The travel agent comes to mind when we think about going on holiday. They don't create the trip, they distribute it: in a simple way (with a flight) and more complicated (with a stay), beginning with travel plans created by tour operators. Therefore the travel agency becomes a purchasing advisor and provides the client with a general idea about the trip when he or she walks into their office. A travel agency can specialize in a particular destination or a specific trip type, like adventure, fishing, rock climbing, or perhaps in a near future, space. How do they make money? Two ways: first by taking a percentage from their providers (hotel, travel operators, airline companies), second on commissions billed to the client. This goes for well-established agencies and for online agencies that are often much less expensive. Be careful with referred tour operators: this only means that the agency takes a higher percentage that can go up to 15% of the price of the trip (instead of 12%).
  • 10. Ancient Transportation The first form of transport was, of course, Shanks pony (the human foot!). However people eventually learned to use animals for transport. Donkeys and horses were probably domesticated between 4,000 and 3,000 BC (obviously the exact date is not known). Camels were domesticated slightly later between 3,000 and 2,000 BC. Roman Transportation The Romans are famous for the network of roads they built across the Empire. Roman legionaries built them so the Roman army could march from one part of the empire to another quickly. Rich people traveled by horse or on long journeys by covered wagon. Sometimes they were carried in litters (seats between two long poles). Transport by water was also important to the Romans. They built large merchant ships called cortia, which could carry up to 1,000 tons of cargo.
  • 11. Transportation in the Middle Ages After the fall of Rome transport became more primitive. Roads in Europe returned to being simple dirt tracks, which turned to mud in the Winter. In the Middle Ages rich people sometimes traveled in covered wagons. They must have been very uncomfortable as they did not have suspension and roads were bumpy and rutted. Others traveled on a box between two poles. Two horses, one in front and one behind carried it. They were trained to walk at the same pace. Transportation in the 16th Century In Tudor times transport was still slow and uncomfortable. Roads were still just dirt tracks. Men were supposed, by law, to spend a number of days repairing the local roads but it is unlikely they did much good! People traveled by horse. You could either ride your own or you could hire a horse.
  • 12. Transportation in the 17th Century Transport and communications improved in the 17th century. In 1600 the royal posts were exclusively used to carry the kings correspondence. However in 1635, to raise money, Charles I allowed members of the public to pay his messengers to carry letters. This was the start of the royal mail. From the middle of the 17th century stagecoaches ran regularly between the major towns. However they were very expensive and they must have been very uncomfortable without springs on rough roads. There was also the danger of highwaymen. Transportation in the 18th Century Transport was greatly improved during the 18th century. Groups of rich men formed turnpike trusts. Acts of Parliament gave them the right to improve and maintain certain roads. Travelers had to pay tolls to use them. The first turnpikes were created as early as 1663 but they became far more common in the 18th century.
  • 13. Transportation in the 19th Century In the mid 19th century transport was revolutionized by railways. They made travel much faster. (They also removed the danger of highwaymen). The Stockton and Darlington railway opened in 1825. However the first major railway was from Liverpool to Manchester. Transportation in the 20th Century Transportation greatly improved during the 20th century. Although the first cars appeared at the end of the 19th century after the First World War they became cheaper and more common. However in 1940 only about one in 10 families in Britain owned a car. They increased in number after World War II. By 1959 32% of households owned a car. Transportation in the 21st Century The next step in transport will probably be commercial suborbital space flight. At the moment it is still in the future and at first it will inevitably be very expensive but it will eventually become cheap enough for ordinary people to afford.
  • 15. (a) Time Sensitive: When the members of the channel stock less inventory or the customers follow just in time then they tend to be time sensitive. Slower modes of transport cost less, may not guarantee to reach on time. Hence, the organisation must ensure that the choice of the mode guarantees the delivery time each time. (b) Cost: The cost factor has already been discussed as comprising of two parts— visible costs and hidden costs. These two need to be minimised but not compromising on the customer service. Sometimes to balance the cost and service multiple modes of transport might have to be used. (c) Capability: This depends on the type of products that need to be moved. If the products are big then the transport must be capable of carrying them (for example heavy machinery).
  • 16. (d) Dependability: Each time a distribution needs to be performed the mode must be available and each time they must ensure the products reach the right place, at the right time without any damage. (e) Frequency: This refers to the number of times the goods are scheduled for movement. An oil pipeline is a dedicated mode which is present continuously and can be used at any interval of time. To some destinations frequency of flight is high- For example, the metros like Delhi, Mumbai, Kolkata and Chennai. Hence this mode can be made use of. For short distances buses can be used but many a time frequency is an issue.
  • 19. As jets were integrated into the market in the late 1950s and early 1960s, the industry experienced dramatic growth. By the mid-1960s, they were carrying roughly 100 million passengers and by the mid-1970s, over 200 million Americans had traveled by air.[1] This steady increase in air travel began placing serious strains on the ability of federal regulators to cope with the increasingly complex nature of air travel.[citation needed]The onset of high inflation, low economic growth, falling productivity, rising labor costs and higher fuel costs proved problematic to the airlines.[2] Although most [weasel words] industry scholars agree that the purpose behind government regulation is to create a stable industry,[3][4] in the decades leading up to deregulation many airline market analysts expressed concerns with the structure of the United States' passenger air transport system. Concerns included high barriers to entry for fledgling airlines, slow government response to existing airlines entering to compete in city-pairings, and monopolistic practices by legacy airlines artificially inflating passenger ticket prices.[citation needed] In order to address these growing concerns airline deregulation began in the USA in 1978. It was, and still is, a part of a sweeping experiment to ultimately reduce ticket prices and entry controls holding sway over new airline hopefuls. Airline deregulation had begun with initiatives by economist Alfred E. Kahn in the Nixon administration, carried through the Ford administration and finally, at the behest of Ted Kennedy, signed into law by President Jimmy Carter.[citation needed] Globally, state supported airlines are still relatively common, maintaining control over ticket prices and route entry, but many countries have since deregulated their own domestic airline markets. A similar but less laissez-faire approach has been taken by the European Union, Australia, United Kingdom, Scandinavia, Ireland and select South and Central American nations.[5]
  • 22. Direct Flight When seeing the term "direct flight" on your ticket, you probably think that will mean that your flight will take you directly to your destination without stopping, right? Wrong. Direct flight simply means that the flight number will not change, but in many cases your flight will indeed stop. You may even need to change planes completely. Nonstop Flight This is the flight that you were looking for above. This flight will take you exactly where you want to go, without stopping or causing you to change planes and lose your comfortable position. Gatehouse You have probably heard someone’s name being called over the intercom, requesting that if they are in the gatehouse that they go to a specific point for whatever reason. The gatehouse is just another way of saying the boarding area where you are waiting for your plane to arrive.
  • 23. In Range If you hear them announcing that your flight is now "in range" that means that the plane is in the process of landing, but hasn’t touched ground yet. This announcement is to give you a heads up to get ready to board the plane, though how long it will take for the plane to actually land and be ready for passengers is never an exact science. ATC The ATC is also known as the Air Traffic Control. They are in control of pretty much every aspect that goes into a plane’s flight. Knots A knot is one nautical (or knotical) mile per hour (approx: 1.151 MPH). Area of Weather If you hear the pilot announce that you are coming to an area of weather and that he has turned the fasten seatbelt sign on, this just means that there is a thunderstorm or heavy rain ahead. He will usually turn the plane to avoid it.
  • 24. Approach When you hear the pilot or crew talking about the approach, it means that the plane is beginning its descent for landing. Deplane Deplane is just a fancy way of saying, get off of the plane and don’t forget your belongings. Airspace The space over the land or sea area occupied by a certain state or country. A country's airspace is considered part of that country's territory and therefore subject to its authority. Concourse A broad, open area in the airport for the passage or assembly of people. De-icing Removing ice, snow, or frost, usually from aircraft and airfield pavements during snowy weather. This ensures safety and efficiency of operations. Gate In air travel, a gate is the entrance to a movable passage much like a tunnel or a bridge leading to the aircraft. This allows passengers to board the plane, and later get off at their destination.
  • 25. Ground Stop A ground stop is a procedure in which all aircraft are not permitted to take off or land at a particular airport. This usually takes place during severe storms, heavy air traffic, or sometimes, nearby terrorist attacks. This is a security measure put in effect to avoid accidents. Jetway A jetway is a specially designed movable walkway, much like a bridge or a corridor leading into an aircraft. This allows passengers to board or disembark a plane. Kiosk An airport kiosk is an interactive, computerized device where people can get information or services. These are usually located throughout an airport terminal for easy access. A kiosk may be consulted about flight status, flight schedules or other inquiries. Some kiosks may be set up with a keyboard and mouse, while others may provide a user-friendly touch screen.
  • 26. People Mover / Moving Walkway A people mover, moving walkway (British term) or moving sidewalk (American term) is an automated mechanism that carries people across a distance of several meters. It's often utilized in airports and looks like a flat, horizontal escalator. Moving walkways are often very helpful for passengers carrying lots of luggage. Pushback Pushback is the procedure for pushing an aircraft backward and away from an airport gate, normally using vehicles called pushback tractors. Ramp Typically, a ramp is an inclined plane that allows transit between two areas that have different levels. In an airport, this word refers to a staircase with wheels, which is used to load or unload an airplane. The word is also used in sea travel, referring to an inclined walkway installed between the vessel and the port. Slot The scheduled time for take-off and arrival by an aircraft.
  • 27. Tarmac The surfacing material used for airport runways, usually consisting of compressed stone or iron slag coated with tar. The term is short for "tarmacadam". "Tarmacadam" is an improvement on a road-making method called macadamisation, developed by in Scottish road engineer, John Loudon McAdam in the 1800s. Macadamisation basically involves layers of stone coated with a binder or cement; Tarmacadam uses a specialized tar for a flatter surface. Tower In an airport, the word "tower" usually refers to the Air Traffic Control Tower (ATCT). This is a ground-based center that provides direction for aircraft, whether on the runway or in the air. From the towers, Air traffic controllers give instructions to pilots in the aircraft; these directions are for facilitating the flow of traffic, assisting pilots with relevant information, and for preventing accidents.
  • 29. Being hospitable can be traced back to the civilizations of Sumeria, Ancient Egypt, Ancient Greece, Rome and Biblical Times. Two possible explanations why people in ancient times felt required to be hospitable: 1. They felt that providing hospitality to strangers were necessary to their religious well-being and; 2. Having superstitious belief.
  • 30. The Sumerians • The recorded history of the hospitality industry begins with the Sumerians, a group of people who inhabited an area known as Mesopotamia, near the Persian Gulf, by about 4000 BC. • Much of this area, covering part of the modern state of Iraq, was particularly fertile, allowing many of the Sumerians to become skilled farmers and cattle breeders.
  • 31. • The lodging industry developed because of the need to provide accommodations for travelers. • Trading between two cultures created the need for groups of people to travel often great distances.
  • 32. Classic Greek and Roman • In ancient Greece, hospitality was provided by certain elements of religion: missionaries, priests and pilgrims formed a very large part of the traveling public. • The accommodations were meager, providing only shelter and the barest of sustenance. • In the earliest times, they were operated by slaves who belonged to the temples or holy places. • Gradually, freemen replaced the slaves, but even they were considered to be of low social prestige.
  • 33. • At some point, innkeepers began to incorporate food and beverage service in their operations. • Another development was the Roman network of roads that crisscrossed Europe and parts of Asia and Africa. These roads provided fast and safe routes for travelers.
  • 34. Industrial Revolution • During the height of the Industrial Revolution in the 1700’s and early 1500’s there was a great demand for accommodation as people migrated to the cities to work. • The emerging middle class could afford accommodations when traveling away from home.
  • 35. • America’s first hotels were seaport inns. • An example of an American inn is Manhattan’s Fraunces Tavern.
  • 36. • With the rapid development of the railways in the 1820’s and 1830’s a different kind of hotel developed. • In Europe, large hotels were built next to or across the downtown railroad station. • In the United States, hotels were constructed along the railroad network.
  • 37. • The introduction and development of the automobile industry led to the establishment of the roadside hotel. • With the construction of highways and expressways the lodging industry responded to the needs of the motorist. Thus, the motor hotel or motel emerged.
  • 38. Hotel - An establishment that provides travelers with paid accommodation and other guest services. Depending on size, location, and amenities, hotels are generally rated from one-star to five stars, but letter grading (from “A” to “F”) and other rating schemes are also used to categorize hotels across the world. Hostel - Ideal for budget travelers and backpackers, a hostel is an inexpensive type of accommodation, usually with shared bedrooms and communal facilities. Motel - Originally designed for motorists, motels are roadside hotels equipped with minimal amenities and ample parking areas for motor vehicles. Cottage - In today’s tourism sector, the term cottage is used to describe a small vacation house, typically in a rural area.
  • 39. Chalet - Chalets are wooden Alpine-style buildings commonly found in and around mountain resorts. Boutique Hotel - Often furnished in a themed, individual style, boutique hotels are intimate in size and focus on providing guests with high-quality, personalized experiences. (See also What is a Boutique Hotel) Mansion - Usually built for the wealthy, mansions are large, opulent houses that generally pay homage to a historic architectural style. Lodge - Although the word ’lodge’ has many different meanings, one of them refers to a small rural house used by people on holiday or occupied seasonally by sports enthusiasts (ski lodge, hunting lodge). Riad - A traditional Moroccan house built around a central courtyard, often converted into an intimate hotel or guesthouse.
  • 40. Resort - Although a resort is primarily known as a destination frequented by vacationers in search of relaxation and entertainment, the term is also used to describe a full service lodging establishment that offers extensive guest services and recreational facilities. Villa - Originated in Roman times, a villa is often described as a luxurious country residence. Treehouse - Usually designed for recreational purposes, a treehouse, or tree house, is a structure built or placed among the branches of a tree. Apartment - Also known as flat (British), an apartment is a self- contained accommodation unit housed in a building containing a number of such units. .
  • 41. Ice Hotel - An ice hotel is a non-permanent hotel constructed from ice and snow in areas with sub-freezing temperatures. Camp - A collection of tents, huts, or other temporary structures used for travelers to lodge in. Bed and Breakfast - A Bed and Breakfast (B&B) is an intimate, independently run lodging establishment, where breakfast is included in the room rate. Inn - A small establishment offering overnight accommodation, food, and drink to travelers. Finca - A Spanish rural property, usually characterized by traditional architecture and an agricultural heritage.
  • 42. Penthouse - An apartment situated on the highest floor of a building, commonly appointed with luxury amenities. Chateau - In Bordeaux, the term chateau is synonymous with vineyard estates, but it can also be used to describe a French country house or castle. Manor - An English manor is a large historic house or mansion with land, formerly owned by nobility. Pension - A type of guesthouse or B&B, where in addition to lodging and breakfast, guests are also offered lunch and dinner. Pensions are usually family-run and cost less than other accommodation options. Townhouse - A townhouse is a residential multi-level property that is usually connected to a similar unit by a common sidewall.
  • 43. Penthouse - An apartment situated on the highest floor of a building, commonly appointed with luxury amenities. Chateau - In Bordeaux, the term chateau is synonymous with vineyard estates, but it can also be used to describe a French country house or castle. Townhouse - A townhouse is a residential multi-level property that is usually connected to a similar unit by a common sidewall. Aparthotel - A smart choice for long-term accommodation, aparthotels or apartment hotels combine the comfort and independence of a private apartment with the services of a hotel. Guesthouse - A guest house or guesthouse is a private house offering inexpensive accommodation to tourists.
  • 44. Castle - A fortified building or group of buildings built across Europe and the Middle East during the medieval period. Castle hotels offer royal-style accommodation in sumptuous historic surroundings. Palace - Unlike castles, palaces are not fortified, but they still are royal residences characterized by an exceptional level of grandeur. Some of the most spectacular palaces converted into luxurious hotels can be found throughout Asia and Europe, especially India and Italy. Yacht - A type of luxury recreational boat offering every modern convenience. They are classified as sailing yachts and motor yachts, and are available in a vast range of sizes, styles, and functions. Farmhouse - Although their styles vary by region, farmhouses are houses attached to a farm, often characterized by vernacular architecture.
  • 45. A timeshare (sometimes called vacation ownership) is a property with a particular form of ownership or use rights. These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week and almost always the same time every year) in which they may use the property. Units may be on a partial ownership, lease, or "right to use" basis, in which the sharer holds no claim to ownership of the property.
  • 46. Star Rating Overview of Criteria according to Star Ratings Australia Properties that typify luxury across all areas of operation. Guests will enjoy an extensive range of facilities and comprehensive or highly personalised services. Properties at this level will display excellent design quality and attention to detail. Properties which achieve a deluxe guest experience. A wide range of facilities and superior design qualities are typically complemented by service standards that reflect the varied and discerning needs of the guest. Properties that deliver a broad range of amenities that exceed above-average accommodation needs. Good quality service, design and physical attributes are typically fit for purpose to match guest expectations. Properties that focus on the needs of price conscious travellers. Services and guest facilities are typically limited to keep room rates affordable and competitive but may be available upon request or fee-based. Properties that offer budget facilities without compromising cleanliness or guest security. Guests may access fee-based services or facilities upon request. Half-star ratings indicate modest improvements in the quality and condition of guest facilities.
  • 47. • Front-of-the-House vs. Back-of-the- House • Typical lodging operation can be divided between its administrative departments and service departments • Administrative departments = manage the business responsibilities such as accounting, human resources and training, and marketing and sales. • Service departments = are responsible for serving the guest directly.
  • 48. Administrative Departments • General Management (GM) – person in charge of lodging establishment (other managers report directly to the GM) • Accounting and Financial Management – keeps track of overall profits, records sales, and calculates costs • Human Resources – hiring labor and evaluate performance (resp. local labor laws) • Marketing and Sales – make sure their lodging facility suite their customers (sales, advertising)
  • 49. Service Departments • Front Office – have to give good first impression, good people skills, manage rooms • Housekeeping – maintaining property, responsible for keep guest ready and rooms prepared. • Engineering and Facility Maintenance – keep physical building in good running order and maintain the operation’s mechanical equipment • Security – protecting guest, employees and property, developing and following all emergency procedures • Food and Beverage – one of the most demanding arrears
  • 52. Hotels are classified according to the hotel size, location, target markets, levels of service , facilities provided, number of rooms , ownership and affiliation etc. 1.Size - Or number of rooms Under 200 rooms 200 to 399 rooms 400 to 700 rooms More than 700 rooms The above categories enable hotels of similar size to compare operating procedures and statistical results . 2. Target Markets Hotel targets many markets and can be classified according to the markets they attempt to attract their guests. Common type of markets include business, airport, suites, residential, resort , timeshare , casino , convention and conference hotels .
  • 53. 3. Levels Of service World class service: - These are also called luxury / Five Start hotels , they target top business executives, entertainment celebrities , high- ranking political figures, and wealthy clientele as their primary markets . They provide upscale restaurants and lounges , Valet, concierge services and also private dining facilities . 4. Ownership and Affiliations Independent / Single Owner Hotels :- They do not have identifiable ownership or management affiliation with other properties. Example for the same would be family owned and operated hotel that is not following any corporate policies or procedures.