Escolar Documentos
Profissional Documentos
Cultura Documentos
PROGRAM:
MTMP
COURSE:
LECTURER:
DR SHOGO.MLOZI
NATURE OF WORK:
GROUP ASSIGNMENT
NAME OF STUDENTS:
MALIKI .O.MOHAMED
PG 201504650
PG201504458
TOPIC:
TOURISM DISTRIBUTION
Table of Contents
1.
Introduction................................................................................1
2.
3.
4.
5.
6.
7.
Conclusion.................................................................................. 7
8.
References..................................................................................8
1. Introduction
Meaning and definition
Distribution is the process of delivering the products manufactured or service provided by a
firm to the end user. Various intermediaries are involved in this process. This chain of
intermediaries which helps in transferring the product from one intermediary to the next before it
reaches the end user is called the Distribution Chain or Distribution Channel. Each intermediary
has a specific role and need which the marketer caters to.
Tourism distribution
Channels of distribution are the most powerful element among marketing mix elements. Tourism
distribution channels are similar to those of other basic industries such as agriculture or
manufacturing products flow to the ultimate consumer through wholesalers, distributors, and
middlemen. While there are similarities with other industries, the tourism distribution system is
unique. Tourism produces mainly services that are intangible. There is no physical product that
can be held in inventory to flow from one sales intermediary to another. Instead, the product is,
for example, a hotel room that is available on a certain day, which is very temporal. If the room
is not sold, that revenue is lost forever.
Generally several scholars attempt to define the tourism distribution channel concept.
A distribution channel is any organized and serviced system, paid for out of marketing budgets
and created or utilized to provide convenient points of sale and/or access to consumers, away
from the location of production and consumption (Middleton, 1994a: 202).
McIntosh defines tourism distribution channels, as an operating structure, system or linkages
of various combinations of travel organization, through which a producer of travel products
describes and confirms travel arrangements to the buyer (Mill and Morrison, 1985).
The World Tourism Organization (WTO, 1975) suggests that a distribution channel can be
described as a given combination of intermediaries who co-operate in the sale of a product. It
follows that a distribution system can be and in most instances is composed of more than one
distribution channel, each of which operates parallel to and in competition with other channels.
differences make it hard for an outsider to penetrate the market. For example a hotel in Mauritius
shall hire a hotel representative in India than to send sales manager to India.
5. Selecting an Appropriate distribution channels Channel
The following the factors to be considered before choosing a suitable channel of distribution
Market considerations, the nature and type of customers and size of market are important
considerations in the choice of a channel of distribution. For example, if the market size is large,
there may be long channels, whereas in a small market direct selling may be profitable.
Company considerations, the nature, size and objectives of the business firm also play an
important role in the selection of distribution channel. It includes financial resources, market
standing, volume of production, desire for control of channel, services provided by producers.
Middlemen considerations, the cost and efficiency of distribution depend largely on the nature
and type of middlemen. It includes characteristics of middlemen such as availability, attitudes,
services, sales potential, costs etc. For example, if the terms and conditions of engaging
wholesalers are unfavorable, a producer may decide to channelize his products through retailers
6. Benefits and disadvantages of distribution channels
The advantages for tourism and hospitality organizations using intermediaries include:
More effective demand management for perishable products
Convenient global/local access points for customers away from the hospitality location
The provision of relevant information and guidance to potential customers by knowledgeable
travel experts
The bundling of hospitality products into combined travel packages
An advance reservation and payments system
The opportunity to work with specialist intermediaries who understand the dynamics of their
own markets.
The disadvantages for tourism and hospitality organizations using intermediaries include:
7. Conclusion
Finally tourism distribution decisions are crucial for tourism enterprises, as they influence their
entire marketing mix. Suitable intermediaries should be utilized by suppliers, as they influence
both branding and image of tourism products as well as speed up the maximization of profits for
the respective organizations. A good distribution system is essential to overcome challenges of
perishability and Intangibility and reach the target customer and also it shall help the customer
for making choice of the hospitality services and thus having a satisfying experience. With the
growth of internet, new distribution channels have emerged which are changing the rules of
distribution.
8. References
David Bowie and Francis Buttle (2009). An introduction Hospitality Marketing, Elsevier
Butterworth-Heinemann. Linacre House, Jordan Hill, Oxford OX2 8DP
Charles R. Goeldner J. R. Brent Ritchie 2009 Tourism: Principles, Practices, Philosophies edition
7th Published simultaneously in Canada.
Middleton, V. (1994) marketing in travel and tourism, 2nd edition Butterworth-Heinemann,
London.
Middleton, V. and Jackie Clarke (1998) marketing in travel and tourism, 3th edition ButterworthHeinemann, London.
Mill, P., and Morrison, A., 1985.The tourism system: an introductory text, Prentice Hall
International Editions, New Jersey.
Matthew A. Gana (2008) Principles of Marketing, National Open University of Nigeria
WTO, 1975, Distribution channels, World Tourism Organization, Madrid