Distribution strategy
In tourism industry, the distribution strategy has far reaching impact on the development of the industry. This makes it essential that the channel decisions are sound so that the beginning and end process of marketing are managed efficiently and effectively.
A basic understanding of the structure and working of the distribution system in travel industry, including the middlemen who form the part of the system, is found essential to understand the Economics of the tourism industry. The current practices insist on four types of sales distribution of tourism as a product.
One stage system: This system provides direct sales from primary suppliers of the services to consumers through its own reservation departments. E.g. airlines directly selling tickets to travellers through its reservation office.
Two- stage system: This system involves single middlemen i.e travel agent.
Three-stage system: This system involves two middlemen, retail travel agent and wholesaler or a tour operator.
Four-stage system: This system involves a retail travel agent, wholesaler and additional middlemen known as Speciality Chancellor, who is instrumental in the development of tour packages.
Read more: http://www.ukessays.co.uk/essays/business-theory/supply-chain-in-tourism-services.php#ixzz38M1Dw000