tourism channels distribution

Guide to tourism distribution channels

By Rezdy — 13 Nov 2023

1. What is tourism distribution?

2. why is tourism distribution important, 3. types of tourism distribution channels, 4. choosing the right tourism distribution channels, 5. managing your tourism distribution channels, 6. why use a tourism distribution channel management platform, 7. essential tourism distribution channel manager features, 8. the future of tourism distribution, 1. what is tourism distribution.

Tourism distribution refers to the ways in which tourism products, tours, activities and services are made available to customers. Tourism distribution can be achieved through direct or indirect channels . A tourism distribution channel refers to the stakeholders and methods involved in taking a tourism product from the supplier to the consumer. Direct channels are mediums that your business has control over, or indirect channels, which involve intermediaries such as travel brokers.

2. Why is tourism distribution important?

Tourism distribution channels play a vital role in making sure your travel products are seen by the right audiences. By aligning your business with existing distribution channels, you connect with important stakeholders in the industry. Partnering with a variety of tourism distribution channels allow you to gain efficiencies from your marketing budget and the flexibility to test different systems from different organisations, to ultimately grow your tour and activity business.

3. Types of tourism distribution channels

There are several types of tourism distribution channels that cover both direct and indirect classifications. Combining distribution channels allows your offerings to be seen by a broader customer base, leading to more exposure and more uptake.

Online travel agencies

Online travel agencies (OTAs) allow you to combine all elements of tourism distribution into one place. Online travel agencies allow customers to plan, book and pay for their flights, accommodation, rental cars and activities at the same time, which can work out a lot cheaper than booking them all individually. However, some customers may be dissuaded from doing so by the risk of overbooking and subsequent cancellations. Tour companies may also find the idea of paying commission to an OTA a downside.

Wholesalers and tour operators

Tour operators allow your offering to be seen by new markets. Generally, tour operators boast a high volume of guests, which allow you to accurately forecast sales and profits. However, if the tour operator fails to bring in the desired number of customers, your company suffers alongside the operator themselves. This loss of control may be a turnoff for your business, particularly if it is a small startup.

Direct sales

Leveraging your internal communication channels is a great way to maintain control over your marketing at a low cost. It can also bring in higher profits as there are no overheads to pay an intermediary. However, this is balanced out by the need to internally invest in advertising. Your business may also find it challenging to connect with customers directly, depending on your existing reach.

Social media

Social media is a hugely popular method for advertising your business to an active, broad public. It is a cost-effective marketing tool and holds significant visual appeal. Social channels also enable the possibility of user generated content (UGC), which can itself be a valuable marketing tool. However, social media is susceptible to vicious algorithm changes and overwhelming market saturation. It is also very sensitive to trends.

Search engines

Search engines offer the ability to finely target the reach of your tourism offering. You can also control the amount you spend on advertising more accurately by using a search engine. They also offer internal tracking metrics, which can be advantageous for a startup without an accounting department. However, competition is fierce and many people use adblockers, meaning that they may miss out on seeing your offering if it is advertised through a search engine. There is also limited space for a large number of brands, meaning keyword optimization is key to spreading your brand.

Metasearch engines

Metasearch engines give your offering increased visibility to a targeted audience. Generally speaking, they are also more trusted by online users. However, metasearch engines still suffer from stiff competition, and some will charge customers booking fees which may dissuade consumers from using them.

4. Choosing the right tourism distribution channels

Making the right decision on the distribution channels in hospitality and tourism is critical. Here are a few parameters you should consider:

Target audience

Consider the target demographics of your offering. Are they a broad audience interested in a niche subject? Are they likely to be active users of social media? Is value for money an important factor? Answering these questions about your target audience will help shape the best tourism distribution channels for your brand.

Think about how much your organisation has to spend on its distribution channel in hospitality and tourism. Finances will often dictate which distribution channels will work for your organization, ruling out online travel agencies and tour operators and focusing more on internal strategies pertaining to social media and direct sales.

Finally, consider your organisation at large. What does its online presence look like? Does it have its own assets, such as social media accounts, websites and app to leverage? Does the complexity of the product or service dictate which channels are used to market it?

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5. Managing your tourism distribution channels

With so many different ways of reaching your audience, effective management of tourism distribution channels is essential. Here are eight ways you can keep your business running smoothly.

Set clear goals and objectives

Ensure your business has clear direction. For each tourism distribution channel, set long-term goals and create a list of objectives to help you get there.

Create and maintain accurate inventory

If your business relies on inventory, make sure its quantity and availability is recorded on a database so that you and your staff are able to process bookings easily. Keep this database up to date and share it with any of your distribution partners

Build relationships with your distribution partners

Your distribution partners are essential to the functioning of your business. Keep on top of any issues they may bring up, and inform them of any changes to your business or stock.

Offer competitive pricing and commissions

Considering pricing in your tourism offering is paramount. Multi-channel distribution allows you to clearly analyse what competitors are charging, and whether your pricing strategy needs any refinements. If your business is creating commissions with any of your channel partners, try to price them favourably.

Provide excellent customer service

Customer service sits alongside pricing as the lynchpins to a successful business. Be attentive to any reviews that are left, whether they be via email, online or through one of your distribution partners. If using a multi-channel distribution network, this may be more time consuming, but it is important to ensure that you engage with feedback from all channels.

Be flexible and adaptable

Running a tourism business can be difficult. Seasonality, disease outbreaks and politics are just some of the issues your business may face. It is important to keep a positive mindset in times of reduced custom, and make any changes to your business model that may encourage more traffic.

Monitor your performance

Keeping track of your performance is essential to your business’ success, both internally and through your distribution partners. Some channels will be easier to monitor than others. For example, using the Google search engine affords access to their inbuilt tracking metrics, whereas you may have to request the data from an OTA or tour operator.

Use a distribution channel management platform

The steps outlined above are essential for success in your business but they are time consuming and complicated. To streamline the process, you may wish to use a distribution channel management platform. Depending on your business’ needs, Rezdy offers a wide range of distribution management software to assist with bookings, ticketing, reselling and channel management.

6. Why use a tourism distribution channel management platform?

Using Rezdy’s booking management software such reduces the strain on your administrative staff by improving efficiency in a number of areas.

Automate repetitive tasks

Booking confirmations and tickets are essential evidence of payment for both consumers and businesses. However, creating these items can be painstaking and time consuming. Rezdy offers an all-in-one booking and ticketing system for tour and activity operators, centralizing the heart of your business and allowing customers to book online 24/7.

Improve accuracy and efficiency

Rezdy’s automated software allows your business to be more accurate and efficient. The Rezdy Channel Manager centralises your business’ distribution network, allowing you to manage all your channel partnerships in one place.

Gain actionable insights

Utilising the Rezdy Channel Manager allows you to access all your business data and reports in one place. Review, analyze, monitor and learn from the data Rezdy produces on revenue, transactions and product availability.

Centralize management

Rezdy’s Channel Manager keeps your business’ administration management in one place, simplifying your channel management and automating payments, commissions and refunds.

7. Essential Tourism Distribution Channel Manager Features

Support for all major distribution channels.

Rezdy’s Channel Manager connects your business to your selected distribution channels, including major OTAs, tour operators and regional and local resellers.

Real-time inventory updates

Your business can receive updates to its inventory in real time through the Rezdy Channel Manager, automating the amount of stock you have available to customers.

Pricing automation

Manage the costs of your business centrally through the Rezdy Channel Manager, including commissions and automated payments

Reporting and analytics

The Rezdy Channel Manager provides centralized real-time tracking data for your business across all your distribution channels.

Ease of use

Rezdy’s Channel Manager combines your bookings, distribution channels and analytics into one clean, clear interface.

How Rezdy connects tour operators to resellers

Rezdy’s Channel Manager for Suppliers provides solutions for tour operators to connect with their resellers and proactively manage their communications.

8. The Future of Tourism Distribution

Tourism distribution has a bright future, as people continue to indulge their passion for travel. Operators of tourism businesses will continue to require the use of multiple channels to advertise their offerings in the chain of tourism, travel and tourism. Rezdy will continue to develop its channel management software to ensure it remains the default platform for centralizing the management of your tourism business.

Types of travel agents & resellers that tour operators can work with

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What are the main types of tourism distribution channels?

The travel and tourism chain of distribution

Variations in the chain of distribution, what is a tourism distribution channel.

For the owners and employees of travel businesses, it’s important to have a good understanding of the distribution channels available to you. The digital revolution means there is a wide choice of online channels today. But do not forget your strategic partnerships and offline channels too. To avoid spending unnecessary time and money, you need to know which channels do the best job of getting your travel products in front of your target audience.

But before we look at the various sales and marketing avenues at your disposal, we need to focus on the chain of distribution first. In order to maximize opportunities and efficiencies, it’s essential to understand the chain of distribution and where your company is positioned within the chain.

Generally speaking, there are four key stages within the chain of distribution . These are: principals, wholesalers & aggregators, retailers, and consumers (see chart 1).

Chart 1: The Travel and Tourism Chain of Distribution

The principals are the separate components of a travel product. For example, a leisure traveler buys a three-night stay in Paris that includes flights, accommodation, entrance to the Louvre and the Eiffel Tower, with other ancillary services such as travel insurance and foreign exchange thrown in too. In this case, each of the principals could have been sold separately. Instead, they were bundled together by a travel business and sold as a mini-break promotion.

Wholesalers & aggregators

Tour operators take various components of the travel experience and create a travel product which is then traditionally sold by a travel agent.

At the wholesaler stage in the distribution chain, the tour operator is providing a business-to-business (B2B) service by selling the product to a travel agent who then sells it to the consumer (a B2C service). They have their tour operator business plan which they follow to provide the best options to other travel-related businesses.

A global distribution system (GDS) is a computer system that holds records of availability from airlines, hotels, and car hire. Retailers such as OTAs and B2C travel agents are able to directly access this inventory.

As the oldest type of distributor in the travel industry, GDS are predominantly involved in the sale of air tickets rather than accommodation.

Destination Management Companies (DMCs) or Destination Management Organizations (DMOs) often contract travel products and sell on packages and itineraries relevant to their destination to a tour operator.

A bed bank is a B2B company that buys rooms from hotel groups and other accommodation providers in bulk at discounted and fixed prices for specific dates.

Some bed banks might also sell ancillary services such as tickets to visitor attractions or car hire.

Bed banks are middlemen, or intermediaries, between hotel companies and retailers. They might sell on their discounted bulk accommodation products to airlines, other bed banks, travel agents, OTAs or tour operators (see Chart 2). Chart 2: Bed Bank Distribution Chain

Retailers and consumers

Retailers are the organizations that sell the travel products directly to the consumer. These include traditional travel agents with a physical store in the high street such as TUI, Hays, and Cooperative Travel in the UK, for example. Other travel retailers are found online and include OTAs, B2C tour operators, and travel agents that specialize in business travel. Consumers are the end-users who buy the travel products or services. The main types of consumers are business travelers, leisure tourists (either domestic or international) and people who are visiting friends or relatives.

Chart 1 identifies the four key stages in the chain of distribution, although this process can vary and be more direct or indirect. For instance, a leisure traveler booking accommodation directly from a hotel website means there is only one stage in the chain. A bed bank that sells to another bed bank, results in five stages in the chain.

The wholesaler and retailer stages may be carried out by the same company . This is known as vertical integration , which happens when two or more organizations at different stages in the supply chain merge.

It is fairly common for tour operators and travel agents to buy each other. After all, the role of tour operators in sustainable tourism is quite significant. When mergers occur at the same level in the distribution chain, this is called horizontal integration . The original brand names are often retained, so consumers may not be aware that booking.com, KAYAK, Agoda and priceline, for instance, are all owned by one company: Booking Holdings. Digitalization and corporate mergers have resulted in plenty of crossover and consolidation in the travel and tourism distribution system.

As a B2C travel agent or tour operator, distribution channels represent the various ways to sell or market your product. You need to have a multi-channel presence to maximize your sales opportunities and brand presence, and to reduce your risk. There is specialized tour operator software that can help you manage this workload more efficiently. At the same time, depending on the size of your business and the resources you have available, it could be an error to spread yourself too thinly over too many channels.

Choosing the best distribution channels for your business needs to be done with care and attention.

Generally speaking, we can divide distribution into three main categories: online channels, strategic partnerships and offline channels (see Chart 3).

Chart 3 Travel & Tourism Distribution Channels

Online channels

As a tour operator or travel agent, the overriding benefit of optimizing your own website is that you pay no commission on direct bookings and have full control over how consumers interact with your brand.

Being listed on Google My Business is essential today. Google is the default destination for most consumers to gather information of any kind. Your listing will come up in Google searches and on Google Maps and registering is free.

Online travel marketplaces like Bookmundi and Viator have large audiences. Most are free to join but take a significant amount of sales commission, so monitor performance carefully.

Select one or two and keep your profile and listings current. The same goes for review sites such as Tripadvisor and TrustPilot . Only concentrating your energies on one or two review sites is a sensible strategy.

Channel managers, such as HRS , provide a service that sources hotel accommodation for corporate clients from a wide variety of OTAs instead of the client having to go directly to each separate OTA.

Similarly, instead of having individual accounts with OTAs, many hotel companies – big and small – will use channel management technology.

Omnibees , for example, allows hoteliers to sell to end-users and intermediaries through a single platform connected to the hotel’s property management system. Such solutions can automate sales and reduce the amount of commission paid by hotels.

Strategic partnerships

Working with other travel agents or tour operators is a great way to increase your sales. Working directly with Destination Marketing Organizations (DMO) will allow travelers to book with you directly when you advertise on the DMO website.

Building a relationship with travel bloggers will help get your name out there, as will close involvement with trade bodies associations.

To attract more bookings made directly on your website , a ffiliate digital marketing services are an option .

Offline channels

It would be a mistake to overlook offline distribution channels. The worldwide web may give you global reach, but cross-selling partnerships with local businesses such as stores, restaurants, cafes and hotels can turn out to be extremely valuable distribution channels.

Visitor information centers can be useful too because many tourists do not book tours and activities until they are in the destination.

Attending trade shows and industry events can be costly, especially for small businesses, but the resulting contacts and sales leads are often invaluable.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Please note you do not have access to teaching notes, examining the tourism distribution channel: evolution and transformation.

International Journal of Contemporary Hospitality Management

ISSN : 0959-6119

Article publication date: 13 July 2010

The purpose of this paper is to examine the evolution and transformation of tourism distribution channels, focusing on the role the internet has played in such a process. It attempts to graphically illustrate, in a temporal manner, the evolving complexity of the tourism distribution systems.

Design/methodology/approach

This paper provides insights into the change of the structure of tourism distribution that has not been extensively explored. Indeed, the complexity of the tourism distribution structure has been diagrammatically depicted multiple times by previous researchers and each depiction has contributed to a fuller understanding of the body of knowledge by focusing on different aspects of that structure. This paper builds upon those valuable knowledge contributions by focusing on the evolution of the structure over time, systematically and diagrammatically revealing the progressively larger number of intermediation layers, in spite of concurrent disintermediation and reintermediation activity. This paper does not focus on every action of every participant in detail, but rather focuses on categories of intermediaries, looking at pioneering examples of each. Likewise, the comparative rates of technology adoption in different regions of the world are not investigated.

The complex network proposed in this paper indicates that the advance of information and communication technology has not reduced the number of intermediaries in the distribution channel, but rather resulted in an increasingly complex array of intermediaries. The structure of the tourism industry has taken the form of a complex global network. In the struggle to prosper in this environment, participants at various levels will continue to compete, cooperate, merge, form partnerships, and change relationships on a regular basis.

Originality/value

The extant literature has covered many aspects of intermediation, disintermediation, and reintermediation, albeit with differing terminologies. Most of these studies have adopted a static and cross‐sectional approach in examining the structure and use of tourism distribution channels. This paper examines the historical evolution and progression of tourism distribution channels which is not only important in understanding where we are now as an industry, but also where we came from and where we are heading to.

Distribution channels and markets
Communication technologies

Kracht, J. and Wang, Y. (2010), "Examining the tourism distribution channel: evolution and transformation", International Journal of Contemporary Hospitality Management , Vol. 22 No. 5, pp. 736-757. https://doi.org/10.1108/09596111011053837

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Tourism distribution channels : practices, issues and transformations

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Buhalis, Dimitrios
Laws, Eric, 1945-
London ; New York : Continuum, 2001
xviii, 378 pages : illustrations ; 25 cm
Includes bibliographical references and index.
Pt. 1. Tourism distribution: theory, practice and issues. 1. Introduction: tourism distribution channels: practices, issues and transformations / Eric Laws and Dimitrios Buhalis. 2. Tourism distribution channels: practices and processes / Dimitrios Buhalis. 3. Distribution channels for tourism: theory and issues / Dorota Ujma. 4. Distribution channel analysis for leisure travel / Eric Laws. 5. Distribution channel analysis for business travel / Rob Davidson. 6. Distribution channels: ethics and sustainability / John Swarbrooke. 7. Quality issues in tourism distribution: practices and prospects / Denis Harrington and John Power. 8. Service quality and the distribution chain for inclusive tours / Oystein Jensen -- Pt. 2. Tourism distribution structures. 9. Tourism distribution channels in Europe: a comparative study / Francesco Casarin. 10. Who owns whom in the European travel distribution industry / Marion Bywater. 11. Travel retailing: 'switch selling' in the UK / Simon Hudson, Tim Snaith and Graham A. Miller / [et al.]. 12. Accommodation distribution: transforming YWCA Australia into Travel Ys International / Brian King and Carina Slavik. 13. Transforming relationships between airlines and travel agencies: challenges for distribution and the regulatory framework / Jaco Appelman and Frank Go. 14. Airline distribution systems: the challenge and opportunity of the Internet / Bruce Prideaux -- Pt. 3. Destination and regional approaches to tourism. 15. Communication issues in NTO distribution strategies / Linda Osti and Harald Pechlaner. 16. Tourism distribution channels in Canada / Atsuko Hashimoto and David J. Telfer. 17. Distribution strategies for regional and national tourism organizations: an Australian case study / John Jenkins. 18. Attracting Chinese outbound tourists: Guanxi and the Australian preferred destination perspective / Grace Wen Pan and Eric Laws. 19. Use of tourism destination channels for destination marketing: a model and case study / Noel Scott and Eric Laws -- Pt. 4. Transformation in tourism distribution. 20. Transformation and trends in the tourism industry: implications for distribution channels / Chris Cooper and Jan Lewis. 21. The transformation of tourism distribution channels through information technology / Peter O'Connor, Dimitrios Buhalis and Andrew J. Frew. 22. A new paradigm for tourism and electronic commerce: experience marketing using the virtual tour / Yong-Hyun Cho and Daniel R. Fesenmaier. 23. Tourism distribution channels: agendas for future research / Eric Laws and Dimitrios Buhalis
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Tourism Distribution Channels

First Online: 30 September 2017

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Mark Anthony Camilleri 2

Part of the book series: Tourism, Hospitality & Event Management ((THEM))

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The distribution channels link the customers with the businesses. For many years, the tourism businesses may have distributed their products and services through intermediaries. However, the latest advances in technology have brought significant changes in this regard. More individuals and corporate customers are increasingly benefiting of ubiquitous technologies, including digital media . The development of mobile devices and their applications, are offering a wide range of possibilities to the travel industry. Consumers are using smart phones and tablets to purchase tourism products. These issues have inevitably changed the structure of the tourism industry; in terms of control and value for money to consumers. In this light, this chapter describes the traditional and contemporary travel distribution channels as it raises awareness of the potential of new distribution technologies. Afterwards, there is a discussion on the role of digital media in the distribution chain as tourism businesses are increasingly selling directly to customers through the internet via websites and travel search engines . In conclusion, this chapter anticipates what the future holds for the distribution of travel and tourism products.

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Department of Corporate Communication, University of Malta, Msida, Malta

Mark Anthony Camilleri

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About this chapter

Camilleri, M.A. (2018). Tourism Distribution Channels. In: Travel Marketing, Tourism Economics and the Airline Product. Tourism, Hospitality & Event Management. Springer, Cham. https://doi.org/10.1007/978-3-319-49849-2_6

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DOI : https://doi.org/10.1007/978-3-319-49849-2_6

Published : 30 September 2017

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British tourist attacked by shark in Trinidad and Tobago

Officials say beach closures will allow the coastguard and Department of Fisheries to investigate the incident and "neutralise the shark threat, if possible".

Saturday 27 April 2024 18:42, UK

Streetview of Great Courtland Bay, Tobago Pic: Google

A British tourist is in intensive care after being attacked by a shark in Trinidad and Tobago.

The incident on Friday, which occurred near the Starfish Resort in Courland Bay, prompted the government to shut seven beaches and a marine park along the northwestern coast of the Caribbean island.

The shark appeared to be a bull shark, according to the Tobago House of Assembly, and was 8-10ft long and 2ft wide.

Bull shark pictured in Fiji in 2022. Pic: Ric Tapia/AP

Chief Secretary Farley Augustine said the victim was a 64-year-old British man, adding he was in a "stable" condition but had suffered severe injuries to his arm, thigh and stomach.

A local official named him as Peter Smith, from Berkhamsted in Hertfordshire.

"Some reattachments were done, of fingers for example, and hopefully that will save those fingers," Mr Augustine said in a news conference.

"We know that there's significant wounds on one of his legs that cannot be completely closed, but he will require extensive work.

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Shark attacks in Tobago a rarity

Many experts consider bull sharks to be among the most dangerous in the world.

Historically, they are one of the three species most likely to attack humans, alongside great whites and tiger sharks, according to the National Geographic.

But their presence is rarely felt in Tobago.

In fact, there have only been two other shark attacks there in the past 20 years, data from Florida Museum's International Shark Attack File shows.

One of those - a non-fatal attack in 2004 - was a bull shark.

They are far more frequent off the eastern and southern US coasts and in the central Caribbean.

Bull sharks get their name from their short, blunt snout, as well as their aggressive disposition and a tendency to head-butt their prey before attacking, the National Geographic says.

Stephanie Wright, a British tourist who saw the attack, said she noticed people gathering on the beach and thought they may have been aiding someone who had suffered a cardiac arrest.

"Then I saw a dorsal fin come out of the sea and I went: 'Oh my God, it's a shark'. And as it turned I saw the tail come out as well."

Orion Jakerov, watersports manager at the Starfish Resort, also witnessed the incident and said the man was about waist-deep in the water when the shark attacked.

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He told local media the man and others near him in the water had their backs turned and did not see the shark approaching.

"The other people in the water were physically trying to fight the shark off while it attacked," he added.

In a statement the government said shark sightings were reported in the Grafton area and the Buccoo Reef Marine Park.

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Officials said the closures will allow the coastguard and Department of Fisheries to investigate the incident and "neutralise the shark threat, if possible".

A Foreign Office spokesperson said: "We are supporting the family of an injured British man in Tobago and are in contact with the local authorities."

Last year, there were 69 unprovoked attacks and 22 provoked bites worldwide, along with 14 fatalities, according to the Florida-based International Shark Attack File.