Travel distributors lets you widen up your customer base way beyond your own limits of marketing budget. They are significant inbound industry of tourism as overseas consumers depends heavily on the local travel agents' advices and suggestions while planning their holidays, especially in emerging markets.
Travel distributors also offer advice and insights on global markets and suggest improvements in your product that helps in meeting the requirements of your target market.
All the channels are covered by a travel distribution system through which a global traveler can purchase your product. Apart from direct approach, the international travelers can also book your product via:
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Agents of local travel
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Tour operators who directly market to consumers
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Operators of inbound tours
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On line portals
Consumer buying behavior and distribution channels differ from market to market so you have to understand the distribution system structure which is specific to your target audience. When planning in what ideal way to distribute your product to consumers world wide, it is important to know every channel and the relationships between companies within the distribution channel.
How the System Works
The travel distribution system is structured in a traditional way, and its functions are clearly defined for each role in the chain. However as company and technology mergers transform the tourism industry, the amount of cross-over in the functions and roles of different sectors of the distribution system, is increasing.
The travel distribution system that is structures traditionally includes Inbound Tour Operators (ITO's) based in different countries, overseas based tour wholesalers and the international retail agents, who are connections to the global consumer. However, from market to market it varies considerably. Japan is a country where the system is quite structured whereas in other markets a structured system is not yet formed.
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