Matakuliah : G1184 Travel Management Tahun : 2005 Pertemuan ke-: 4-5 Chapter 2 (Power Point 4.1) Pokok Bahasan: Intermediaries Materi:  The Nature of Intermediation  The Role of Retail Agent  The Role of Tour Operator

Learning Outcomes Pertemuan ke 4-5 (Power Point 4.2) Pada akhir pertemuan ke 5, diharapkan mahasiswa akan mampu : membandingkan beberapa cara penjualan produk perjalanan kepada customer (TIK 6) membandingkan fungsi dan peran travel agent dengan tour operator (TIK 7)

(Power Point 4.3) For travel and tourism: intermediation comes about through tour operators or wholesalers assembling the components of the tourist trip into a package and retailing it through travel agents, which deal directly with the public

(Power Point 4.4) The task of intermediaries: to transform goods and services from a form which consumers do not want, to a product tghat they do want

(Power Point 4.5) Travel agents make the bulk of their money from selling inclusive tours and airline tickets

(Power Point 4.6) The most common way of distributing foreign holiday travel in Europe is through: i nclusive tours packaged by tour operators and sold by travel agents

(Power Point 4.7) Benefits achieved in the present of travel intermediaries: Producers: are able to sell in bulk and transfer risk to the our operators Suppliers: can reduce promotion costs Travelers: can avoid search and transaction costs in both time and money Consumers: may gain knowledge of tour operation and minimize uncertainties Tourists: can get lower prices Destinations: may benefit from international marketing network of tour operators

(Power Point 4.8) Structure of Distribution Channels tourist products → tourists tourist products → own outlets → tourists tourist products → retail agents → tourists tourist products → tour operators → retail agents → tourists tourist products → tour operators → tourists

(Power Point 5.1) Vertical Integration Forward: when an airline establishes its own tour operating company e.g.: where a tour wholesaler acquires through merger / purchase a retail travel chain

(Power Point 5.2) Vertical Integration Backward: wholesalers own not only travel agents but also direct mail systems e.g.: where a scheduled airline forms links or even owns multinational hotel chains to secure trading advantages over rivals

(Power Point 5.3) Horizontal Integration: a way to strengthen 2 operators’ buying power with regard to wholesalers e.g.: when 2 tour operators or 2 travel agents amalgamate, through merger or takeover

(Power Point 5.4) Commission: The most important item of income to the agent

(Power Point 5.5) Retail travel trade is characterized as ease of entry, because: there is no stock and capitalization is low

(Power Point 5.6) Travel agents are necessary to hold a licence from the IATA and ARC (in the USA)

(Power Point 5.7) The Brochure is designed to encourage customers to buy and is often the only information they have concerning the resort until they arrive there

(Power Point 5.8) Organizing package trips is complex, so some tour operators do not put together their own program, simply contract the work out to a wholesaler and pass on the bookings as they come in.