1. TOURISM INDUSTRY AND SALES: WHERE ARE WE HEADING TO?
Selma Kadic-Maglajlic
School of Economics and Business in Sarajevo

3. What cha

4. Participants Suppliers Intermediaries Consumers
The travel and tourism industry is very large and complex. All of the participants involved work together to deliver an efficient, profitable and interdependent travel experience for travelers.
To understand how travel is sold and distributed, we first have to look at the participants that are involved in the process.
The participants can be divided into three groups:
Suppliers are companies that create, own and provide the travel products being sold.
Includes: airlines, cruise lines, tour operators, rail lines and even car and RV rental companies
Intermediaries are companies that act as a go-between, linking suppliers with the traveling public.
Example: travel agent
Consumers are anyone that uses travel products.
Includes: consumer are guest, passenger, visitor and customer

5. What cha

7. Some facts
Travellers are likely to spend more on sightseeing than on shopping, souvenirs and nightlife combined (TripBarometer, 2015)
The 5 most common things travellers are willing to spend more on: Sightseeing (53%), special dining experiences (41%), accommodation (41%), activities (35%) and shopping (24%) (TripBarometer, 2015)
Consumers are 44% more likely to learn about a new travel brand on Twitter than on the average social network (Twitter, 2014)
59% of travel related searches are from those aged (Bing, 2016)
Young people are money poor but time rich (WYSE, 2016)
60% of Millennial travelers feel that an authentic culture is the most important part of a travel experience. 
which means that they can spend longer in a destination than a typical tourist. As a result, however, they end up spending up to two thirds more on average
Like to live as a local when they travel. 

8. Traditionalists Baby-Boomers Generation X Generation Y/ Millennials

9. On the negative side, they’ve been described as lazy, narcissistic and prone to jump from job to job.
Millennials are highly connected, technologically advanced and globally conscious. And far more open to trying out new products and concepts than their parents or grandparents ever were. They expect to be inspired, caring more about interesting than comfort. In fact, they have re-defined luxury as “Instagram-able” experiences.

11. Participants Suppliers Intermediaries Consumers
The travel and tourism industry is very large and complex. All of the participants involved work together to deliver an efficient, profitable and interdependent travel experience for travelers.
To understand how travel is sold and distributed, we first have to look at the participants that are involved in the process.
The participants can be divided into three groups:
Suppliers are companies that create, own and provide the travel products being sold.
Includes: airlines, cruise lines, tour operators, rail lines and even car and RV rental companies
Intermediaries are companies that act as a go-between, linking suppliers with the traveling public.
Example: travel agent
Consumers are anyone that uses travel products.
Includes: consumer are guest, passenger, visitor and customer

12. Transactional Selling
Types of Selling
Transactional Selling
Consultative Selling
Training
Experience
Customers need advice
Simplest
Fewer selling steps
Next step in understanding the distribution of travel and tourism is to look at how travel is sold.
You need to understand both distribution and selling as they are in direct relation to each other.
There are two main ways of selling travel products: transactional selling and consultative selling.
Transactional selling is the simplest form of sales and requires the least amount of training and the fewest steps in the sales.
Most things you buy today are transactional sales.
Example: hamburgers, DVDs, soda
Consultative selling is a more subtle and skilled form of selling.
It requires knowledge, training and experience and an insight into people’s needs.
Examples: life insurance or financial planning advice
In the travel industry, travel agents and to a less extent, hotel concierges and reservationists use consultative selling.
Consultative selling is required when potential customers need advice and counseling to purchase travel and tours.

13. Travel Sales: Consultative Selling
Airlines
Direct
Consolidators
Cruise lines
Rail companies
Tour operators
Travel agencies including online agencies
Cruises
Cruise consolidators
Tour companies
Travel agencies
Tours
Customized tours
Public tours
Let’s take a look at the details of how travel is sold and distributed.
Airlines – Most people are surprised to learn that most airline tickets are sold indirect through travel agencies (including online agencies). Of course, they also sell tickets direct as well. Selling through travel agencies may eventually change as most airlines are reducing or eliminating the commission they give to agencies for selling their tickets. Tour operators, rail companies, and cruise line also purchase airline tickets to build a package or bundle services for a complete experience bought all together. Airline consolidators will buy blocks of seats on a flight, often at the last minute, and sell them to the public at discounted prices. Most people think of airlines as being a commodity and bought based on price and flight times available.
Cruise lines – About 80% of all cruise bookings are made through a travel agency as people are reluctant to buy complex and costly experiences on their own. Tour companies offer cruises through their services and often bundle a pre- or post-tour to create value. Cruise consolidators, somewhat like airline consolidators, buy blocks of staterooms and sell them to the public at discounted prices. Land tours for mid-trip port stops are sometimes offered with a cruise package for a complete experience.
Tours are sold direct to the public from tour operators and tours are also offered through travel agencies. Tour packages offered to the public are most often called public tours and will offered with departures on a regular schedule. Tours are also sold to pre-formed groups at a special price and these types of tours are called customized tours or charter tours.

14. Background of the study
How to improve effectiveness of IM?
Replacing a salesperson: 200% of that salesperson’s annual wage (Graham-Leviss, 2011)
Tour operators are struggling to maintain talented first line employees  Internal Marketing
Internal Communication
Internal Marketing Research
Trainings
How to make sure that benefits that arise from IM transfer to satisfied customers (Lassak et al., 2012)

15. Objectvies of the study
explore the complex linkages among IM, TO’s ability to align customer value creation goals across functional units and customer satisfaction
examine moderating influence of emotional labor on relationship between goal alignment and customer satisfaction

16. Conceptual model

17. Data collection and analysis
Large TO that operates in 13 countries in CEE
Frontline customer-facing personnel in 6 countries: mature markets (Austria, Croatia, Slovenia) and maturing markets (Bosnia and Herzegovina, Moldova and Romania).
290 usable responses
Individual travel components
each part of the travel is purchased separately
Packaged travel
several components are “bundled” and purchased as one product
All-inclusive travel
all or most components purchased together
The respondents have a mean of years of direct customer contact working experience (SD = 8.21), out of which an average of 9.08 (SD=6.27) years has been spent in the financial services company. A total of 64% of the respondents were female while 36% were male. While most of the respondents had a Bachelor degree (52%), some of them were holding a Master’s degree (26%) and a doctoral degree (1%), while the rest had secondary education only (20%).

18. Data collection and analysis
Previously validated measures:
Internal marketing proposed by Huang and Rundle-Thiele (2015);
perceived goal alignment adopted from Jap (1999);
customer satisfaction are adapted from Grönroos, 1990; Reynoso and Moores, 1996; Rafiq and Ahmed, 2000).
CFA; SEM
The respondents have a mean of years of direct customer contact working experience (SD = 8.21), out of which an average of 9.08 (SD=6.27) years has been spent in the financial services company. A total of 64% of the respondents were female while 36% were male. While most of the respondents had a Bachelor degree (52%), some of them were holding a Master’s degree (26%) and a doctoral degree (1%), while the rest had secondary education only (20%).

22. Thank you for your attention!
Selma Kadic-Maglajlic
School of Economics and in Sarajevo

23. Results
CFA