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Distribution Mix In Tourism. Indirect distribution channels Travel clubs Incentive travel planners Convention/meeting planners Corporate travel managers.

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Presentation on theme: "Distribution Mix In Tourism. Indirect distribution channels Travel clubs Incentive travel planners Convention/meeting planners Corporate travel managers."— Presentation transcript:

1 Distribution Mix In Tourism

2 Indirect distribution channels Travel clubs Incentive travel planners Convention/meeting planners Corporate travel managers Retail travel agents Tour wholesalers and operators Internet travel services

3 Direct distribution to customers Lodging Cruise lines Attractions Gaming facilities Rental cars Airlines/bus/rail Restaurant/food service

4 Channel integration Vertical - ownership by one organization of all or part of tourism distribution channel; total control of information to consumer Horizontal - ownership of similar businesses by one organization in the distribution channel; shared messages

5 Tours and packages 1. Escorted - tour leader/director accompanies tourists 2. Hosted - host meet tourists but does not accompany them 3. Packaged - provides transport and lodging but usually not host or leader 4. Independent - families/friends go together

6 Tour marketing Slick brochures, videos Trade print advertising, trade shows Consumer broadcast and print Direct response with 800, www address, fax

7 Incentive travel planners Corporate motivation tool to increase performance Client appreciation vehicle to retain business Involves destination management companies or inbound tour operators Driven by return on investment (ROI)

8 Forces Shaping Tourism

9 Culture and society Cultures have shared values and attitudes High context - nonverbal, implied messages Low context - verbal, definitive statements Individualistic - freedom, independence Social - group identity, shared motivations Task or time orientation

10 Role of leisure time Shorter workweek, longer weekends More women and retired travelers Higher disposable and discretionary income Emerging youth camp/vacation trend Increasing trips to distant family members

11 Traveler types and preferences Achievers travel for business; Societally Conscious are self-reliant and price conscious Other-directeds travel for show; Inner-directeds travel for self Allocentrics want independent travel, places with few tourists; territory free, high energy Psycocentrics want group travel, well-developed attractions; territory bound, low energy

12 Travel Motivations Maslows hierarchy for travel Intellectual - learning and discovery Social - friendship, esteem needs Competence-mastery - challenge, competition Stimulus-avoidance - solitude, stress relief

13 Product vs. consumer driven motivations - The Health Spa product v ATTRIBUTES massages, food, luxurious surroundings BENEFITS stress relief, diet, comfort VALUES self-relaxation, inner peace ^ consumer

14 Selecting a Destination Reality vs. perception Company/place name and slogan Distance Self-image preservation Competitive advantage Expectations

15 Purposes of Travel

16 Business travel market 1. Regular business traveler is a 40s male Wants service, timeliness; is demanding Seek value rather than economy 5 segments (frequent, women, luxury, international, occupational) Future factors: economic, regulatory, globalization, automation

17 Business travel market 2. Business meeting, conference attendees Venue selection based on: non-smoking rooms, concierge, 24-hour room service, gift shop Highest image cities: San Diego, San Francisco, New Orleans, DC, Chicago, Boston, San Antonio, Seattle, Atlanta

18 Business travel market 3. Incentive traveler is a high-achieving salesman Incentive buyers criteria for selection are: budget, time of year, participant background, incentive history, accessibility, facilities, activities for participant and spouse (or companion)

19 Pleasure and personal travel market segments 1. Get away/family travelers Visit relatives, driving distance, kid friendly 2. Adventurous/educational Seek new destinations, good accommodations, outdoor activity options 3. Gamblers/fun travelers Prefer resorts and nightlife

20 Pleasure travel markets 1. Family market - theme parks, beach 2. Group tours - multi-destinations 3. Gaming market - day-trippers and destination casinos 4. Senior travel market - escape/learn, retirees, active storytellers 5. Cruise market - enthusiastic/restless boomers, luxury, shoppers, explorers


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