Learn about the intermediaries that currently exist and how to choose your distribution channels.
New intermediaries in the online tourism market
Traditional situation
Consumers
Tourism intermediation
and now, are new intermediation processes appearing...?
or are we in the process of disintermediation?"
which are the traditional online intermediaries?
Retail agencies
Characteristics:
- Market wholesalers' products, selling directly to the consumer.
- construct and sell their own packages.
Tour operators
Characteristics:
- agencies that prepare and organise all kinds of services and packages to be offered to retail agencies
- unable to offer their products directly to consumers.
Global distribution system (gds)
Characteristics:
- provide access to large databases of tourism service providers using an extensive network of retail professionals.
- focused on selling airline tickets, rail tickets and hotel rooms.
- they charge a fee to the service provider.
Internet distribution systems (ids)
Characteristics:
- connect the service provider with the end user.
- generally sell: accommodation, flights and rent a car.
- normally charge booking fees.
Central reservation system (crs)
Characteristics:
- connect the tourism provider with the gds or ids.
- useful for small providers who cannot access the gds.
- represent the service provider in promotional activities.
- they charge by fixed fee or transaction fees.
Principally in the hotel sector, but also in other sectors:
We can differentiate between:
- central chains.
- central partnerships.
- representation companies and quality clubs.
- central business associations.
- reservation centres in public administration.
What are the new online intermediaries?
Meta-search engines are comparison sites.
- search all engines or browsers.
- do not have their own database.
Social channels web pages that offer huge discounts on different services and products.
How do meta search engines work?
Webpages, "search engines", "meta search engines" y "client"
Meta search engines
For consumers
Advantages: expand their search
Disadvantages: can be slower than performing a normal search
For the tourism company
Advantages:
- gives better results that just using search engines
- opinion of the client counts.
- we can increase traffic on our website.
Disadvantages:
- to appear in the search results, you have to be positioned on search engines or on
OTAS (online travel agencies).
social channels
They are usually more general but they also sell tourism products.
A mixed set of e-marketing that is very focused on social networks and the sale of e-commerce stock.
They do not only sell accommodation, although they did start that way.
Social channels
Aggressive e-marketing and social media campaigns
Attractive products
Social channels
For consumers
Advantages: products at reduced prices.
Disadvantages:
- prepaid.
- coupons with expiry date.
for the tourism company
advantages:
- high levels of sales
- access to new clients.
- quick sales
disadvantages:
- decrease in prices.
- sales are simple. no purchasing of other products.
- not a loyal customer.
How to choose the distribution channels?
Objective market. What channels does your objective market use?
Product or service. What channels are best suited to offer your product or service?
Budget. What channels best adapt to your budget?
Compatibility between channels. How do the chosen channels complement each other?
