II. Unit 1
II. Unit 1
INTERMEDIARY COMPANIES
The term intermediaries can be any dealer who acts as a link in the chain of distribution between the company and its
customers. In the tourism industry, travel agents (wholesale, retail), tour operators… are considered the intermediaries.
HISTORY
Firs step. Supply Creation.
1600’s guidebooks and Grand Tour.
1841 Thomas Cook created the first package.
1920’s emerge of car industry and appearance of trips by car 1930’s emerge of airline companies.
INTERMEDIARY COMPANIES
INTERMEDIARY COMPANIES
BENEFITS
Producers. Are able to sell in bulk and so transfer risk to the tour operator and can reduce promotion costs.
Consumers:
• Can avoid search and costs purchasing an inclusive tour.
• Specialist knowledge.
• Lowe prices.
Destinations. In developing countries where budgets are limited, may benefit considerably from the international
marketing network of tour operators.
STRUCTURE OF DISTRIBUTION CHANNELS
INTERMEDIARY COMPANIES
CONCEPTUAL MODELS OF THE PROCESS AND FACTORS INFLUENCING AGENTS’ DESTIANTIONS RECOMMENDATIONS
History
In Europe, pleasure travel started during the 1840s, when Thomas Cook (1808 – 1892) began conducting tour around
England and later around Europe. Nowadays, Thomas Cook is still one of the most important Tour Operators.
2. Capacity planning
• Tour specifications
• Negotiate with and contract suppliers.
3. Financial evaluation.
4. Marketing.
5. Administration.
• Reservation, staff and accounting.
6. Tour management.
Travel Agent
A travel agency’s main function is to act as an agent, selling travel products and services on behalf of a supplier.
Consequently, unlike other retail businesses, they do not keep a stock in hand, unless they have pre-booked hotel rooms
and/or cabins on a cruise ship for a group travel event such as a wedding, honeymoon, or a group event.
Companies are required to be licensed as a travel agent.
• Travel agents sell and administrate tour packages.
• They help you to choose a suitable package.
• Their job ends when you start your vacation.
• They have less responsibility than tour operators.