Travel Distribution System

What Is Travel Distribution?

The travel distribution system is an evolving creature, there are always new players, consolidations, new technologies and devices. So how do you as a tourism operator keep pace? The first step is to understand the landscape and who are the initial players in online travel distribution.

However, large scale distribution remains a challenge, particularly for companies that sell multiple products, have contracts with multiple suppliers and work with hundreds and thousands of agents.

How Does The Travel Distribution System Work?

The travel distribution system has customarily been very structured with clearly defined functions for single role in the chain. However, online technology and company mergers have transformed the tourism industry, with an increasing amount of crossover in the roles and functions of different sectors of the distribution system. Businesses are engaging a mix of distribution partners to ensure the most impressive way of reaching their target consumers.

As this distribution system continues to evolve, it is essential to understand the structure of the companies that you work with and their relationships with other organizations. With the growth of the internet, many traditional travel distributors such as wholesalers and travel agents are taking an online approach as well as providing their services from a retail shop front. There has also been a development in online travel agencies (OTAs) that operate solely in the online environment.

Both online and traditional distribution partners have the opportunity to work with each other and directly with products and customers. Therefore, it is vital to understand each partner’s role and how your product can advantageous of their part in the distribution network.

Why Work With Travel Distributors?

Travel distributors allow you to develop your customer base far beyond the reach of your own limited marketing budget. They are essential to the inbound tourism industry as overseas consumers still rely heavily on the advice of local travel experts when planning and booking their holidays, particularly in long-haul and emerging markets.

Travel distributors can also offer market intelligence, insights, and advice on a specific market. The travel distribution system covers all the channels through which an international traveler can buy your product. Other than approaching you directly, international travelers may book your product.

IT Solutions for Travel Distribution:

The travel industry is empowering consumers to book online using dynamic channel distribution methods. As the market is highly competitive and intuitive in response to the fares, consumers rely on comparing provides to get the best deals. Thus, there lies an incredible opportunity for travel agencies to provide attractive deals with a focus on consumer choices.

The Travel distribution system covers all the channels through which travel is bought and sold. Distribution channels and consumer purchasing behavior varies from market to market and one requires understanding the structure of the distribution system specific to one’s target markets.

When considering how best to distribute your product to international consumers, it is necessary to understand each channel and the relationships between companies within the distribution channel. Suppliers and wholesalers with their own inventory of flights, hotels and other products rely heavily on b2b channels, as it’s difficult for them to physically serve end customers in various markets.

The two main b2b channels for such companies are OTAs and independent local agents. In this post we will see at the role of the local agents in the distribution chain and how travel companies can use technology to get the most out of distributors.

Key Entities In The Travel Distribution:

• Suppliers such as hotels, airlines, car rental companies and other owners of inventory
• Aggregators/wholesalers (GDSs, Bedbanks, Consolidators etc)
• Inbound tour operators that work through a network of b2b agents
• Local travel agents/distributors that handle a small region and sell products on behalf of tour operators or supplier
• Online Travel Agencies, or OTAs – which sell through travel portals and internet booking engines (Expedia, Booking.com, etc)
• Metasearch engines & Price Comparison sites.

To know more about TripFro Travel Distribution System,

Please visit: https://www.tripfro.com/travel-distribution.php

Whatever your Business requirement, Tripfro offers completely managed best fit online travel booking solution. Join with us to expand your business with exclusive benefits.