Travel distribution systems

Learning objectives

At the end of this chapter the reader will be able to:

• Distinguish between direct and indirect distribution systems.
• Determine the advantages to the producer and consumer of each system.
• Outline the appeals of group travel and barriers to be overcome in its promotion.
• Discuss the economics of tour wholesaling and describe the steps involved in planning, marketing, and operating a group tour.
• Describe the importance of the retail travel agent to tourism.
• Discuss how a travel agency operates and makes money.
• Define and correctly use the following terms: direct distribution system, retail travel agent, tour wholesaler, independent tour, escorted tour, return on equity, package, preformed group, guide, International Airline Travel Agent Network, Cruise Lines International Association, National Railroad Passenger Association, indirect distribution system, tour operator, speciality channeler, hosted tour, special format tour, tour specifications, shell, tour escort, Airline Reporting Corporation.