Organizations in the Distribution Process

Organizations in theDistribution Process7LEARNING OBJECTIVESBecome familiar with tourism distribution systems organizations and their functions.Understand travel agents and their role in the distribution system.Consider the impact of the Internet on the distribution system.Examine the role of the tour wholesaler.Recognize that travel suppliers can use a combination of channels of distribution.OPERATING SECTORS OF THE TOURISM INDUSTRYSuppliersTransportation Providers Accommodations Food Service ResortsRecreation, Entertainment, etc.CustomersIndividuals Pleasure Groups Business Groups, Etc.TourWholesalerSpecialtyChannelerRetail TravelAgentSpecialtyChannelerSpecialtyChannelerSpecialtyChannelerTourWholesalerTourWholesalerTourWholesalerRetail TravelAgentRetail TravelAgentRetail TravelAgentDirectChannelviaInternetTelephoneSuppliersOfficeHost RetailTravel AgentHome-basedTravel AgentTOURISM DISTRIBUTION CHANNELSTOP TEN TRAVEL AGENCIES2009 SalesUNITED STATES TOUR OPERATORS ASSOCIATION FACT SHEETYear Founded1972 What is USTOA?A national organization of wholesale tour operators in the U.S.What is a Tour Operator?An entity whose primary purpose is to plan, arrange and market tours and/or vacation packages featuring domestic and/or worldwide destinations. The cost of such tour and vacation packages generally includes air and/or land transportation, ground arrangements such as accommodations, meals, local guides and other related services. The tour and vacation packages are commissionable to retail travel agents, who, in turn, sell the product to the publicUSTOA Offices275 Madison Avenue, Suite 2014, New York, NY 10016Ph: (212) 599-6599; Fax: (212) 599-6744; e-mail: information@ustoa.comUSTOA Web Address:www.USTOA.com, www.USTOA.travelUSTOA’s Mission:Inform the travel industry, government agencies and the public about tour operators’ activities and objectivesEducation consumers on matters pertaining to tours and vacation packagesHelp consumers recoup financial loss arising from an Active Member’s bankruptcy or insolvencyRepresent the tour operator community and cooperate with other trade organizations and government agenciesFacilitate and encourage tourism on a worldwide basis.Help maintain a high level of professionalism within the tour operator industry.TRADE FAIRS AND SHOWSSpecial entities in promotion /distribution of travel are fairs, exchanges, shows, exhibitions, and markets. The entities bring buyers and sellers together at venues where billions of dollars of business is transacted.ITB BERLINThe biggest of these entities is ITB Berlin, which takes place in March every year. ITB is, without doubt, the largest travel trade show in the world. Visit ITB’s Web site at www.fair.itb-berlin.de.WORLD TRAVEL MARKETThe World Travel Market (WTM) held annually in London each November is the world’s second largest travel trade show. Visit its Web site at www.wtmlondon.com.POW WOWIn the United States, the major trade show is USTA’s International Pow Wow.See www.ustravel.org/events/international-pow-wow