Chapter 2

Chapter 2

Tourism Promoters

• Learning Objective:

1. Travel Intermediaries2. Travel Agents and Tour Operators.3. MICE Segment4. National Tourism Organizations ( NTOs/NTBs)5. Distribution Channels.

Integrated Tourism Model

TRAVEL INTERMEDIARIES

Travel Intermediaries are firms that provide information on, promote and distribute a wide variety of tourism services products to the consumers in a cost-effective and efficient manner.

Role of Travel Intermediaries

Bring the travel service suppliers and the consumers together.

1.PROVIDE INFORMATION.2.PROMOTE TOURISM PRODUCTS3.DISTRIBUTE TOURISM PRODUCT.

TRAVEL INTERMEDIARIES

CONSUMERS

Travel Agents

Tour Wholesalers

Internet

Hotel Representatives

Consortia & Reservations Systems

National, State, and Local Tour Agencies

Travel Intermediaries

WHY USE INTERMEDIARIES?

• Travellers may various services during one trip– Land, Air, Ship, Taxi, Hotel etc…

• Traveller may be far away from the tourism service provider– A hotel in Hanoi may require a travel agent in Tokyo to

sell the rooms to the Japanese travellers.

• The Goal of the service supplier is reaching, serving and satisfying the travellers

Tour Operation

• 1841 Mr. THOMAS COOK HAD AN IDEA.

Thomas Cook

DEFINITION OF A TOUR PACKAGE

A tour package comprise two or more tourism services priced together • Air Ticket • Land Transportation• Hotel room• Ticket to Attractions or Events• Sight Seeing Trips

– EXAMPLE: 3 DAY 2 NIGHTS BATAM.• RETURN FERRY• STAY AT NOVOTEL, Batam.• ROUND OF GOLF OR SPA PACKAGE• TAXI TO AND FROM FERRY TERMINAL.• $200.00

Why People buy Tour Packages?

• Major reasons for purchasing a tour:•         Convenience•         One-stop shopping•         Can Save Money.•         Expert Opinions.•         No Hassles.• Travel Agents are primarily sellers of tour

packages

TOUR OPERATORS/TOUR WHOLESALERS

• Purchase tourism services in bulk and then mark-up the price and resell in packaged form.– Organise activities around attractions

• Also known as Wholesale Operator, Wholesale Agent, Tour Packager, Tour Wholesaler.

• Airlines have subsidiaries involved in tour operations.

Risk for a Tour Operators….

• Wholesale Operators bear many financial risks in the tour packaging business– Highly perishable product – Services paid for in advance, and if they are not

sold, cannot be “returned”– Mark-up is low, and a commission has to be

paid to the Travel Agent @ Retail Level

TRAVEL AGENTS

Travel agencies are like the “department stores” of the travel industry.

Travel Agent (TAs) perform many functions.• Book Airline Tickets• Book Hotel Rooms• Sell Tour Packages• Provide Information• Visa and Immigration Services ….

Usually paid commission by the hotel, airline .

Can Travel Agents do everything?• Try Booking a train ticket or coach ticket

between City A and City B in UK from Singapore using a travel agent.

• SMALL AND MEDUIM SERVICE PROVIDERS?– BUDGET TRAVELERS and Youth hostels?

Other Tourism Promoters

• MICE Planner• National Tourism Organizations• Direct Marketing by Service Providers

MICE Planner

• MEETINGS, • INCENTIVES, • CONVENTIONS & • EXHIBITIONS.

In 2005 MICE sector earned $3 Billion in Tourism Receipts (30%)for SG.In 2015 SG aiming for $10 Billion

Meeting Planners Provide…

• MEETING ROOMS• ACCOMMODATION• FOOD AND BEVERAGE• TRAVEL• TRANSFERS• SUPPORT SERVICES…..

ACCOMMODATION/VENUES

• Hotel accommodation• Unique accommodation/meeting/function

hotels and venues• Conference centers• Historical/cultural venues

ACTIVITIES

• Unique themed events• Production of theme décor/costumes• Team building• Activity hours/days• Incentive quality sightseeing/excursions• Pre/post tours

EVENT/STAFFING• Full secretariat service and logistical support• Speakers• Celebrities• Audiovisual equipment and support• Multilingual staff• Guides (knowledgeable and entertaining!)• Registration• Simultaneous translation• Security• Production of press announcements and conference

proceedings

TRANSPORT/TRAVEL

• Deluxe motor coaches• Chauffeur driven limousines• Car rental• Yacht chartering• Aircraft chartering• VIP airport welcome services• Travel support services/ticketing•

MEETINGS

• CORPORATE MEETINGS • SMALL GROUPS• SMERF GROUPS ( SOCIAL,

MILITARY,EDUCATIONAL, RELIGIOUS AND FRATERNAL ORGANISATIONS)

INCENTIVES TRAVEL

• Is normally a reward for participants for achieving or exceeding a goal. 

• Common among major corporations.A very popular manner of rewarding &

giving recognition to sales people

CONVENTIONS• Conventions are

usually the annual meeting of an association and include general sessions, committee meeting, and special-interest sessions..

EXPOSITIONS

Special Events

Corporate Hospitality Companies

Home Work 2Who is Who is Travel Sector?

• Find out Top 3 in the your destination – Top 3 Car Rental Companies.– Top 3 in MICE company.– Top 3 Tour Operators.– Top 3 Airlines

Distribution

• Tourism Promoters are distributors of Tourism Suppliers.

DISTRIBUTION CHANNELS

TOURISMSERVICESUPPLIER

TOURISMSERVICESUPPLIER

TOURISMSERVICESUPPLIER

CUSTOMER

Direct Marketing

TRAVEL AGENT

TRAVEL AGENTTOUR OPERATOR

1 LEVEL

2 LEVEL

GDS AND CRS

TravelAgent

GDS Examples

Galielo

• Another GDS that was started by owned by airline companies now part of Travelport.

• Travel port also owns online Distributor Orbitz

Direct Marketing• DM happens when tourism services suppliers to

reach to the consumers directly and vice versa. • Hotels emailing/posting special fares to clients in

Database.• Customer buying Directly from Supplier.

– Websites– 100% E Ticketing by 2008.– 1-800 Toll Free Phone Number

Online Travel

NEW TRENDS IN DISTRIBUTION

• MORE USE OF ONLINE SYSTEMS– WWW.TRAVELOCITY.COM

• DIRECT TO CONSUMER WEB BASED– WWW.HILTON.COM

Recap:Travel Intermediaries Roles

1. Provide information 2. Promote Tourism Products 3. Make reservations and other travel

arrangements4. Assemble packages of services5. Prepare, issue and sell tickets 6. Bear financial risk by buying services in bulk

for resale to individuals/ groups.

NATIONAL TOURIST ORGANIZATIONS(NTOS)/TOURIST BOARDS(TB)

Government or quasi-government agencies that market destination tourism.

Example : CNTO /STB/ VNTO

FUNCTIONS OF THE NTO

• The NTO (although it may vary from country to country) is responsible for the following functions:

•         Conduct Tourism Market Research.•         Representation in markets•         Organization of workshops and trade shows•         Familiarization trips•        Participating in joint marketing schemes – providing

support to tourism suppliers & intermediaries•          Support for new tourism services business•         Providing consumer assistance and protection

– And General education

NTO Marketing

GOALS OF A NTOSource: Ernie Heath and Geoffrey Wall., Marketing Tourism Destination (New York; Wiley 1992), p 65.

EC O N O M IC(B R IN G T O U R IS M R E V E N U E )

C O N SU M ER(P R O T E C T A N D E D U C A T E

C O N S U M E RIN T E R E S T S )

EN VIR O N M E N TALN A T U R A L R E S O U R C E S

(P R O M O T ES U S T A IN A B L E T O U R IS M )

G O VER N M EN TA LC O R D IN A T E

N A T IO N A L A N D L O C A LG O V E R N M E N T A L E F F O R TS

N ATIO AN L TO U R ISM BO AR D

Home Work 2

• Visit website of the National Tourism Organization's of your destination.

• Study the Goals that they have set for your country’s tourism