travel distribution technology - Travel Agency Management

1. A PRESENTATION ON
‘ROLE OF TRAVEL DISTRIBUTION
TECHNOLOGY MAKING TRAVEL EASY’
By,
PRATHIKSHA R
VII Semester MTA
DEPARTMENT OF TOURISM
AND HOSPITALITY MANAGEMENT

2. DISTRIBUTION TECHNOLOGY
Distribution technology can help you improve how the travel
experience is offered, distributed and managed, by providing
technology services with the following goals:
● Consolidating the travel value that begins with air, rail, car,
hotel and cruise access and continues with support
services that provide the complete client experience.
● Integrating distribution channels into a predictive client
service platform that can provide an individualized service
response.
● Enhancing business traveler experience by providing
instruments that permit accommodating schedule changes
while on the go.

3. DISTRIBUTION TECHNOLOGY
● Expanding your product differentiation capabilities through
personalized services.
● Analyzing the performance of your products with best-of-
breed visual business intelligence and decision support
systems.
● Taking full advantage of your Big Data via its proper
collection, management and analysis.
● Migrating to a lower-cost technology stack that is modern,
flexible, and easy maintainable.
● Minimizing the operational costs of legacy applications and
platforms.

4. DISTRIBUTION CHANNEL
Travel agents & Tour operator
It is important to understand the sales distribution
systems and their role in influencing sales. The
tourist product is highly perishable. The consumer
must go to the destination.

5. DISTRIBUTION CHAIN
The Chain of Distribution
1. Two level Distribution Channels
● PRINCIPLES
↓
● TRAVEL AGENTS
↓
● TOURISTS

6. DISTRIBUTION CHAIN
2. Three level Distribution Channels
PRINCIPLES
↓
TOUR OPERATORS
↓
TRAVEL AGENTS
↓
TOURISTS

7. DISTRIBUTION CHANNEL FUNCTIONS
1. Negotiation – Agreeing on price and other term of the
offer so that ownership or possession can be transferred.
2. Physical distribution – transporting and storing
goods.
3. Financing – Acquiring and using funds to cover the
costs of channel work.
4. Risk taking – Assuming financial risks such as the
inability to sell inventory at full margin.

8. POSSIBLE REACTION OF TRAVEL AGENCY
● High cost of sales force
● Greater Control – feeling of comfort and
security in transaction
● Flexibility – make possible changes
● Increased profits – no commission to any
middleman
● Time saving – by direct communication
● Direct Distribution System Sales are realized
through direct contact

9. ADVANTAGES
● Single payment
● Lower price
● Greater variety
● Professional consultation
● Benefits of customers
● Distribution Systems
● Indirect Distribution System
● Use one or more travel intermediaries

10. THANK YOU