Pokok Bahasan: Intermediaries Materi:  The Nature of Intermediation

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Matakuliah
: G1184 Travel Management
Tahun
: 2005
Pertemuan ke-: 4-5
Chapter 2
(Power Point 4.1)
Pokok Bahasan: Intermediaries
Materi:
 The Nature of Intermediation
 The Role of Retail Agent
 The Role of Tour Operator
Learning Outcomes Pertemuan ke 4-5
(Power Point 4.2)
Pada akhir pertemuan ke 5, diharapkan
mahasiswa akan mampu :
• membandingkan beberapa cara penjualan
produk
perjalanan kepada customer (TIK 6)
• membandingkan fungsi dan peran travel agent
dengan tour operator (TIK 7)
(Power Point 4.3)
For travel and tourism:
intermediation comes about through
tour operators or wholesalers
assembling the components of the
tourist trip into a package and
retailing it through travel agents,
which deal directly with the public
(Power Point 4.4)
The task of intermediaries:
to transform goods and services from
a form which consumers do not want,
to a product tghat they do want
(Power Point 4.5)
Travel agents make the bulk
of their money from selling
inclusive tours
and
airline tickets
(Power Point 4.6)
The most common way of distributing
foreign holiday travel in Europe is
through:
inclusive tours
packaged by tour operators
and sold by travel agents
(Power Point 4.7)
Benefits achieved in the present of
travel intermediaries:
• Producers: are able to sell in bulk and transfer risk
to the our operators
• Suppliers: can reduce promotion costs
• Travelers: can avoid search and transaction costs
in both time and money
• Consumers: may gain knowledge of tour operation
and minimize uncertainties
• Tourists: can get lower prices
• Destinations: may benefit from international marketing
network of tour operators
(Power Point 4.8)
Structure of Distribution Channels
tourist products → tourists
tourist products → own outlets → tourists
tourist products → retail agents → tourists
tourist products → tour operators →
retail agents → tourists
tourist products → tour operators → tourists
(Power Point 5.1)
Vertical Integration Forward:
when an airline establishes
its own tour operating company
e.g.: where a tour wholesaler acquires
through merger / purchase
a retail travel chain
(Power Point 5.2)
Vertical Integration Backward:
wholesalers own not only travel agents
but also direct mail systems
e.g.: where a scheduled airline forms links
or even owns multinational hotel chains
to secure trading advantages over rivals
(Power Point 5.3)
Horizontal Integration:
a way to strengthen 2 operators’
buying power with regard to wholesalers
e.g.: when 2 tour operators or 2 travel agents
amalgamate, through merger or takeover
(Power Point 5.4)
Commission:
The most important item
of income to the agent
(Power Point 5.5)
Retail travel trade is characterized as
ease of entry, because:
there is no stock and
capitalization is low
(Power Point 5.6)
Travel agents are necessary
to hold a licence from the
IATA
and ARC (in the USA)
(Power Point 5.7)
The Brochure
is designed to encourage
customers to buy and is often the
only information they have
concerning the resort until they
arrive there
(Power Point 5.8)
Organizing package trips is complex,
so some tour operators do not put
together their own program, simply
contract the work out to a wholesaler
and pass on the bookings as they come in.
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