TOURISM DISTRIBUTION
Like most industries, being a part of the tourism industry requires you to have industry
specific knowledge to create and run a successful business.
Understanding the distribution systems, recommended rates of commission, and the roles of
various booking agents is essential for a successful business.
This section has been designed to aid you in your understanding of the tourism industry.
To explain it simply, there are two ways of reaching potential clients:
DIRECTLY
You can target visitors directly through advertising, brochure distribution, website, social
media, client referrals etc...
INDIRECTLY
Another way to promote your business is through a third party (indirectly) by using tourism
distribution channels such as retail travel agents, wholesalers and inbound tour operators.
A TOURIST has seen footage of beautiful Western
Australia on TV and heard about it through his friends.
He decides to find out more…
Tourist visits his local RETAIL TRAVEL AGENT to enquire
about WA, ends up booking an 8 week adventure
including accommodation, tours and activities…
Travel agent plans a comprehensive WA itinerary
through the brochure of a TOUR WHOLESALER and then
proceeds to book all tour options through them…
The Tour Wholesaler contacts an INBOUND TOUR
OPERATOR (ITO) to book each individual element of the
tour itinerary, such as accommodation and tours…
The Inbound Tour Operator contacts individual LOCAL
TOUR OPERATORS to book accommodation and tours
directly.
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WHAT IS A RETAIL TRAVEL AGENT?
Retail travel agents sell travel services directly to customers and act on their behalf to book
and purchase holiday packages, travel, accommodation, tours and so on. It is not feasible
for small Retail Travel Agencies around the world to have specific information and up-todate rates for every tour operator in Western Australia. To source this information they go
to Tour Wholesalers who literally wholesale tour products.
FAST FACTS:
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Retail Agents are a one-stop travel shop as they can assist customers with several
travel queries and make all bookings at the one location.
Operators rarely deal directly with a retail travel agent; instead they go through a
Tour Wholesaler or an inbound tour operator.
Local Visitor Centres can also be considered as retail agents.
WHAT IS A TOUR WHOLESALER?
Tour Wholesalers operate in a very similar way to wholesalers in other industries. But,
instead of supplying tangible products they supply touring options including travel,
accommodation, and tours.
A tour wholesaler supplies to retail travel agents, they DO NOT sell directly to consumers.
Wholesalers link individual tourism operators with retailers.
They consider what type of tour program would appeal to a particular market and promote
that accordingly.
FAST FACTS:
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Tour wholesalers package products together. They are able to achieve lower prices
because of the volume of business and exposure they generate.
National and international tour wholesalers will mostly turn to a local, WA based,
inbound tour operator to book specific touring options.
Tour wholesalers specialising in WA products will deal directly with tourism
operators.
Every wholesaler will have a different price for operators to participate in their
programs.
Wholesalers will rarely include a product in their brochures that doesn’t have a
proven track record.
BENEFITS TO OPERATORS OF BEING INCLUDED IN A WHOLESALE PROGRAM:
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A comprehensive brochure is produced and distributed to travel agents in Australia,
and often overseas and an industry launch is usually held to promote the brochure.
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The wholesaler’s representatives will conduct sales calls on retail travel agents to
promote the program and operators in it.
Wholesalers have computerised, often global, reservation systems to record
bookings.
Familiarisation visits for the retail industry and media are conducted to give staff an
opportunity to experience the product first hand.
Wholesalers undertake advertising campaigns aimed at both consumers and retail
travel agents.
WHAT IS AN INBOUND TOUR OPERATOR?
Inbound tour operators are Australian based businesses that specialise in developing
programs and itineraries for distribution through overseas travel distributors.
ITOs are a vital link between Australian tourism products and the overseas travel
distributors that buy them, including travel wholesalers, direct sellers, travel agents, meeting
planners and event planners.
An ITO provides consultation on itinerary planning and product selection, and coordinates
the reservation, confirmation and payment of travel arrangements on behalf of their clients
by working with overseas travel companies and with Australian tourism products.
They bring the components of accommodation, tours, transport and meals together to
create an itinerary.
BENEFITS TO OPERATORS OF USING AN INBOUND TOUR OPERATOR:
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Inbound tour operators conduct a number of activities to attract the interest of
overseas wholesalers and retail agents, and to make them aware of the services and
products in Western Australia.
They create individually tailored packages eg. farm-stay, self-drive, nature-based
tourism, special events, etc
They attend trade workshops, missions and shows.
They provide international exposure for your product.
The Australian Tourism Export Council (ATEC) can provide members with a list of ITOs and
the markets in which they operate.
WHAT ARE THE DIFFERENT INBOUND MARKETS?
Inbound tour operators put together different tourism products to create packages to suit
the needs of different inbound markets. These include:
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FULLY INDEPENDENT TRAVELLER (FIT)
This individual traveller buys from a wholesale brochure or buys a specially tailored itinerary.
GROUP INCLUSIVE TOUR (GIT)
Group travellers also buy from a wholesaler’s brochure or have a specially tailored itinerary
created to suit their needs.
INCENTIVE TRAVELLER
Many businesses reward performance by providing travel rewards to employees as
incentives. These travel arrangements usually require a tailor made product that is at the
top-end of the market.
CONVENTION TRAVELLER
Conventions involve the movement of large numbers of people and inbound operators can
develop pre and post convention tours.
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