Travel Distribution
What Is Travel
Distribution?
The travel distribution system is an evolving creature,
there are always new players, consolidations, new technologies, and devices. So
how do you as a tourism operator keep pace? The first step is to understand the
landscape and who are the initial players in online travel distribution.
However, large-scale distribution remains a challenge,
particularly for companies that sell multiple products, have contracts with
multiple suppliers and work with hundreds and thousands of agents.
How Does The Travel
Distribution System Work?
The travel distribution system has customarily been very
structured with clearly defined functions for a single role in the chain.
However, online technology and company mergers have transformed the tourism industry,
with an increasing amount of crossover in the roles and functions of different
sectors of the distribution system. Businesses are engaging a mix of
distribution partners to ensure the most impressive way of reaching their
target consumers.
As this distribution system continues to evolve, it is
essential to understand the structure of the companies that you work with and
their relationships with other organizations. With the growth of the internet,
many traditional travel distributors such as wholesalers and travel agents are
taking an online approach as well as providing their services from a retail
shop front. There has also been a development in online travel agencies (OTAs) that
operate solely in the online environment.
Both online and traditional distribution partners have the
opportunity to work with each other and directly with products and customers.
Therefore, it is vital to understand each partner’s role and how your product
can advantageous from their part in the distribution network.
Why Work With Travel
Distributors?
Travel distributors allow you to develop your customer base
far beyond the reach of your own limited marketing budget. They are essential
to the inbound tourism industry as overseas consumers still rely heavily on the advice of local travel experts when planning and booking their holidays,
particularly in long-haul and emerging markets.
Travel distributors can also offer market intelligence,
insights, and advice on a specific market. The travel distribution system covers
all the channels through which an international traveler can buy your product.
Other than approaching you directly, international travelers may book your
product.
IT Solutions for
Travel Distribution:
The Travel distribution system covers all the channels
through which travel is bought and sold. Distribution channels and consumer
purchasing behavior varies from market to market and one requires understanding
the structure of the distribution system specific to one’s target markets.
When considering how best to distribute your product to
international consumers, it is necessary to understand each channel and the
relationships between companies within the distribution channel. Suppliers and
wholesalers with their own inventory of flights, hotels and other products rely
heavily on b2b channels, as it’s difficult for them to physically serve end
customers in various markets.
The two main b2b channels for such companies are OTAs and
independent local agents. In this post, we will see the role of the local
agents in the distribution chain and how travel companies can use technology to
get the most out of distributors.
Key Entities In The
Travel Distribution:
- Suppliers such as hotels, airlines, car rental companies and other owners of inventory
- Aggregators/wholesalers (GDSs, Bedbanks, Consolidators etc)
- Inbound tour operators that work through a network of b2b agents
- Local travel agents/distributors that handle a small region and sell products on behalf of tour operators or supplier
- Online Travel Agencies, or OTAs – which sell through travel portals and internet booking engines (Expedia, Booking.com etc)
- Metasearch engines & Price Comparison sites.
How TripFro Simplifies
Distribution?
TripFro with its Distribution and ERP capabilities enables
large travel providers to aggregate content from multiple third-party
suppliers, combine it with their direct contracts, dynamically apply
pre-configured business rules and redistribute the inventory through a unified
API across all their marketing channels.
Our distribution engine is an SOA (Services Oriented
Architecture) based solution that allows companies to scale quickly while
providing them the flexibility to integrate their existing technology.
Within the travel technology market, there is the solution
providers that offer solutions to various types of travel businesses under one
roof, but also vendors that focus on a specific segment within the industry,
e.g., leisure travel agencies, or DMCs, or TMCs the best fit is for you.
Using our unique web-services-based architecture, they can
pull and push data from their existing systems, be it their CRM, Accounting
system, or their PMS/CRS through APIs. A centralized system makes it easy for
large companies to manage and control their distribution channels.
Another important thing to note here is that the extensive
supplier integration experience that travel technology companies possess allows
them to recommend the right suppliers in each region to get the best possible
inventory for their B2C and B2B customers. Plus, they have ready connections
for all major XML suppliers and can integrate their APIs into your website in a
matter of days.
Some Of The Top Benefits Provided By This Solution Are:
- Multi-channel Aggregation and Distribution
- Centralized management of own as well as third-party inventory
- Extensive markup and revenue management for b2b channels
- Complete co-branding for all your distributors (b2b2c)
- Multi-level hierarchy (your distributors can also create members under them and so forth)
- Superior Connectivity
- Support for local currencies and languages
- Incorporation into existing systems to protect investments
- Chosen Display of Inventory (according to region, supplier, channel etc)
- Increased Efficiency And Productivity through automation
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