Tourism Distribution Systems

 

What is a Tourism Distribution System?

Tourism distribution refers to the methods by which tourism products, tours, activities, and services are made accessible to customers. Tourism distribution can take place either directly or indirectly. 

A tourism distribution channel is the set of parties and methods used to transport a tourism product from its supplier to the consumer. Direct channels are those over which your company has control, while indirect channels involve intermediaries such as travel brokers.

The goal of tourism distribution systems is to effectively connect suppliers of travel services, such as hotels, airlines, and car rental companies, with potential customers, allowing for the seamless booking and purchase of travel products. 

Typically, the tourism chain of distribution refers to the businesses and platforms that sell, distribute, and bundle tourism products. However, more components are involved throughout the distribution chain, such as suppliers, wholesalers, resellers, and customers. 

By integrating your business with existing distribution channels, you can connect with key industry stakeholders. It improves the efficiency of your marketing efforts, resulting in the expansion of your tourism and activity business.

 

How do tourism distribution systems work?

The modern tourism industry relies heavily on global distribution systems (GDS). They work as comprehensive reservation networks, linking travel agents, online booking platforms, and travel service providers. 

GDS platforms simplify the booking process, provide travelers with a wide range of options, ensure pricing and availability information accuracy, and enable travel service providers to expand their market reach. Their efficient and centralized platforms benefit travel professionals and customers, making them an essential tool in the travel and tourism industries.

While direct bookings may still account for a significant portion of the business, expanding into new distribution channels can help you maximize brand exposure, reduce risk, and ultimately increase bookings. Many distribution channels will have access to significantly larger marketing budgets or customer bases. It can lead to more exposure and better-quality bookings.

GDS is an online system known as a global distribution system that has been bridging the gap between tour operators and travel bookers around the globe by providing centralized services such as airline ticket bookings, car rentals, hotel rooms, and more. It delivers global data, rates, inventory, offers, and real-time availability of airlines, hotel rooms, car rentals, bus tickets, and other services to make the travel industry more informed and sophisticated.

Tourism distribution channels are the means by which tourism products and services are made available to consumers. Typically, tourism products are sold directly by the primary provider or through a network of intermediaries. If travel wholesalers are involved, this is known as indirect distribution. Consumers can obtain these products through a variety of channels, including traditional channels like travel agents, government entities like information centers, and even other tour and activity operators.

GDS distribution systems assist travel companies, agents, and their customers in accessing travel data by comparing rates, reservation options, access schedules, and inventories (hotels, airlines, car rentals, holidays, bus tickets, and railway tickets), as well as allowing customers to book tickets online.

 

Advantages Of Tourism Distribution Channels

 

Connectivity

 

Aligning your tour and activity business with the broader industry allows you to connect with key stakeholders at every stage of the tourism distribution chain. Strategic partnerships with resellers and tourism platforms give you access to a broader customer base. It gives you more opportunities to increase your sales.  

 

Efficiency

 

Direct marketing requires a significant investment of both time and money. Existing distribution channels typically have larger marketing budgets to attract new customers. As a supplier, you would typically only pay a fee if a booking was made through their channel, making your marketing and sales expenses predictable. It means you have more resources to invest in other aspects of your company, such as improving the customer experience. GDSs are a cost-effective way for travel agencies to access travel data, compare reservation options, and book travel.

 

Flexibility

 

With such a diverse range of potential partners, you have the freedom and flexibility to test and experiment with various methods of promoting your business. It's also more convenient for your customers to book your services through a network of trusted partners. It improves customer loyalty and satisfaction.

 

Transparency

 

Using existing distribution channels can improve transparency throughout the booking process for you and the end user. On the tour operator side, it allows you to gain a better understanding of your customers' behavior and adjust your marketing strategies accordingly. On the customer side, information like reviews on your profile allows them to make informed decisions before booking your services.

 

Increased Exposure

 

Tourism distribution systems help travel companies reach a wider audience, particularly for international travelers.

 

Why are tourism distribution systems important?

Tourism distribution channels are critical for ensuring that your travel products reach the intended audiences. Aligning your business with existing distribution channels enables you to connect with key industry stakeholders. Partnering with various tourism distribution channels allows you to make better use of your marketing budget and test different systems from different organizations, ultimately growing your tour and activity business.

A global distribution system (GDS) is a computer system that keeps track of availability from airlines, hotels, and car rentals. Retailers, including OTAs and B2C travel agents, have direct access to this inventory.

The GDS enables the instant exchange of information, room reservations, price and availability management, and other critical tourism functions. It sends up-to-date product, pricing, and availability information to travel agencies and online booking systems, automating the transaction and booking processes. GDS is frequently used for business travel bookings because it combines hotels, flights, and rental cars into a single interface, making it easier for users.

The tourism distribution industry has experienced significant transformations, requiring flexibility, adaptability, and a strong emphasis on customer satisfaction. Traditional distribution services and methods are no longer sufficient and require an omnichannel presence to ensure continuous operations. Tourism distribution must constantly improve its channels to keep up with the ever-changing market. 

A tourism distribution system is a system that enables partners or travel agents to book items from the travel agency or tour operator's system. The B2B online booking system allows partners to view all products and documents directly and make reservations through the system.

 

Types of Tourism Distribution Channels

 

There are several types of tourism distribution system channels, including direct and indirect classifications. Combining distribution channels allows your offerings to reach a larger customer base, increasing exposure and uptake.

 

Online Travel Agencies

 

Online travel agencies (OTAs) allow you to combine all aspects of tourism distribution into a single location. Customers can plan, book, and pay for their flights, accommodations, rental cars, and activities all at once through online travel agencies, which can be significantly less expensive than booking them individually. However, some customers may be put off by the possibility of overbooking and subsequent cancellations. Paying a commission to an OTA may also be unappealing to tour operators.

 

Wholesalers and Tour Operators

 

Tour operators help you reach new markets. Tour operators typically have a high volume of guests, allowing you to forecast sales and profits accurately. However, if the tour operator fails to bring in the desired customers, your company will suffer alongside the operator. This loss of control could be a turnoff for your business, especially if it is a small startup.

At the wholesaler stage of the distribution chain, the tour operator provides a business-to-business (B2B) service by selling the product to a travel agent, who then sells it to the consumer. They have a tour operator business plan that they use to provide the best options to other travel-related businesses.

 

Direct sales

 

Leveraging your internal communication channels is an excellent way to keep control of your marketing at a low cost. It can also result in higher profits because there are no overheads to pay an intermediary. However, this is balanced by the need to invest internally in advertising. Depending on your current reach, it may be difficult for your company to connect directly with customers.

Businesses can use platforms like websites, social media, and direct booking systems to take control of their marketing and sales efforts without relying on intermediaries.

 

Why Choose FlightsLogic a leading global tourism distribution system?

 

FlightsLogic specializes in distribution IT solutions and consulting, assisting clients in implementing a robust integration platform that streamlines data and processes across your travel distribution network. By seamlessly integrating your systems, we enable your company to synchronize operations, reduce manual labor, and increase overall business efficiency.

We strive to create robust and feature-rich software that will help you streamline your business operations, increase customer engagement, and improve overall customer satisfaction.

We provide customized travel and tourism distribution solutions for travel agencies, tour operators, hotels, rental companies, cruise lines, and airlines that aim to optimize distribution channels. This comprehensive system goes above and beyond the basic requirements, providing dependable customer data management, efficient invoice processing, and seamless integration with global travel platforms. We integrate your inventory across multiple channels using cutting-edge technologies and travel software distribution systems, addressing changing consumer behavior and ensuring success.

FlightsLogic has a vast travel inventory available through already-established API integrations with multiple leading suppliers, GDSs, and Channel Managers, allowing wholesalers to access online content and their own negotiated contracts. Travel wholesalers can expand their operations by distributing content to third-party travel companies through our innovative XML Out platform.

We offer comprehensive tourism distribution system solutions that cater to the diverse needs of travel businesses. As a reputable B2C and B2B travel portal development company, our web development team is consistently committed to creating industry-leading travel portals. We create travel portals that are simple to use, packed with useful features, and intended to make the browsing and booking process easier. 

We will assist you in integrating with global travel distribution systems to access data about hotel rooms, airline/train/bus seats, car rentals, and any other data provided by global travel organizations, travel agents, or online booking websites.

Our platform provides access to global travel inventory, including a diverse range of travel products (air, hotels, vacation packages, and other ancillary services) at competitive prices.

FlightsLogic provides travel sellers, such as OTAs, TMCs, GDSs, and wholesalers, with access to the world's leading accommodation provider inventory. Our travel distribution system helps you grow by expanding your offerings and providing travelers with more options, ranging from boutique hotels to all the world's leading hotel chains. 

We simplify travel distribution by providing a variety of connectivity and content solutions. Our travel distribution services will ensure smooth financial operations and accurate partner payments by incorporating robust accounting modules into your travel distribution platforms. Streamline commission processing by automating calculations and payouts to travel agents and other distribution partners, all on a secure and transparent platform.

Our travel distribution solutions enable you to connect with various Channel Manager Integrations, providing access to a vast network of online travel agencies (OTAs) and booking platforms. Distribute your inventory and rates seamlessly across multiple channels, increasing visibility and attracting bookings from diverse traveler segments. We create feature-rich travel software that makes traveling easier for your end users.

From travel planning to hotel reservations, we offer innovative travel solutions that can help your business create exceptional user experiences. We also enable seamless GDS integrations, allowing you to access the global travel marketplace used by travel agents and corporate bookers. Our tourism distribution system services empower you to integrate secure and diverse payment options into your online distribution channels. We provide travel technology services to suppliers, distributors, and technology providers to help them increase revenue and efficiency while remaining sustainable and enhancing guest experiences.

 

How has travel agency automation changed the tourism distribution system?

 

Travel agency automation has revolutionized the tourism distribution system by streamlining processes and increasing efficiency. Automation tools, which are integrated with CRS and GDS, manage booking procedures, reducing manual errors and processing times. It improves the overall customer experience and allows travel agencies to manage a larger volume of bookings more efficiently. Automated systems help create a more agile and responsive tourism distribution network.

 

Travel distributors encompass a diverse array of entities, including:

 

• Inbound Tour Operators (ITOs)

• Online Travel Agents (OTAs)

• Visitor Information Centers

• Local tour operators

• Retail Travel Agents

• Wholesalers