MARKETING

INTERMEDIARIES

RYAN T. LOPEZ, LPT

CERTIFIED TOURISM PROFESSIONAL (CTP)
TOURISM PROMOTION SERVICES NC II
ACCREDITED TOUR GUIDE
TESDA TRAINER/ASSESSOR

Source:
Badilla, M., G., & Oreta, M., L., 2017, Tourism Promotion Services
 Disclaimer: This learning material is intended for educational purposes only
and any content such as information, lessons, topics, graphics, images, clip arts,
pictures, etc. are credited to their rightful authors and owners.

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 MARKETING INTERMEDIARIES
PRE-TEST
Directions: Determine whether the statement is true or false. Write T for true
and F for false in a separate sheet of paper.
_____1. Intermediaries provide information about marketing environment.
_____2. Intermediaries act as middle men between the supplier and consumer.
_____3. Tourism products and services can survive without intermediaries.
_____4. Websites are the most widely used kind of marketing intermediary.
_____5. Alliances is one kind of marketing intermediary.
_____6. Accessibility is not an issue for tourism products and services.
_____7. Reputation of the marketing intermediary is a key factor in choosing an
intermediary.
_____8. Hotel sales representatives facilitate hotel reservations and bookings.
_____9. Negotiation is not a task of intermediaries.
_____10. The presence of competition is bad for any business.

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 ACTIVITY #1
ACTIVITY: WHAT I KNOW!

Directions: In the given images below, state their functions to tourism

industry according to your own understanding. Work on it in a separate sheet
of paper.
1. TRAVEL AGENTS
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___________________________________
___________________________________
___________________________________

___________________________________
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___________________________________

2. LA UNION PROVINCIAL TOURISM OFFICE

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

3. ASSOCIATION OF SOUTHEAST ASIAN NATIONS

___________________________________

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

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 ACTIVITY #1.1
Activity: WHAT I KNOW VERSION 2!
Directions: Answer the question according to your own understanding. Work on it in
a separate sheet of paper. Rubric is provided below.
1. In your own understanding, why is there a need to be knowledgeable in different
hotel suppliers?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

2. As a sales agent, why do you need to have contacts of prospective buyers or

tourists?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

Rubrics/criteria for the essay.

EXCELLENT VERY GOOD GOOD TOTAL
3pts. 2 pts. 1 pt.
IDEA The idea is The idea The idea
exactly presented is clear presented is
(5 points) connected or but there are somewhat
correlates each some few words unclear but
other. The idea that devoid the tries to convey
is clear and elaboration but the explanation.
gives the precise deemed
explanation that understandable.
the activity is
looking for.
ORGANIZATION The idea is The idea is The idea is
(3points) presented in a presented in a presented in a
manner where manner that manner where
the thought is there were few most of the
organized from thoughts that are words used
its basic to unorganized were placed
complex form. making it vague unclear making
and unclear. the explanation
difficult to
understand.
GRAMMAR AND The idea is The idea is The idea is
LANGUAGE presented with presented with presented with
USED no grammatical few grammatical numerous
(2 points) errors and errors and has grammatical
language is used another errors and used
appropriately language. another
used. language.
GRAND TOTAL

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SCOPE

 What is a Marketing Intermediary

 Functions of a Marketing Intermediary
 Kinds of Marketing Intermediaries
 Factors to Consider in Choosing an Intermediary
 Importance of Access
Learning outcomes
• Define a marketing intermediary.
• Enumerate the functions of marketing intermediaries.
• Discuss the kinds of marketing intermediaries.
• Identify the factors to consider in choosing an intermediary.
• Elaborate on the importance of access.
Content:

LESSON 1
WHAT IS A MARKETING INTERMEDIARIES?
A marketing intermediary is a middle agent or middle man that links tourism
suppliers and potential customers. They serve to facilitate the flow of products and
services to make it convenient for the customer to avail himself/herself of it.
Functions of Marketing Intermediaries
1. Information – gathering and distributing marketing research and
intelligence information about the marketing environment.
2. Promotions – developing and spreading persuasive communications
about an offer.
3. Contact – finding and communicating with prospective buyers.
4. Matching – shaping and fitting the offer to the buyer’s needs.
5. Negotiation – agreeing on price and other terms of the offer so that
ownership and possession can be transferred.
6. Physical Distribution – transporting and storing of goods.
7. Financing – acquiring and using funds to cover for the cost of channel
work.
8. Risk Taking – assuming financial risks, such as the inability to sell
inventory at full margin.

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Kinds of Marketing Intermediaries
1. Travel Agents
- The most widely used marketing intermediary in the tourism industry
(though the Internet is now becoming vastly popular as well). Travel
agents offer a wide array of products and services from transportation
to accommodation and tour packages.
4 Distinct Functions:
 Distribution and sales network;
 Reservation and ticketing;
 Information provision and travel counselling; and
 Design of individual itineraries.
- Travel agents also provide travel management services to the
corporate accounts they handle who may need such services beyond
the four functions mentioned above.
- Travel agents locally known in the province of La Union are as follows:
A. Orange Tours and Travel – our partner for work immersion from 2017 – present.

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B. F.A.S.T. Travel and Tours – partner starting 2019 – present.

C. Small World Travel and Tours - our partner for work immersion from 2017 –
present.

D. Royal AGL Travel and Tours - partner starting 2019 – present.

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 SAMPLE PHILIPPINE TRAVEL AGENCIES

2. Tour Operators or Wholesalers

- Organization that offers packaged vacation tours to the general public
targeting the leisure market. The tour package includes
transportation and accommodation, as well as meals, ground
transportation, entertainment, and activities. Some tourist markets
find such products too stiff and inflexible.

https://philtoa.com/regular-tour-operator/ - website where 242 travel agencies

are member of PHILTOA

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 3. Tour Specialists
- Organizations that focus on one or more functions of the distribution
system. Examples of such tour specialists are educational tour
specialists who focus in servicing educational field trips for schools,
colleges, and universities.

(ADVENTURE TOUR GUIDES)

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 4. Hotel Sales Representatives
- HSR sell hotel rooms, function rooms, and other services in a
particular market area. Hotels have found it more efficient to hire
local hotel sales representative in profitable key cities instead of
sending its hotel sales executive to do personal selling in the area.
Hotel sales representative can carry different non – competing hotel
brands simultaneously. They are paid a straight commission aside
from their basic salary or compensation.

5. Government Tourist Association

National, regional, and local tourism agencies or offices are an
excellent way to get information to the market and gain bookings.
They usually market their locality to tourists and carry with them the
different establishments, properties, and attractions within their
territory. Local tourism offices on the provincial and municipal level
help promote local hotels, restaurants, and activities in the area.
Promotional videos and general information brochures are also made
by the National Tourism Organizations.

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 6. Consortia
- A consortium is a group of hospitality organization that is allied
for the mutual benefit of the members. It allows a property to be
independent in ownership and management while gaining advantages
of group marketing.
Ex: Logis de France – an association of 4,000 small hotels in France.
By aligning themselves with businesses of a similar nature, they are
able to consolidate their resources and gain from the association with
others.
- Establishments pay an initial joining fee and annual fees to enjoy the
benefits of the organization.

7. Concierges
- The hotel front office is usually the most frequently asked hotel
employees about the nearest restaurant, shopping mall, or attraction
nearby. As such, the concierge, bell staff, and front desk clerks
should be equipped with good recommendations and information
about tourist services available within the vicinity such as foreign
currency exchange, restaurants, transport services, shopping
facilities, etc. restaurants can invite such employees to sample their
meals and cultivate a relationship with them so as to generate
business.

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 8. Internet – Based System
- Online travel agencies, group buying sites, and company websites are
online platforms that companies can easily use to make their
products and services available to potential customers. Hotels list
themselves in Expedia and Agoda. Resorts, tour packages, and
restaurants are listed on Deal Grocer or MetroDeal.Zomato.com and
TripAdvisor which are popular websites listing hotels, restaurants,
and resorts with reviews from other tourist. Statictics have shown
that more than 50% of all travel reservations have been made using
the Internet and about 65% of same day hotel bookings are made
using a smartphone (www.statisticsbrain.com)
9. Alliances
- Strategic alliance is another form of marketing intermediary. When a
hotel, restaurant, or resort partners with a telephone company, credit
card company, or other relevant companies share customers and aim
for objectives that will benefit both companies. A certain credit card
company for instance partners with a five – star hotel wherein they
offer a 50% discount to room reservations paid using the credit card.
Another example is when passengers of Cebu Pacific get a certain
discount in specific hotels by just presenting their boarding pass.
Airline engages in strategic alliance such as Sky Team, Star Alliance,
and One World with the objective of greater access of the market.
Strategic alliance is a great way to gain greater distribution while
maintaining independence.

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 ACTIVITY #2
ACTIVITY: WE SUPPLY TOURIST NEEDS!
Directions: Communications is one of the functions of marketing intermediaries as
discussed from the lessons earlier. Now, assume that you have your own restaurant,
which marketing intermediary will you use and what are the factors or things you will
consider to persuade clients or tourists to avail your products? For instance, in terms
of communication skills, what are the elements that you will enhance as an owner in
your own travel agency? Replicate the table and work on it in a separate sheet of
paper.
MARKETING INTERMEDIARY WHY? FACTORS TO CONSIDER
I WILL USE…

TRAVEL AGENTS Travel Agents have a Communication Skills

complete contact of I should enhance this one to
guests or prospective create mutual
buyer. It would be understanding with both
easier for me to market prospective clients and
and promote my intermediaries.
restaurant to them.

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 ACTIVITY #3
ACTIVITY: PHILTOA ROCKS!
Directions: Access https://philtoa.com/regular-tour-operator/ and scan how this
organization is working as one group to promote tourism in the Philippines. Work on it
in a separate sheet of paper. Rubric is provided below.
WHAT ARE THEIR SERVICES? HOW CAN THESE SERVICES
AID/HELP TOURISM INDUSTRY IN
THE PHILIPPINES?

Rubrics/criteria for the essay.

EXCELLENT VERY GOOD GOOD TOTAL
3pts. 2 pts. 1 pt.
IDEA The idea is The idea The idea
exactly presented is clear presented is
(5 points) connected or but there are somewhat
correlates each some few words unclear but
other. The idea that devoid the tries to convey
is clear and elaboration but the explanation.
gives the precise deemed
explanation that understandable.
the activity is
looking for.
ORGANIZATION The idea is The idea is The idea is
(3points) presented in a presented in a presented in a
manner where manner that manner where
the thought is there were few most of the
organized from thoughts that are words used
its basic to unorganized were placed
complex form. making it vague unclear making
and unclear. the explanation
difficult to
understand.

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GRAMMAR AND The idea is The idea is The idea is
LANGUAGE presented with presented with presented with
USED no grammatical few grammatical numerous
(2 points) errors and errors and has grammatical
language is used another errors and used
appropriately language. another
used. language.
GRAND TOTAL

Factors to Consider in Choosing Marketing Intermediaries

1. Reputation – organization’s reputation. The company should have a
good reputation – one that is trustworthy, dependable, and professionally
– managed.
2. Efficiency – a distribution channel should offer fast, reliable, and
excellent service.
3. Cost – economic feasibility of the distribution channel should also be
considered so that the value they add to the company compensates for
the cost of paying for them.
4. Control – tourism suppliers should be able to exercise a certain degree
of control over its distribution channels. The channels should show
compliance on systems and guidelines set by suppliers for efficient
management and control of the distribution strategies.
Importance of Access
- Strategic location of the business depends on where one’s customers
are.
 Factors to consider in choosing a location:
Accessibility – souvenir shops should be near tourist attractions.
Restaurants should be near tourism accommodations and
transportation hubs such as airports, seaports, and bus terminals.
Type of Markets – choice of location should also consider the
psychographic and demographic characteristics of the market
within the area and its growth potential.
Availability of Competitors – competition is not necessarily bad.
If competing establishments are already present in the identified
location, it only means that there is already a market in that
specific area. This can often be observed when restaurants are
clustered around specific geographic areas.
Compatibility with the Business – the character of the location
should be compatible with the type of business to be set – up. A
wellness resort in the middle of an entertainment city with the
amusement parks and concert venues is out of place.

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 ACTIVITY #4
ACTIVITY: I AM ACCESSIBLE TO TOURISTS!
Directions: Analyze the illustration below and determine its impact to your
business and to tourists as well. Rubric is provided below. Work on it in a
separate sheet of paper.

Your
restaurant is Hotel is located
located here here

NATIONAL HIGHWAY/BUSY DISTRICT

THEME PARK
IS LOCATED HERE Shopping
center is here

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Rubrics/criteria for the analysis.
EXCELLENT VERY GOOD GOOD TOTAL
3pts. 2 pts. 1 pt.
IDEA The idea is The idea The idea
exactly presented is clear presented is
(5 points) connected or but there are somewhat
correlates each some few words unclear but
other. The idea that devoid the tries to convey
is clear and elaboration but the explanation.
gives the precise deemed
explanation that understandable.

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 the activity is
looking for.
ORGANIZATION The idea is The idea is The idea is
(3points) presented in a presented in a presented in a
manner where manner that manner where
the thought is there were few most of the
organized from thoughts that are words used
its basic to unorganized were placed
complex form. making it vague unclear making
and unclear. the explanation
difficult to
understand.
GRAMMAR AND The idea is The idea is The idea is
LANGUAGE presented with presented with presented with
USED no grammatical few grammatical numerous
(2 points) errors and errors and has grammatical
language is used another errors and used
appropriately language. another
used. language.
GRAND TOTAL

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 MARKETING INTERMEDIARIES
POST-TEST
Directions: Enumerate what are being asked. Work on it in a separate sheet of
paper.

1-5 Kinds of Marketing Intermediaries

6-8 Factors to Consider in Choosing a Marketing Intermediary
9-10 Factors to Consider when Choosing a Location

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References:
Badilla, M., G., & Oreta, M., L. 2017. Tourism Promotion Services First Edition.
Rex Printing Company, Inc., Quezon City, Philippines.
TOURISM PROMOTION SERVICES NC II TESDA Training Regulation
CLBM, TOURISM PROMOTION SERVICES NC II, TESDA

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