Company Distribution Channel

 Distribution channel definition.

Aa distribution channel is the flow that a good or service follow from the
production or manufacturing to the final consumer/buyer. Distribution channels
vary but typically include a produce, a wholesaler, a retailer, and the end
buyer/consumer. A distribution channel can also provide a sense of how money
flows back from the buyers to the producer or original point of sale.

 The link between producers and the end consumer is normally

intermediaries, such as wholesalers, retailers, or brokers. The
intermediaries can be natural persons or businesses.

 Distribution channel can be either direct or indirect. The indirect channels

can be divided up into different levels – one-channel, two-channel and
three-channel.

 The importance of distribution channel to hotel industry

1. Increasing brand awareness

Promotion helps in creating brand awareness. With the help of various
media like the television, billboard, radio, social media or journal, you can
spread across information about your brand and company, which helps
people to find out more about you and look into your products and make
purchases.

2. Segment Identification
If your promotional and marketing strategy is loosely structured, it might
not be successful in targeting the “right” audiences. Having a full-proof
and well-thought-out promotional strategy and marketing plan can help
you identify different segment of consumers in the market and offer
suitable solutions for your clients.

3. Increasing Customer Traffic

Promotion also helps in increasing customer traffic. The more you
promote your brand, the more will the customers know about you and
your company and the more will they be interested in your products.
Promotion can be done even by giving out free samples which work
wonders for customers. They try your product and ultimately, come to
you and make purchases.
 Types of Channel Member

There are 2 types of channel members which is:

1) Major types of channel members

o Direct booking – customer who reserve your tours or activities

directly through you.
o Online travel agencies (OTA) – a company that mediates various
travel services online.
o Global distribution system (GDS) – network operated by a
company that enable automated transactions between third
parties and booking agents in order to provision travel related
services to the end consumers.
o Travel agents – a person engaged in selling arranging
transportation, accommodations, tours or trips for travelers.
o Tour wholesaler – an individual or company that sells tour
packages and tour product to travel agents.

2) Other types of channel members

o Tour brokers – a person who operates tour company is a broker.

Also known as a middleman.
o Motivational houses – provide incentive travel or rewards for
employees or distributors.
o Junket reps – serve the casino industry as intermediaries for
premium players.
o Hotel representatives – a company serving the travel agent
channel that serves as the booking contact for a hotel or a group
of hotels.
o National, state, and local tourist agencies – agencies disseminate
information about tourism products and services to travelers.
o Consortia and reservation systems – system that provide a
central reservation system for hotels.
o Concierges – source of business for local hospitality products and
travel such as restaurant and tourist attractions.