Month: November 2024

Playing the game ‘Tour Operator’ taught me that every tourist is unique, with diverse needs and preferences requiring tailored travel arrangements. For instance, some may prefer flying business class, while others prioritise specific activities, such as cultural experiences, during their holiday. Additionally, accommodation preferences vary, ranging from standard rooms to VIP suites, emphasising the importance of customising each travel package to suit individual requirements.

The insights gained from playing ‘Tour Operator’ also highlight the vital role of the Chain of Distribution in meeting diverse customer needs. Tour operators act as intermediaries, collaborating with airlines, hotels, and local activity providers to ensure that all aspects of a tourist’s holiday are seamlessly organised. This coordination ensures that individual preferences, such as specific travel classes, cultural experiences, or unique accommodation types, are effectively delivered through a well-structured distribution network.

References 

Carl et al. (2023) Tour Operator, Zatu Games. Available at: https://www.board-game.co.uk/product/tour-operator/ (Accessed: 19 November 2024). 

According to Investopedia & Tourism Teacher, (2023 & 2024), The Chain of Distribution, is the mechanism that moves products or services from the manufacturer to the end user. Depending on the product type, these chain stages can vary, but generally speaking, they consist of the the following:

Producer

The person who starts the production process, such as the product’s manufacturer or originator. Before the products are into the distribution chain, the manufacturer creates and supplies them.

Wholesaler 

Wholesalers frequently buy goods in bulk from manufacturers and resell them to retailers in smaller amounts. By serving as middlemen, they provide retailers with bulk rates and lessen the effort for producers. 

Retailer

Retailers purchase goods from distributors (or occasionally directly from manufacturers) and resell them to final customers.  They may be supermarkets, internet merchants, or smaller shops that provide goods in amounts that are handy for the consumer. 

Consumer

The final phase of the supply chain, during which the final consumer buys the product for their own usage. All of the chain’s earlier phases ultimately aim to reach the consumer.

Additional procedures, such as agents or brokers, may occasionally be necessary to help connect wholesalers and retailers. Additionally, by avoiding some conventional steps in the process, e-commerce platforms have become essential in modern distribution systems, offering direct contact between suppliers and consumers. 

In my opinion, In the tourism industry’s chain of distribution, the wholesaler or tour operator section is not always necessary. Sometimes, travelers can book directly with service providers (like airlines, hotels, or attractions) instead of going through an intermediary.

In these cases, the distribution chain is more direct, and the steps can skip the wholesaler, allowing consumers to book directly with travel agents or online, which is increasingly common with online travel agencies and direct bookings through provider websites.

References

Investopedia (2023) Distribution Channel. Available at: https://www.investopedia.com/terms/d/distribution-channel.asp (Accessed: 13 November 2024).

Tourism Teacher (2024) The Chain of Distribution. Available at: https://tourismteacher.com/the-chain-of-distribution/ (Accessed: 13 November 2024).