Intermediaries

2. Firm or a person who acts as a mediator on a
link between parties to a business deal,
investment decision, negotiation etc.
Intermediaries usually specialize in specific
areas, and serve as a conduit for market and
other types of information. They are also
called the “middleman”.
In tourism for example intermediaries are people
or businesses that link the tour package with
the tourist…

3. To transform goods and services from a form
that consumers do not want into a product
that they do want.
Principal role is to bring buyers and sellers
together.
Inserted themselves between providers and
customers.

4. A tour operator typically combines tour and travel
components to provide a holiday. The most common
example of a tour operator’s package would include
a hotel, a transfer from the airport, a specific activity
and possibly a flight. Niche tour operators may
specialize in specific destinations, e.g. Italy, India, UK,
activities and experiences, e.g. skiing, music trips,
special interest tours, or a combination of both.
For profit, tour operators usually negotiate net rates
with suppliers and then add their own margins onto
the package on a percentage or per passenger
basis.

5. A travel agent is a private retailer that provides travel
related services to the public on behalf of suppliers such as
hotels, flights, car hire or package holidays (tour
operators).
A travel agency’s main function is to act as an agent
selling travel products and services on behalf of a supplier.
Consequently, unlike other retail businesses, they do not
keep any stock in hand. A package holiday or a ticket is
not purchased from a supplier unless a customer requests
that purchase. The holiday or ticket is supplied to them at
a discount and profit is therefore the difference between
the advertised price which the customer pays and the
discounted price at which it is supplied to the agent. This is
known as the commission.

7. The tourism channel of distribution is an
operating structure, system, or linkage of
various combinations of organizations
through which a producer of travel
products describes, sells, or confirms
travel arrangements to the buyer.

9. A TOURIST has seen footage of beautiful Western Australia on TV
and also heard about it from his friends. He decides to find out
more.
A tourist visits his local RETAIL TRAVEL AGENT to enquire about
Western Australia, and ends up booking an eight-week
adventure including accommodation.
A travel agent plans a comprehensive West Australian itinerary
through the brochure of a TOUR WHOLESALER and then
proceeds to book all tour operations through them.
The tour wholesaler contacts the INBOUND TOUR OPERATOR (ITO)
to book each individual element of the tour itinerary, such as
accommodation and tours.
The inbound tour operator contacts individual LOCAL TOUR
OPERATORS to book accommodation and tours directly

12. The tourism channel of distribution is
an operating structure, system, or
linkage of various combinations of
organizations through which a
producer of travel products
describes, sells, or confirms travel
arrangements to the buyer.