The Travel Distribution System

The diagrams below show the expansion from the traditional distribution channel of working with international visitors to the current model. The obvious change is the rise of the Online Travel Agents (OTAs).

Unless the customer comes to you direct, commission is paid at each stage of travel distribution. Pricing to accommodate commission is the first and most important tactic an operator wishing to work with international visitors needs to consider.

TRADITIONAL DISTRIBUTION SYSTEM:

Distribution diagram traditional web

CURRENT TRAVEL DISTRIBUTION:

Distrbution diagram new web

 

More Information:

The Tourism Export Council has produced a manual called “Planning for Inbound Success – A Guide to Working With New Zealand Inbound Tour Operators” as a resource for members and other industry tour operators to help understand how travel distribution works. To further discuss how you can access this resource, please email info@tourismexportcouncil.org.nz.