When selling a tourist product, first of all, it is necessary to make a decision on the method of marketing - through intermediaries (indirect marketing) or without their participation (direct marketing). In other words, a travel company should choose a distribution channel for itself.
A sales channel is “a collection of firms or individuals that take over or help transfer to someone else the ownership of a particular product or service on their way from the producer to the consumer2. The sales channel represents the "path of movement of goods from the manufacturer to the final consumer" Krylova GD, Sokolova MI Marketing. Theory and 86 situations: Textbook. manual for universities. M., 2009.S. 173 ..
Depending on the number of intermediaries, there are four types of traditional distribution channels, which are indicated by level. Under the level of the distribution channel understand "any intermediary on the path of the tourism product from the enterprise to the end consumer" Ibid. 174 ..
A tourism company can organize direct sales of its own tourism product to consumers, organize sales through travel agencies, or use a combination of several distribution channels:
- 1) Channel Zero (direct marketing channel) implies the presence of two participants: a tourist enterprise (its branches, representative offices) and a consumer. Organization of direct sales is a traditionally common form of marketing in tourism.
- 2) Single Channel involves the inclusion of an intermediary - a travel agency.
Travel agency - a separate company, not associated with the main company, specializing in the sale of a tourist product, usually in a certain territory on the basis of contractual obligations to the tour operator.
3) Two-level channel includes two intermediaries in the form of a travel agent and a travel agency, one of which acts as a retail and the other as a wholesaler.
In the Russian tourist market, there are two main forms of sales of a tourist product: through a tour operator and a travel agent.
Tour operator- This is a tourism company that develops tourist routes, ensures their functioning, organizes advertising, calculates in accordance with applicable standards and approves the prices of tours on these routes in the prescribed manner, sells tours to travel agents for the issuance and implementation of trips under their licenses.
Travel agent - This is a tourism intermediary company engaged in the sale of tours formed by the tour operator. A travel agent purchases tours from a tour operator and sells a tourist product to a buyer, or acts as an intermediary between a tourist and a tour operator for a commission provided by the tour operator. Moreover, the sale of certain tourist services to a tourist is not prohibited by law. For example, booking only hotel accommodation or only flight. However, compiling such services into a finished tour is already a tour operator activity.
Control over the work of travel agents - intermediaries is based on the assessment indicators of their sales activities:
- ? compliance with sales standards;
- ? maintaining inventory levels,
- ?? prompt delivery to the customer;
- ?? level of service in favor of the consumer.
A comparative assessment makes it possible to identify the best employees with their subsequent remuneration in the form of bonuses. To motivate employees, competitions can be held for the best forms of service, attracting new customers, etc. and awarding prizes. Summing up the results of the year, as well as competitions, often takes the form of a ceremony, public recognition of merit, and success.
To determine the optimal number of intermediaries, it is necessary to solve the problem of choosing a marketing strategy.
There are three types strategies:
- 1. Intensive marketing.
- 2. Exceptional sales.
- 3. Selective marketing.
The choice of a strategy option depends on the characteristics of the product, the volume and goals of sales, the company's market strategy, product positioning, competitors' practices, the degree of manufacturer’s control over the work of the intermediary.
Intensive sales - This is a marketing strategy for goods and services intended for a wide range of consumers. The task of intensive distribution depends on the number of trading enterprises and their location, taking into account the convenience of purchase.
Exceptional sales It is organized as a distribution of new goods and services, which are positioned as exclusive and expensive. To perform this task, the number of intermediaries is limited, giving them the exclusive right to sell the product.
Selective sales It involves optimizing the number of intermediaries in such a way as to ensure the required market coverage and at the same time monitor the work of the wholesaler or retailer. This strategy is not related to the positioning of goods as unique, prestigious, and sales organization is at an average level or slightly higher.
In the practice of tourism organizations, there are two areas of formation of distribution channels: external channels (foreign) and internal.
External sales channels - this is a certain number of foreign travel intermediary companies (tour operators, travel agents) who have accepted, according to the agreement, an obligation to sell tourist trips to that country in their country.
Internal sales channels - a system of branches and intermediary organizations through which various tourist services are sold on the territory of the country itself (regardless of whether they are sold to citizens of the country or to foreigners located in the country) The essence and features of marketing in tourism / article from the site “Tourlib .net ”, access mode: http://tourlib.net/books_tourism/kvartalnov_tourism13.htm.
Marketing strategy involves the integrated use of both internal and external distribution channels. But their role, depending on the nature of the services provided, is different. If a tourism organization specializes in the sale of comprehensive services, its sales apparatus should mainly focus on foreign intermediaries. You can open your own agencies and representative offices abroad, as the giants of the tourism business do, but this is associated with high foreign exchange costs. It is much more profitable for medium-sized companies to sell their services abroad to use tourism organizations that have taken a strong position in the local tourism market and have extensive experience in such work.
The formation of an external sales apparatus should be understood as the establishment on the basis of an agreement or contract of partnership with foreign travel agencies. Therefore, their study (assessment of business qualities and interest in cooperation with domestic firms) is the most important condition for the effective functioning of this apparatus. If the travel company produces individual travel services in large quantities, it is preferable to have a more developed domestic sales apparatus.
Making decisions in the field of marketing is associated with the construction of sales channels and the selection of intermediaries and the establishment of an optimal form of work with them.
According to the definition of the famous American marketer F. Kotler, the distribution channel is a set of independent organizations involved in the production process of a product or service that is accessible to individual consumers or a business user.
All persons involved in the exchange of goods are called participants in distribution channels. Under the sales channel refers to a set of methods for the sale of tourism products by a travel company.
Market entities involved in the construction of sales channels of a tourist enterprise:
Product manufacturer - accommodation facility, tour operator;
The final consumer is a tourist;
Independent commercial, wholesale organizations (when purchasing a tour product / service, they also acquire the right to own it);
Retail - Travel Agent.
Counterparties - enterprises and companies providing transport, excursion and other related services.
In the current competitive situation, enterprises are forming increasingly developed distribution systems.
Distribution channel (distribution) is a combination of independent organizations involved in the process of providing a product or service to end consumers or customer companies.
The task of the distribution system in the tourism sector is to provide potential consumers of travel services with information that will affect their right choice and then the necessary orders related to their travels.
The distribution system consists of all organizations that are intermediaries between manufacturers of travel services and their direct consumers. The importance of intermediaries and distribution channels in the tourism sector can be explained by several factors:
Intermediaries operate in the market, and they have more accurate information about demand, its causes and consumer preferences. To obtain such information, the tourist services manufacturer needs to spend both time and money;
Intermediaries can quickly determine how demand is being transformed depending on market changes;
The presence of intermediaries and their services makes it possible for the tourist services producer to concentrate on the field in which they specialize, to check and improve the quality of their work and services;
Intermediaries combine various types of services available from different manufacturers into a single package of services that is attractive to a potential customer and meets their needs, depending on market demand;
Intermediaries not only form a package of services, but also provide information on routes, types of services, giving the tourist the right to choose. An extensive network of intermediaries can assist in the promotion and sale of tourism products.
Possible participants in distribution channels
1. Sales department. Receiving and maintaining orders is the task of the sales department, and communication with customers is most often carried out through salespeople and sales representatives. The above tasks cover sales in the narrow sense of the word, while the company's management makes a fundamental decision, with the submission of a marketing service, about markets, customer groups and products. This rather historical form of net sales is currently losing its value in favor of the marketing department.
2. Management of the enterprise. The participation of members of the company's management in marketing activities is especially common in the sectors of the investment sector, in clothing production and in other areas where there are only a few large buyers. Often management supports other sales agencies, such as salespeople, especially if the customer is at a high level or the order value is unusually high.
3. Salesman. Salespeople are called employees of the company engaged in finding customers and working with them. Company instructions are mandatory for the traveling salesman. The scope of authority in which they have the right to represent the enterprise is regulated differently. Most often, their task is to establish contacts and receive orders.
4. Sales representative. Sales representatives are legally independent persons who conclude contracts and conduct business, as a rule, for several enterprises. They do not receive ownership of the goods and do not bear the risk associated with this (spoilage, changes in fashion, prices). The functions of sales representatives correspond in many respects to the functions of salespeople. The only difference is that the sales representative himself determines the order of his work.
5. Commission agent (consignee). If sales representatives work under a foreign name and use someone else's account, then the salesman works under his own name on the account of his guarantor (exporter). He is engaged in the purchase and sale of goods, the property rights to which he acquires only in individual cases at will.
6. Broker. The broker's activity is aimed at finding the possibility of concluding contracts. For the organization of constant sales, they now have no such significance (with the exception of the sale of certain types of raw materials on exchanges and auctions). The broker must represent the interests of both parties, between whom he is an intermediary.
7. Broker - an accredited (registered) intermediary agent (individual) when concluding transactions between buyers and sellers of goods, securities, currencies and other values \u200b\u200bon stock and commodity exchanges, currency markets. The broker concludes transactions, as a rule, on behalf of and at the expense of clients, and can also act on his own behalf, but at the expense of principals.
8. Dealer - an intermediary (legal or natural person) in transactions for the sale of goods, securities, currency. The dealer acts on his own behalf and at his own expense. Dealers can conclude transactions among themselves, with brokers, directly with customers. The dealer’s income is generated due to the difference between the purchase and sale prices of goods, securities, and currencies.
9. Distributor - an independent intermediary company that sells products to retailers and enterprises on the basis of bulk purchases from manufacturers. In addition, distributors can provide their customers with services such as product storage, delivery, and lending. Distributors are trying to establish long-term contacts with manufacturers and consumers.
10. Sales departments (branches) and manufacturers' offices are a type of wholesale trade organization used when manufacturers decide to take on the wholesale function, rather than carry it out through independent wholesalers.
11. Trading syndicate (concern). The separation of sales from their own enterprise and its transfer to the hands of a trade syndicate is found primarily in industries that produce homogeneous, difficult to differentiate products (coal, cement, steel, fertilizers, etc.).
Marketing functions of distribution channels:
1) providing information about the characteristics of the goods
2) assortment planning
3) determination of technology for booking travel services;
4) pricing;
5) distribution of products through channels (the ratio between wholesale and retail);
6) promotion promotion;
7) sales promotion (discounts, etc.).
There are two ways to build a sales system — direct sales channels — establishing direct links between seller and buyer, and indirect ones — working through the intermediary link.
Direct channel - sales are carried out along the chain from the manufacturer to the final consumer.
The advantages of this type of distribution are close contact with the buyer; the possibility of changing conditions.
Cons: the costs of organizing sales are borne by the manufacturer.
Direct implementation is facilitated by developed reservation systems. Through global reservation systems you can purchase plane tickets, book a hotel. Systems are focused on real-time order confirmation of services.
Connection criteria: low cost; service and functionality; prompt action.
Indirect distribution channels - based on the involvement of independent intermediaries for the sale of tourism products on a contract basis, that is, agreements on the terms of sale and price levels.
Distribution channels are characterized by length and width:
Channel length - this is the number of independent intermediaries sequentially involved in the movement of goods. This is beneficial for the consumer, since he has a choice when buying.
Channel Width - this is the number of independent participants at each level of product distribution. Channel width is a favorable condition for manufacturers, as the financial risk of sales is reduced.
The level of the distribution channel is any intermediary on the path of the tourist product distribution from the tourism enterprise to the final consumer.
Single-level sales channel: manufacturer - intermediary - end user.
The intermediary, as a rule, is a travel agent specializing in the sale of tourist products based on agreements with a tour company.
Two-level sales channel: manufacturer - wholesale link (tour operator) -dealer link (travel agent) - end user.
Three-level sales channel: manufacturer - representative in the region - wholesale link - end user.
The selection of sales channels and methods for managing them is central to the development of a marketing strategy for a tourism company. Sales channels are selected depending on the goals and objectives of the sales policy, sales volumes and speed of circulation.
The main characteristics of each implementation channel are: the degree of controllability of the channel, elasticity and the ability to adapt to customer needs, as well as the possibility of increasing the effectiveness of its use.
A sales strategy involves continuous review and monitoring of activities in order to accumulate information about the effectiveness of the existing sales network, increase this effectiveness, as well as develop regulatory measures in the field of sales policy.
The main components of the work of the distribution network to be considered: the scale of distribution, circulation speed, the cost of maintaining selected sales channels, the speed and quality of customer service, adherence to approved standards and service technologies, etc.
There are external and internal sales channels for tourism products. External sales channels are foreign travel agencies-intermediaries who have undertaken under the agreement obligations to sell in their country the tourism product or services of the company they are a broker. Tourism enterprises use this intermediary scheme, since the organization of branches abroad entails high foreign exchange costs, and the state policy of each country is specific. It is more convenient to work with foreign organizations that have good positions in the local market.
Internal sales channels are a system of branches, divisions, representative offices and intermediary organizations in their country.
Often, any company is faced with the problem of how to achieve great achievements from its intermediaries and with the problem of replacing those who do not meet the established requirements. To successfully solve these problems, management should monitor the characteristics of the economic activities of intermediaries and conduct a support program for those with the highest potential.
In today's competitive environment, it is not enough to rely only on personal marketing opportunities. Enterprises are required to form more and more developed distribution systems. Distribution channel (distribution) is a combination of independent organizations involved in the process of providing a product or service to end consumers or customer companies. Distribution networks are formed on the basis of contractual relations and unions.
The task of the distribution system in the tourism sector is to provide potential consumers of travel services with information that will affect their right choice and then the necessary orders related to their travels.
The distribution system consists of all organizations that are intermediaries between manufacturers of travel services and their direct consumers. The importance of intermediaries and distribution channels in the tourism sector can be explained by several factors:
Intermediaries operate in the market, and they have more accurate information about demand, its causes and consumer preferences. To obtain such information, the tourist services manufacturer needs to spend both time and money;
Intermediaries can quickly determine how demand is being transformed depending on market changes;
The presence of intermediaries and their services makes it possible for the tourist services producer to concentrate on the field in which they specialize, to check and improve the quality of their work and services;
Intermediaries combine various types of services available from different manufacturers into a single package of services that is attractive to a potential customer and meets their needs, depending on market demand;
Intermediaries not only form a package of services, but also provide information on routes, types of services, giving the tourist the right to choose. An extensive network of intermediaries can assist in the promotion and sale of tourism products.
Market intermediaries in the tourism industry include tour operators, representatives of hotel sales departments, state tourist unions, global distribution systems, and the Internet.
There are two ways of marketing - direct, this is the establishment of direct relations between the seller and the buyer, and indirect - this is through the intermediary link.
The selection of sales channels and methods for managing them is central to the development of a marketing strategy for a tourism company. Sales channels are selected depending on the goals and objectives of the sales policy, sales volumes and speed of circulation. The main characteristics of each implementation channel are: the degree of controllability of the channel, elasticity and the ability to adapt to customer needs, as well as the possibility of increasing the effectiveness of its use. A sales strategy involves continuous review and monitoring of activities in order to accumulate information about the effectiveness of the existing sales network, increase this effectiveness, as well as develop regulatory measures in the field of sales policy.
The main components of the work of the distribution network to be considered: the scale of distribution, circulation speed, the cost of maintaining selected sales channels, the speed and quality of customer service, adherence to approved standards and service technologies, etc.
In the tourism industry, there is a territorial separation between producer and customer. And therefore, communication with a potential consumer is often permissible only through special intermediary enterprises - tour operators and travel agents. Manufacturers in the field of tourism are industrial, service, and cultural organizations such as hotels, food processing plants, museums, art galleries, transport enterprises, sports facilities, etc.
In the field of tourism, intermediaries sell the services of several manufacturers. During the promotion of travel services are formed into the so-called tour product of the tour operator and through the channels of sale (travel agencies) are offered to the consumer. Sales of tourism products and services in tourism can also be carried out through distribution channels consisting of one or more intermediaries. The most revealing example can be hotels that sell their accommodation services through countless travel agencies, as well as serve tourists who have bypassed intermediaries in the form of travel agencies. Some manufacturers themselves exercise the role and functions of intermediaries and themselves offer their goods to the final consumer.
There are external and internal sales channels for tourism products. External sales channels are foreign travel agencies-intermediaries who have undertaken under the agreement obligations to sell in their country the tourism product or services of the company they are a broker. Tourism enterprises and organizations use this intermediary scheme, since the organization of branches abroad entails large foreign exchange costs, and the state policy of each country is specific. It is much more convenient to work with foreign organizations that have good positions in the local market.
18.1 Formation of a marketing strategy
18.2 Tourism product distribution channels
Formation of a sales strategy
Marketing requirements are not limited to the creation of a high-quality tourist product and the correct pricing of it. It is also necessary to appropriately bring this product to the final consumer - tourists and ensure its accessibility to the target market. To ensure the effective implementation of tourism services, a tourism company should conduct a set of activities that are reflected in the formation of a marketing marketing strategy.
It must be borne in mind that in modern conditions, sales are considered only as one of the many elements of marketing. One of the leading management theorists P. Drucker noted: “The purpose of marketing is to make marketing efforts unnecessary. His goal is to know and understand the customer so well that a product or service will definitely suit him and sell himself. ”
This does not mean that marketing and promotion efforts are losing their significance. Rather, it is about the fact that they are becoming part of a larger-scale marketing mix, i.e. selection of marketing tools that must be harmoniously linked with each other in order to achieve maximum impact on the market. Moreover, marketing practice convincingly indicates that sales should not be considered as a one-time event, but as an element of a firmly thought-out long-term strategy of the company.
The role of sales in marketing is due to the following circumstances:
in sales, the result of all marketing efforts of the enterprise is finally determined;
adapting the sales network to the needs of consumers, creating them the maximum convenience before, during and after the purchase of the product, the company has a much greater chance of winning the competition;
it is during the sale that the tastes and preferences of consumers are revealed,
The fact that the profit is ultimately realized in the field of sales explains the close attention that every tourist company pays to organizing and improving its sales operations.
The development and implementation of a sales strategy involves solving the following fundamental issues:
choice of distribution channels;
selection of intermediaries and determination of an acceptable form of work with them.
Speaking about the marketing strategy of a tourist enterprise, we must remember that it is one of the components of the marketing mix of the enterprise and, accordingly, cannot be realized in isolation from other marketing activities, cannot serve as an end in itself. At the same time, taking into account the specifics of the travel agency’s work, its task is not just to produce a product, but to sell it, bring it to the target consumer in the form that is most convenient for him, in the shortest possible time and with maximum economic effect for the enterprise itself. Sales strategy is one of the most important parts of the overall marketing of the enterprise. Like other elements of the marketing strategy, the marketing strategy should be closely linked to the general goals and objectives of the tourism company, consistent with the standards that apply within the company, and be aimed at maximizing customer satisfaction at the place, form and time of purchase of the tourist product.
The marketing strategy of a tourism company is developed on the basis of the general marketing strategy adopted by this company, taking into account all its other components (product, price, communications).
The process of developing a sales strategy goes through the following steps:
Determination of external and internal factors affecting the organization of the distribution network.
Setting goals for a marketing strategy.
The choice of distribution channels (distribution) and methods for managing them.
Analysis and control over the functioning of the sales network.
Tourism product sales channels
As already noted, the specifics of any tourism enterprise is not only to produce a tourism product, but (and often, above all) to sell it, thereby determining the final result of all marketing efforts of the enterprise. Speaking about the sale of a tourist product by one or another company, whether directly to the consumer through agency agreements, directly at the company’s office or outside it, when visiting the company directly or by phone, we are talking about distribution channels(distribution) of a tourist enterprise.
Under the distribution channel (distribution), as defined by F. Kotler, understand "The totality of firms or individuals that take over or help transfer to someone else the ownership of a particular product or service on their way from the manufacturer to the consumer." Given the specifics of the tourism business, where a tourism company, as a rule, does not produce specific services (accommodation, meals, etc.), we can say that any tourism company in itself is involved in the sales channel. However, this is not entirely true, since a tourist product does not consist of one service, but represents, as we have said, a range of services that it offers - both by third-party manufacturers and by the travel agency itself. thereforeunder the sales channel (distribution) in tourism must be understooda set of methods for organizing the sale of a tourism product by a tourism enterprise to a consumer.
Distribution channels are characterized by the number of component levels. Under the level of the distribution channel understand any intermediary on the path of the tourism product from the enterprise to the end consumer. The number of levels determines the length of the distribution channel.
Distribution channels with a large number of levels are used much less frequently, since they do not allow the tour operator to effectively manage and control the functioning of the distribution network.
A tourism company can organize direct sales of its own tourism product to consumers, organize sales through travel agencies, or use a combination of several distribution channels.
Organization of direct sales (a traditionally common form of marketing in tourism), or direct marketing channel implies the presence of two participants: a tourist enterprise (its branches, representative offices, representatives) and a consumer.
Single Channel involves the inclusion in the sales process of one intermediary, called in tourism travel agency. Travel agency - a separate company, not related to the main company, specializing in the sale of a tourist product, usually in a certain territory on the basis of contractual obligations to the tour operator.
Duplex Channel includes two intermediaries in the form of a travel agency and travel agent, one of which, by analogy with trade, acts as a wholesaler and the other as a retail seller.
Most sales channels in tourism are built on the principle of vertical marketing systems (Navy) Its use is primarily due to the specifics of the production of a tourist product. The tour operator does not produce a certain anonymized product that can be sold and consumed in any region, by any seller or at any time. Therefore, forming their own sales network or resorting to the services of third-party travel agencies, the tour operator seeks to maintain control over the distribution channels and ensure their manageability.
The sales policy of a tourist organization includes the management and control of the processes of promotion and sale of a tourist product, as well as related financial and information flows.
The development and implementation of a sales strategy involves solving the following fundamental issues:
1. The choice of distribution channels
2. The choice of intermediaries and determining an acceptable form of work with them
Distribution Channel - a set of organizations or individuals that take over or transfer to another entity the ownership of a competitive product or service on their way from the producer to the consumer.
Given the specifics of the tourism business, where the tourism company, as a rule, does not produce specific services (accommodation, food, etc.), we can say that the tourism company itself is involved in the sales channel. That is, the tour product does not consist of one service, but represents a complex of services offered by both third-party organizations and the travel agency itself.
Distribution channels can be characterized by the number of channel levels.
Distribution Channel Level - this is any intermediary who performs this or that work to approximate a product or service and ownership of it to the end customer.
Distribution channels can be characterized by the number of channel levels. The number of independent levels determines the length of the distribution channel. From the point of view of manufacturers, the more levels a distribution channel has, the less opportunities there are to control it and the more expensive the product (Fig.).
Existing distribution channels require the use of the following distribution methods:
1) direct sales (zero-level distribution channel) does not imply the existence of intermediaries; sales are carried out directly to consumers through direct contacts.
Direct sales channel options:
Orders by mail;
Telephone sales
Catalog sales;
Personal sales;
Own retail network;
Global computer backup systems, Internet.
For example: The Worldspan information system makes reservations for air transport (487 airlines), in hotels (39 thousand hotels and 216 hotel chains), travel agencies, theaters and other cultural enterprises, car rental companies (45 major rental companies). Currently, the system is used by more than 25 thousand travel agencies around the world.
2) indirect marketing (multilevel distribution channel) involves the sale of products through intermediaries. Allocate one-, two- and three-level channels.
For example: The tour operator "Natalie Tours" as a whole in the Russian Federation and the CIS countries works with more than 5,000 travel agencies where you can purchase their travel product.
Channel zero Channel first Channel first Channel second Channel third level level level level level
Drawing - Tourism Products Distribution Channels
Tour operator- An organization engaged in the assembly of tours and the formation of a range of services for tourists, promotion and implementation of tours. The tour operator develops tourist packages, provides the provision of tourist services, calculates the prices of tours, transfers the tours to travel agents for their subsequent sale to tourists, provides information support for the process of tour implementation.
Travel agency - The organization is an intermediary engaged in the sale of tours formed by the tour operator. The largest travel agents are united in the international association IATAN.
Travel Agent (Salesman) - a wholesale seller (individual), representing buyers or sellers on a relatively constant basis, which performs several specific functions and does not acquire ownership of the products (tours). It is engaged in sales for a certain fee, which depends on the number or amount of sold tours (tours).
In practice, the activities of tourism organizations emit two directions of formation of sales channels: external channels (foreign) and internal.
External sales channels - these are foreign travel agencies-intermediaries, who have undertaken under the contract obligations to sell in their country a tourist product or services of the enterprise, of which they are an intermediary. Tourism enterprises and organizations use this intermediary scheme, since the organization of branches abroad entails large foreign exchange costs, and the state policy of each country is specific. It is much more convenient to work with foreign organizations that have good positions in the local market.
Internal sales channels - This is a system of branches, branches, representative offices and intermediary organizations in their country.
Most sales channels in tourism are built on the principle of vertical marketing systems.
Vertical marketing system (IUD) - involves such relations between the participants of the distribution channel, when manufacturers and intermediaries act as a single system.
Drawing - Types of Vertical Marketing Systems
Within corporate vertical marketing system all successive stages of production and marketing are solely owned. Such a system is based on the use of a direct marketing channel and implies that the tour operator has a well-developed own sales network. This network includes branches, representative offices or representatives in various regions, contributing to a more rapid and efficient delivery of tourism products to the final consumer. The creation of such systems is only possible for very large companies, since their maintenance requires considerable effort and cost. For example: TEZ TOUR includes more than 20 international companies working to send and receive tourists.
Negotiated Vertical Marketing System implies the construction of sales channels based on contractual relations between independent from each other participants. This is the most common type of IUD in the domestic travel industry. It allows participants to use their advantages most effectively (to achieve good commercial results) while reducing the overall level of costs for maintaining sales channels.
Agent agreement - The most common form of contracted IUD. Relations under the agency agreement are built on the basis of a number of mutual obligations between the manufacturer of the tourist product (tour operator) and the agent. The central articles of the agreement are the sizes, conditions and terms of payment of commissions. They can be from 8 to 25%.
A special form of contractual relationship is franchising — a type of relationship between market entities when one side (franchisor) transfers to the other side (franchise) for a fee (royalties) the right to a certain type of business using the developed business model for its conduct .
Franchise systemsmost common in catering establishments (for example, Mc Donalds) or accommodation (for example, Holiday Inn), where they are called chains (chains).
Managed Navy - a system where one of the channel’s participants occupies a prevailing position. The coordination of a number of successive stages of product movement on its way to the consumer is carried out not on the basis of common ownership by one owner, but due to the size and power of one of its participants. For example: Thomas Cook and American Express.
Horizontal marketing system (HMS) - an agreement between several organizations of one level of a distribution channel on joint actions with the aim of using the new marketing opportunities that arise in this case. Sometimes in practice both vertical and horizontal marketing systems are used.
