Package Tour Distribution Channels of Major Japanese, Chinese, and South Korean Travel Agents

Abstract

ABSTRACT This study examines how overseas package tours are designed in China, South Korea, and Japan. It also examines how these tours are arranged between the three countries. The results of in-depth interviews and participant observation showed that the method of creating tours was almost the same across those three countries. However, there were differences in the method of operating tours. In terms of tours from China, Chinese wholesalers prefer other travel agencies as land operators instead of their own foreign subsidiaries; for Japan, they prefer to utilize their foreign subsidiaries; and for South Korea, the wholesaler considers both their subsidiaries and land operators for operating package tours. The concept of “operating power” explains the unique operation of these travel companies. The study concludes that the distribution channels of various package tours are strategically created by wholesalers according to the combination of markets and destinations. It contributes theoretical implications to the study of tourism distribution channels by focusing on regions that have not been included in previous studies. Additionally, it proposes a framework for the process of creating package tours and constructs a concept to explain the diverse ways in which package tours are operated. In terms of practical implications for travel agents, the study provides insights into various tourism distribution channels across different situations.