Abstract
This article gives an overview of the changes and developments in the travel industry and the way travel intermediaries like travel agents are responding to them. These changes include the deregulation of airlines and the advent of global distribution systems, the pressure from airlines for lower distribution costs, rapid and fundamental changes in technology and consumer preferences. The responses by travel agents include rapid integration and consolidation within the industry, the use of technology to streamline operations and expand market reach, and the review of traditional revenue models to make way for new approaches to revenue generation. In conclusion, some future scenarios for both leisure and corporate travel distribution are outlined.
Highlights
The worldwide tourism distribution system is experiencing major transformation. The beginning of this transformation phase can probably be traced to the deregulation of airlines and the advent of global distribution systems, which initiated a period of greater accessibility and availability of information to travel intermediaries, with concomitant benefits to the travel consumer
Rapid and fundamental changes in technology have enabled consumers to deal directly with travel suppliers in an increasingly simple way, and this has proved a further impetus for change in travel distribution
The flexibility of fares on the JohannesburglLondon route offered by British Airways, South African Airways (SAA) and Vrrgin Atlantic is an example of the wider range ofoptions available to the consumer
Summary
The worldwide tourism distribution system is experiencing major transformation The beginning of this transformation phase can probably be traced to the deregulation of airlines and the advent of global distribution systems, which initiated a period of greater accessibility and availability of information to travel intermediaries, with concomitant benefits to the travel consumer. Rapid and fundamental changes in technology have enabled consumers to deal directly with travel suppliers in an increasingly simple way, and this has proved a further impetus for change in travel distribution. The number of channel levels may vary from simple, direct marketing where the supplier sells directly to the consumer, called direct distribution, to complex distribution systems involving several layers of channel members such as retail travel agents, tour wholesalers/operators and speciality intermediaries, called indirect distribution.
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