Drama – The travel and tourism industry | e-Consult
The travel and tourism industry (1 questions)
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The chain of distribution for a package holiday involves a series of transactions between different organisations, ultimately reaching the consumer. Here's a breakdown:
| Stage | Player | Description |
| Supplier | Airline | Provides flight services. |
| Hotel | Provides accommodation. | |
| Transfer Company | Provides transport between the airport and the hotel. | |
| Distributor | Travel Agent/OTA | Bundles the flight, accommodation, and transfer services into a package. Sells the package to the consumer. |
| Consumer | Holidaymaker | Purchases the package holiday from the travel agent/OTA. |
Sequence of Transactions:
- The airline, hotel, and transfer company agree on prices and terms of service.
- The travel agent/OTA contracts with these suppliers to secure the package holiday components.
- The travel agent/OTA markets and sells the package holiday to the consumer.
- The consumer pays for the package holiday.
- The travel agent/OTA collects the payment and remits it to the suppliers.
- The suppliers provide the services as agreed.
The efficiency of this chain of distribution is crucial for the profitability of all involved. Technological advancements, particularly the rise of OTAs, have significantly altered this chain, often bypassing traditional travel agents and offering consumers more direct access to suppliers.