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Marketing Intermediaries in Tourism

Marketing intermediaries are independent companies that facilitate the movement of goods and services from producers to consumers, particularly in the tourism industry. They perform various functions such as information gathering, promotions, and physical distribution, and include travel agents, travel operators, and online systems among others. Choosing the right intermediaries involves considering factors like reputation, efficiency, cost, and control, while access to potential customers is crucial for business success.

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0% found this document useful (0 votes)
15 views3 pages

Marketing Intermediaries in Tourism

Marketing intermediaries are independent companies that facilitate the movement of goods and services from producers to consumers, particularly in the tourism industry. They perform various functions such as information gathering, promotions, and physical distribution, and include travel agents, travel operators, and online systems among others. Choosing the right intermediaries involves considering factors like reputation, efficiency, cost, and control, while access to potential customers is crucial for business success.

Uploaded by

mauriz merin
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© All Rights Reserved
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TOURISM PROMOTION SERVICES 2

TOPIC: MARKETING INTERMEDIARIES

What is a Marketing Intermediary?

Marketing intermediaries, or mediators, are independent companies facilitating the movement of goods
and services from manufacturers to end-users. They use wholesalers, agents, retailers, physical
distribution companies, marketing services agencies, financial institutions, etc., to bridge the gap
between producers and consumers.

In Tourism Industry INTERMEDIARY is am middle agent that links tourism suppliers and potential
customers. They serve to facilitate the flow of the products and services to make the convenient for the
costumer to avail himself/herself of it.

FUNCTIONS OF MARKETING INTERMEDIARIES

1. INFORMATION- gathering and distributing marketing research and intelligence information


about the marketing environment.
2. PROMOTIONS- developing and spreading persuasive communications about an offer.
3. CONTACT- finding and communicating woith prospective buyers.
4. MATCHING-shaping and fitting the offer of the buyers need.
5. NEGOTIATION- agreeing on price and other terms of the offer so that ownership and possession
can be transferred.
6. PHYSICAL DISTRIBUTION- transporting and sorting of goods.
7. FINANCING- acquiring and using funds to cover for the cost of channel work.
8. RISK TAKING- assuming financial risks, such as the inability to sell inventory at full margin.

KINDS OF MARKETING INTERMEDIARIES

1. TRAVEL AGENTS
These are the most widely used marketing intermediary in the tourism industry (though the
Internet is now becoming vastly popular as well). Travel agents offer wide array of products and
services from transportations to accommodations and tour packages. Hudson(2008) claims that
travel agents are able to perform four (4) distinct functions as:
a. Distribution and sales network
b. Reservation and ticketing
c. Information and provision and travel counseling and;
d. Design of individual itineraries.

Travel agents also provide travel management services to corporate accounts they handle who
may need such services beyond the four functions mentioned above.

2. TRAVEL OPERATORS OR WHOLESALERS

These organizations that offer packaged vacation tours to general public targeting the leisure
market. The tour package includes transportation and accommodation, as well as meals, ground
transportation, entertainment, and activities. Some tourist markets find such products too stiff
and inflexible.

3. TOUR SPECIALIST
Tour specialist are organizations that focus on one or more functions of the distribution system.
Examples of such tour specialists are educational tour specialists who focus in servicing
educational field trips for schools, colleges, and universities.

4. HOTEL SALES REPRESENTATIVES


Hotel sales representatives sell hotels rooms, function rooms, and other services in a particular
market area. Hotels have found it more more efficient to hire local hotel sales representative in
profitable key cities instead of sending its hotel sales executives to do personal selling in the
area. Hotel sales representatives can carry different non-competing hotel brands
simultaeneously. They are paid a straight commission fee aside from their salary or
compensation.
5. GOVERNMENT TOURIST ASSOCAITIONS
National, regional, and local tourism agencies or officers are an excellent way to get information
to the market gain bookings. They usually market their locality to tourists and carry with them
different establishements,properties and attractions within their teritory.
6. CONSORTIA
A consortium is a group of hospitality organizations that is allied for the mutual benefit of the
members. Its allows a property to be independent in ownership and management while gaining
advantages of group marketing.
7. CONCIERGES
The hotel front office usually the most frequently asked hotel employees about the nearest
restaurant, shopping mall, or attraction nearby. AS such, the concierge, bell staff, and front desk
clerks should be equipped with good recommendations and information about the tourist
services.
8. INTERNET-BASED SYTEMS
Online travel agencies, group buying sites, and company websites are online platforms that
companies can easily use to make their product and services available to potential costumers.
Hotels list themselves in Expedia & Agoda. Resorts, tour packages, and restaurants are listed in
Deal Grocer or MetroDeal. [Link] and TripAdvisor which are popular websites listing
hotels, restaurants and resorts.

9. ALLIANCES
Strategic alliance is another form of marketing intermediary. When a hotel, restaurant, or a
resort partners with a telephone company, credit card company, or other relevant companies
share costumers and aim objectives that will benefit both companies A certain credit card
company for instance partners a five star hotel wherein they offer a 50% discount room
reservation using the credit card.

FACTORS TO CONSIDER IN CHOOSING MARKETING INTERMEDIARIES


In choosing intermediaries, tourism suppliers must consider the following factors.
1. REPUTATION- a major consideration in choosing a distribution channel is the reputation of
the organization. The company should have a good reputation one that has trustworthy,
dependable, and professionally-managed.
2. EFFICEIENCY- A distribution channel should offer fast, reliable and excellent service.
3. COST- Economic feasibility of the distribution channel should also be considered so that the
value they add to the company compensates for the cost of paying for them.
4. CONTROL- Tourism supplier should be able to exercise a certain degree

IMPORTANCE OF ACCESS

Access is a key ingredient to the success of any business. Products and services have to be
accessible to its potential costumers. Strategic location of the business depends on where one’s
costumers are. Are potential customers near where you plan to establish your business? Should
you set-up online purchases because your customers are always online?

Some factors to consider in choosing a location include:


• Accessibility- souvenir shops should be near tourist attractions. Restaurants
should be near at tourist accommodations and transportation hubs such as
airport, seaports and bus terminals.
• Type of Market- Choice of location should also consider the psychographic and
demographic characteristics of the market within the area and its growth
potential.
• Availability of Competitors- competition is nor bad necessarily bad. If
competing establishments are already present in the identified location, it only
means that there are alreadya , market in specific area.
• Compatibility with the Business- the character of the location should be
compatible with the type of business to be set up. A wellness resort in the
middle of an enterntainment city with amusement parks and concert venues is
out of place.

Common questions

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Travel agents remain effective due to their offering of personalized services such as travel counseling and itinerary design, which cater to specific customer needs . They provide a trusted human touch and can handle complex travel arrangements efficiently. However, internet-based systems offer convenience and accessibility, allowing users to easily compare prices and book services online . Technological advancements have increased the popularity of online platforms, making them a vital tool for modern travelers. The effectiveness of either channel largely depends on the customer's preference for personal service versus convenience and speed.

The strategic location of a tourism business plays a crucial role in its success by ensuring that products and services are accessible to potential customers. Factors to consider when choosing a location include accessibility, proximity to tourist attractions, compatibility with the business type, market type, and presence of competitors . For instance, a restaurant should ideally be near tourist accommodations and transportation hubs, while considerations about the psychographic and demographic characteristics of the local market can inform location selection . Properly selected locations can drive traffic and improve sales by ensuring convenience and visibility.

Government tourist associations support tourism promotion and development by marketing their regions to attract tourists, providing information about local establishments, properties, and attractions, and facilitating bookings . They play a vital role in creating awareness and establishing a region's tourism brand. Additionally, these associations coordinate with various stakeholders to enhance infrastructure and service offerings, thus boosting the area's overall appeal to tourists. Their influence extends to policy-making and strategic planning to ensure sustainable tourism growth.

Forming a consortium in the hospitality industry offers several benefits, including collaborative marketing efforts, shared resources, and enhanced bargaining power, all contributing to mutual member advantage . Members retain ownership independence while benefiting from group marketing strategies that extend their market reach. However, challenges include potential conflicts of interest among members, management complexity, and the need to ensure that the consortium remains aligned with each member's individual goals while meeting collective objectives. Carefully structured agreements and strong governance are crucial to successfully managing these challenges.

Concierges act as informal marketing intermediaries in hotels by providing guests with recommendations and information about nearby attractions, restaurants, and services . Their insider knowledge and personalized assistance help guests make informed decisions and enhance their overall experience. Concierges facilitate service accessibility and satisfaction, often leading to positive reviews and return visits. They effectively bridge the gap between the hotel and external tourism offerings, and their influence on the guest experience can be significant in garnering customer loyalty and improving hotel ratings.

Online travel agencies (OTAs) have drastically reshaped the landscape for traditional tourism marketing intermediaries by providing a platform where consumers can easily compare and book services online. This has led to heightened competition for traditional agents such as travel agents, who now compete against the convenience, speed, and often lower cost offerings of OTAs . OTAs allow customer self-service and direct access to suppliers, often bypassing traditional intermediaries. This shift demands that traditional intermediaries differentiate themselves by providing added value, such as personalized services and expert advice, to maintain relevance in the market.

Alliances in the tourism industry act as marketing intermediaries by fostering partnerships between different corporations such as hotels, credit card companies, and telecoms, to provide mutual benefits and enhance customer experience . Through such alliances, companies can offer joint promotions or discounts, like a credit card offering hotel discounts to their users, thus creating a more attractive value proposition. These partnerships improve customer experience by providing more comprehensive services and seamless integration of offerings, leading to increased customer satisfaction and loyalty.

Marketing intermediaries in the tourism industry act as middle agents, linking tourism suppliers and potential customers. They facilitate the flow of products and services, making them more accessible and convenient for customers. Key functions include information gathering, promotions, contact finding, matching offers to buyers' needs, negotiation, physical distribution, financing, and risk-taking . For tourism suppliers, intermediaries help widen reach and enhance efficiency, while customers benefit from easier access to comprehensive services such as travel packages and accommodations .

Tour specialists focus on specific aspects of the distribution system, providing targeted services that cater to particular market needs. For instance, educational tour specialists organize trips for educational purposes, serving schools, colleges, and universities by offering tailored experiences that align with educational goals . By focusing on unique functions and niche markets, tour specialists can provide specialized knowledge and customized services, thus leveraging their expertise to effectively meet the specific demands of their target audience.

When choosing marketing intermediaries in tourism, factors such as reputation, efficiency, cost, and control are critical. A reputable intermediary can build trust and reliability, enhancing the supplier's credibility. Efficiency ensures fast and reliable service, while cost considerations involve evaluating whether the intermediary's value justifies the expenses . Control is also significant, as it determines the degree of influence a tourism supplier can exercise over the intermediaries to maintain brand integrity and service standards. Balancing these factors helps in selecting the best intermediaries that align with the supplier's business objectives.

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