tourism distribution channel

What are the main types of tourism distribution channels?

The travel and tourism chain of distribution

Variations in the chain of distribution, what is a tourism distribution channel.

For the owners and employees of travel businesses, it’s important to have a good understanding of the distribution channels available to you. The digital revolution means there is a wide choice of online channels today. But do not forget your strategic partnerships and offline channels too. To avoid spending unnecessary time and money, you need to know which channels do the best job of getting your travel products in front of your target audience.

But before we look at the various sales and marketing avenues at your disposal, we need to focus on the chain of distribution first. In order to maximize opportunities and efficiencies, it’s essential to understand the chain of distribution and where your company is positioned within the chain.

Generally speaking, there are four key stages within the chain of distribution . These are: principals, wholesalers & aggregators, retailers, and consumers (see chart 1).

Chart 1: The Travel and Tourism Chain of Distribution

The principals are the separate components of a travel product. For example, a leisure traveler buys a three-night stay in Paris that includes flights, accommodation, entrance to the Louvre and the Eiffel Tower, with other ancillary services such as travel insurance and foreign exchange thrown in too. In this case, each of the principals could have been sold separately. Instead, they were bundled together by a travel business and sold as a mini-break promotion.

Wholesalers & aggregators

Tour operators take various components of the travel experience and create a travel product which is then traditionally sold by a travel agent.

At the wholesaler stage in the distribution chain, the tour operator is providing a business-to-business (B2B) service by selling the product to a travel agent who then sells it to the consumer (a B2C service). They have their tour operator business plan which they follow to provide the best options to other travel-related businesses.

A global distribution system (GDS) is a computer system that holds records of availability from airlines, hotels, and car hire. Retailers such as OTAs and B2C travel agents are able to directly access this inventory.

As the oldest type of distributor in the travel industry, GDS are predominantly involved in the sale of air tickets rather than accommodation.

Destination Management Companies (DMCs) or Destination Management Organizations (DMOs) often contract travel products and sell on packages and itineraries relevant to their destination to a tour operator.

A bed bank is a B2B company that buys rooms from hotel groups and other accommodation providers in bulk at discounted and fixed prices for specific dates.

Some bed banks might also sell ancillary services such as tickets to visitor attractions or car hire.

Bed banks are middlemen, or intermediaries, between hotel companies and retailers. They might sell on their discounted bulk accommodation products to airlines, other bed banks, travel agents, OTAs or tour operators (see Chart 2). Chart 2: Bed Bank Distribution Chain

Retailers and consumers

Retailers are the organizations that sell the travel products directly to the consumer. These include traditional travel agents with a physical store in the high street such as TUI, Hays, and Cooperative Travel in the UK, for example. Other travel retailers are found online and include OTAs, B2C tour operators, and travel agents that specialize in business travel. Consumers are the end-users who buy the travel products or services. The main types of consumers are business travelers, leisure tourists (either domestic or international) and people who are visiting friends or relatives.

Chart 1 identifies the four key stages in the chain of distribution, although this process can vary and be more direct or indirect. For instance, a leisure traveler booking accommodation directly from a hotel website means there is only one stage in the chain. A bed bank that sells to another bed bank, results in five stages in the chain.

The wholesaler and retailer stages may be carried out by the same company . This is known as vertical integration , which happens when two or more organizations at different stages in the supply chain merge.

It is fairly common for tour operators and travel agents to buy each other. After all, the role of tour operators in sustainable tourism is quite significant. When mergers occur at the same level in the distribution chain, this is called horizontal integration . The original brand names are often retained, so consumers may not be aware that booking.com, KAYAK, Agoda and priceline, for instance, are all owned by one company: Booking Holdings. Digitalization and corporate mergers have resulted in plenty of crossover and consolidation in the travel and tourism distribution system.

As a B2C travel agent or tour operator, distribution channels represent the various ways to sell or market your product. You need to have a multi-channel presence to maximize your sales opportunities and brand presence, and to reduce your risk. There is specialized tour operator software that can help you manage this workload more efficiently. At the same time, depending on the size of your business and the resources you have available, it could be an error to spread yourself too thinly over too many channels.

Choosing the best distribution channels for your business needs to be done with care and attention.

Generally speaking, we can divide distribution into three main categories: online channels, strategic partnerships and offline channels (see Chart 3).

Chart 3 Travel & Tourism Distribution Channels

Online channels

As a tour operator or travel agent, the overriding benefit of optimizing your own website is that you pay no commission on direct bookings and have full control over how consumers interact with your brand.

Being listed on Google My Business is essential today. Google is the default destination for most consumers to gather information of any kind. Your listing will come up in Google searches and on Google Maps and registering is free.

Online travel marketplaces like Bookmundi and Viator have large audiences. Most are free to join but take a significant amount of sales commission, so monitor performance carefully.

Select one or two and keep your profile and listings current. The same goes for review sites such as Tripadvisor and TrustPilot . Only concentrating your energies on one or two review sites is a sensible strategy.

Channel managers, such as HRS , provide a service that sources hotel accommodation for corporate clients from a wide variety of OTAs instead of the client having to go directly to each separate OTA.

Similarly, instead of having individual accounts with OTAs, many hotel companies – big and small – will use channel management technology.

Omnibees , for example, allows hoteliers to sell to end-users and intermediaries through a single platform connected to the hotel’s property management system. Such solutions can automate sales and reduce the amount of commission paid by hotels.

Strategic partnerships

Working with other travel agents or tour operators is a great way to increase your sales. Working directly with Destination Marketing Organizations (DMO) will allow travelers to book with you directly when you advertise on the DMO website.

Building a relationship with travel bloggers will help get your name out there, as will close involvement with trade bodies associations.

To attract more bookings made directly on your website , a ffiliate digital marketing services are an option .

Offline channels

It would be a mistake to overlook offline distribution channels. The worldwide web may give you global reach, but cross-selling partnerships with local businesses such as stores, restaurants, cafes and hotels can turn out to be extremely valuable distribution channels.

Visitor information centers can be useful too because many tourists do not book tours and activities until they are in the destination.

Attending trade shows and industry events can be costly, especially for small businesses, but the resulting contacts and sales leads are often invaluable.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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18 distribution channels tour and activity operators should consider

• Tourism Marketing

This post was originally published in 2018 and has been updated in July 2021 for relevance. 

With so many ways to promote your tours , it's worth putting some thought into your distribution channels. How are you getting your tours in front of your customers? What range of channels are you using online and offline, what free advertising options are there?

Online Travel Agents (OTAs) such as Viator and Expedia are key distribution channels, but should only be one part of a balanced distribution plan to ensure your tour and activity business's recovery and sustainable future. 

To help you decide which distribution channels are best for your company, here is  rundown of what we consider to be the best channels for tours and activities:

1. Your website

In 2019, Arival found that operators conducted a whopping $44 billion in sales via their own websites. 

Research, planning and booking tours and activities are no longer what they used to be. Travellers are used to purchasing and booking other products and services online, so why can't they book a tour or activity online too?

The pandemic has also accelerated the rate of digital adoption due to tighter health and safety regulations. Tours to famous attractions now require timed ticketing to adhere to  social distancing and capacity limitation guidelines. For travellers, it also makes sense to book and secure a spot in advance so that their much anticipated city break is relished. 

2. Google My Business

Getting your tour company listed on Google is crucial. It's simple to do (click here to get started) and allows you to add your business, opening  hours, phone number, and directions. Your listing will come up on Google Search which adds trust to your customers when booking. It will also appear on Google Maps which will help with customer directions.

3. TripAdvisor

TripAdvisor should be one of your top priorities as a tour operator.  Phocuswright’s study   prepared for TripAdvisor revealed that 53% of bookers would not commit to booking until they read reviews, and 80% would read between 6 -12 reviews before booking. 

Here's how to get closer to the #1 spot on TripAdvisor for your destination .

4. Social media

Social media is an effective (and free) way to reach new customers, so it's definitely worth considering as one of your basic distribution channels. But rather than trying to succeed on every social media channel out there, it's worth working out which platform reaches your selected audience. 

Where does word of mouth travel best for your company? If it's on Facebook, you could dedicate more time to it. Are your tours very visually marketable? If so, Instagram may well be worth the time investment . Your social media strategy should always be adjustable.

5. Media attention

Do you offer something unique, or do you have an interesting take on the local tourism space that you'd like to share? The media is a great distribution channel if you have fresh and relevant content.

Create an experience that's different and contact local journalists for their opinion. If they are interested in hearing more, then you can share the story even further. 

Read more: How to organise a FAM trip and get the media coverage you deserve

6. Online Travel Agents (OTAs)

As we noted in our 2020/21 Travel Trends Report , OTA bookings were the fastest growing booking channel in 2019 (pre-pandemic) and made up just over a third of all our bookings. We expect OTAs to play a crucial role in recovery as more and more travellers go online to research, plan and book their next (safe) escape. 

There are many types of OTAs to work with, not just the popular ones like Viator, GetYourGuide, Trip.com, Groupon, or Expedia. It is important to note, however, that larger OTAs tend to be very selective with who they work with and as we've seen with Viator, they're focusing more on high quality tours rather than simply adding more tours to the site. 

Larger OTAs are also more focused on profitability which means that operators receive less attention and support from these OTAs when it comes to setting up their product listings. With this in mind, it is important that you work with a reputable booking system provider who can offer seamless API connections to larger OTAs. 

Lastly, there is also concern over the role and dominance of OTAs once travel resumes. GetYourGuide has invested heavily into its own branded tours, Originals , launched back in 2018, and  acquired Versailles operator Guidatours in April 2021. Potential conflicts of interest between promoting their own products over those of the operators its supposed to represent have been discussed by news sites and dismissed by the OTA. 

Other, smaller, OTAs you could look into include Headout, Globol, Aoliday, Lulu Trip and many many more. 

Not sure who to work with? Compare Viator, Expedia, GetYourGuide and Airbnb Experiences (and more) in one place.

7. Destination-specific OTAs

We've recently announced our partnerships with Swiss Activities and Tourism Exchange Great Britain (TXGB) , two platforms that work exclusively with tour and activity operators in their specified destinations. 

The great thing about working with country or destination OTAs is that they're experts in selling your destination, and understand how best to position your products in front of local and international customers who are interested in visiting your destination. 

8. Vertical-specific OTAs

These are marketplaces that focus on a specific vertical, for example watersports or adventure tours. 

Civitatis , for example, is the largest marketplace for Spanish tours while TourRadar focuses exclusively on multi-day tours. Manawa by Adrenaline Hunter resells on thrilling outdoor experiences while Silverscreen Tours offers tours to popular film locations, tv-show or movie themed tours. 

Learn more about TrekkSoft's extensive channel manager that is connected to over 30 marketplaces and growing.

9. Direct offline bookings

Direct offline bookings are still highly in demand, especially as most tour and activities are booked once the traveler is in-destination as  they are often weather-dependent, or there is a lot to choose from.

Advertising and stalls in destination 'hot spots' are key to selling additional tours. 

10. Sell through other tour operators and activity providers

Building a partnership and cross-selling your activities via TrekkSoft's Partner Network  with other tour and activity companies could be  a lucrative step for those on both sides of the deal.

Can you recommend each other when full or if your customer requests something you don't offer? You could even  bundle your complementary activities as a package , perhaps at a discounted price for guests.

11. Visitor information centres

If you have a local visitor information centre, this can be a really valuable partner. A lot of VICs  are willing to  act as an agent and sell your tours directly , and can do so easily with TrekkSoft's Point of Sale (POS) desk . They can take an agreed commission when they book tour and activities. 

Also check if you can put up marketing materials such as leaflets, brochures, or discount codes for your tours at their centres. 

Read more: The power of well designed (and well placed) brochures

12. Your destination's website

Is there a government-funded destination website you can promote your tours? This may just involve being on a list of suppliers but, increasingly, destination management organizations (DMOs) are acting as a marketplace and selling local tours and activities on their own website.

Some long-term DMO partnerships we've built include Fjord Norway , Interlaken Tourism, Davos Klosters, and Engadin St. Moritz.  

If your local DMO is considering this move, it's worth being a part of it. 

13. Inbound tour operators

If you have an established product with a good reputation in-destination, you should be in a good position to work with inbound tour operators (ITOs). They're looking for the best of your destination, and your business will stand above the rest if you're offering a unique tour with great reviews and value for money.

Read more: How much commission should you pay for distribution?

14. Sales agents 

Do you have contacts in the tourism industry who would be willing to sell your tours for you? With the  TrekkSoft Booking Desk , you can  allow agents (depending on their user rights) to view upcoming trips and availability, book trips, sell vouchers/add-ons, and even generate widgets to use on their own websites. And you can view all of your bookings in real-time on one handy dashboard.

15. Hotel concierges

Guests want recommendations of the best local tour and activities, tour operators want the visibility, and hotels can benefit from the commission. It makes good business sense for both hotel and supplier. With TrekkSoft, concierges can book directly into your system and see availability in real-time – without risk of overbooking.

16. Hostels

Often, but not always, visitors who stay in hostels can be more adventurous and open to activities with new people than those staying in hotels. Tour and activity operators can benefit from cultivating a special relationship with their local hostel.

This could involve a dedicated booking desk in reception, the option to book tours with the accommodation booking , marketing materials inside and outside the hostel (such as a board listing the next departure), or a dedicated departure time each morning from the hostel.

17. Airbnb Hosts

Partnering with local Airbnb hosts can be a great way to get precious word-of-mouth referrals for your tours. To find out who you should work with, go on Airbnb and look for local listings in your destination. Find out what travellers say about them to gauge if they'd be a good partner to work with. 

From there, send them a message, take them on a tour and offer them a referral commission for each new booking. 

Read more: How to work with Airbnb hosts to promote your tours and activities

18. Restaurants

Are you on good terms with local restaurants? Are any promoting or reselling your tours, or partnering with you? Depending on your activity, it might make sense to package it with a meal provided by a local restaurant.  For instance, you could combine a ski trip with a stop for fondue at a restaurant in the mountains. With TrekkSoft, it's easy to offer packages to your customers . The software also handles all payouts, invoicing and commission for you.

Photo by MING Labs on Unsplash

How do you pick the right channels for your business?

It all goes back to your ideal customer. Who does your business serve and where are they likely to book a tour? If you offer budget outdoor experiences, it would make sense to work with smaller OTAs like Adrenaline Hunter, midrange Airbnb hosts, hotels, and hostels. 

While your website is a great place to sell your tours, other channels can help you reach people you might find hard to reach on your own. When choosing the right mix of channels, consider the following:

• Can this marketplace reach my ideal customer more efficiently than I can? Are they more cost-efficient?
• Can this marketplace or reseller help me expand into a new market more efficiently? They might have market insights that you do not possess. 
• Does this reseller offer additional services? Perhaps they offer translation services or free photo services that you can also use for your own website. 
• How does working with this reseller impact my bottom-line? Can I afford the commissions? 

Don't forget to consider the non-negotiables for every operator: your website, your social media, and your TripAdvisor listing. 

How can you stay on top of so many channels?

Answer: With a channel manager.

What is a channel manager? A channel manager allows businesses to manage multiple distribution channels (OTAs or other online marketplaces) from a single interface.

What are the benefits? Coupled with a live booking system, a channel manager can update your availability in real time whenever a booking is made. This reduces admin, prevents human error, and removes the risk of overbooking. 

With a channel manager, each spot on your tours or activities is also promoted on your chosen range of OTAs simultaneously. This multiplies the opportunity to get booked by a customer.

A majority of business spend no more than an hour managing their bookings via OTAs each week, but a significant amount spend more than two hours per week . A channel manager is the best way to cut down on this admin.

Connect your live inventory to distribution channels like Viator, Expedia, GetYourGuide plus your agents and resellers with TrekkSoft.

Header image by Dstudio Bcn on Unsplash

Posted by Nicole Kow

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An overview of the best distribution channels

You’ve likely considered the pros and cons of listing your tours with a third-party website.

While your own tour website is a valuable tourism distribution channel, there’s no denying that a major platform like Expedia can reach a much wider audience. That’s when you begin to wonder, “Should I be selling my tours and tickets on another tourism distribution channel?”

In this post, we’ll go over the best distribution strategies for your tour or attraction business — including a list of the top Online Travel Agencies (OTAs) on the market.

What is a tourism distribution channel?

How tour and activity distribution platforms have changed over the last decade    

Direct vs. indirect distribution channels: What’s the difference?

13 online distribution channels for travel and tourism businesses

1. Viator/Tripadvisor

3. getyourguide, 4. airbnb experiences, 5. trip.com, 6. tourradar, 8. withlocals, 9. musement, 10. thrillophilia.

• 12. TripShock

13. Adrenaline

What is a tourism distribution channel .

A tourism distribution channel like an OTA is a platform used to sell your tours and experiences.

Tour operators and attractions typically use several different tour and activity distribution platforms to get their tours in front of more potential customers. 

In addition to selling tours on your website, you can also list them with third-party online travel agents (OTAs), such as Tripadvisor/Viator , Expedia , or GetYourGuide , that have big reputations and draw in a large global audience.

How tour and activity distribution platforms have changed over the last decade   

In this editorial for TripShock , Greg Fisher shares a detailed account of how distribution channels within the tour and activity sector have evolved dramatically over the past decade. Initially, many tour and activity operators did not even have basic online footprints, such as websites or reservation software, and were first introduced to third-party sales channels through Groupon in 2011. While these early attempts at digital marketing and sales provided a boost, they often lacked sustainability for long-term growth.

As the industry and its technology matured, the shift toward digital integration became inevitable, largely propelled by the widespread adoption of smartphones. This technological shift drastically increased consumer expectations for instant, mobile-friendly booking options, pushing operators towards real-time availability and efficient online reservation systems. 

Looking forward, Fisher predicts a continuing trend towards specialized distribution and reservation technologies that specifically cater to niche markets, such as unique coastal experiences or private charters. 

Many times, tour operators and attractions will use a combination of direct and indirect distribution channels to drive more bookings. So which one should you use? Let’s take a look at the differences between the two avenues.

When to use direct distribution channels

Your website is a direct-distribution channel because the transaction starts and ends with your company.

You’re not receiving the booking from a separate reseller. Instead, you’re converting your website visitors into paying customers , without any third-party interference.

This means no commission fees and more control over your brand identity and tour listings.

Pros of direct distribution channels:

• You don’t need to pay commission to a third-party reseller.
• You have complete control over the appearance and ranking of your tour listings.
• You build brand recognition as guests begin to recognize your logo and brand colors on your website

Cons of direct distribution channels:

• You may not reach as many people as a large Online Travel Agency (OTA).
• Travel websites have one of the lowest online conversion rates . You may need to invest a lot of time in your website design, tour descriptions, and site speed to ensure you’re set up to convert visitors.

When to use indirect distribution channels

Indirect booking channels involve a third-party reseller. This can be an OTA, official destination website, concierge services, tourist information centers, or review websites. 

While you’ll need to pay a third-party company commission, you’ll reach a larger audience, which can be a big benefit for new tour companies.

Pros of using indirect distribution channels:

• You can reach a global audience. Two out of every three travelers use OTAs to plan their trips, and big names like Expedia are known and used worldwide.
• New companies with small audiences can start to build brand awareness through an indirect distribution channel.

Cons of using indirect distribution channels:

• Your brand gets reduced to a few hundreds words of copy on a page that you have little control of. Meanwhile, your tours are listed directly next to all of your direct and indirect competitors, which makes it even harder to stand out.
• You have to pay significant commission fees (15% or higher).
• You’ll be competing with hundreds of listings, and your tours can get lost in the mix.
• You’ll have to deal with third-party algorithms that decide the ranking of your tours on a platform. 

13 online distribution channels for travel and tourism businesses 

Other than your website, OTAs are the most common distribution channels for tours and attractions. There are dozens of online travel marketplaces to choose from, so we’ve narrowed down the list for you.

Here are the top 11 online booking platforms dominating the tours and activities market. 

Viator is one of the leading online marketplaces for tours, activities, and attractions. The website receives over 450 million unique visitors every month. It has a huge database of experiences, with over 140,000 tours, activities, and attractions available in thousands of destinations around the world. Viator is a Tripadvisor company, so you can connect your business listing directly to the platform to start selling tours. 

While Expedia is mostly known as a booking engine for hotels and flights, it also sells tours and activities. Expedia Local Expert is the company’s experience platform, where your tours can be marketed across Expedia’s portfolio of over 60 travel booking sites like Travelocity and Trivago. Every company is individually pre-screened by what the company calls “Destination Managers” to ensure quality and value. Expedia Local Expert reaches 30 countries and is available in 17 different languages.

GetYourGuide is a trusted travel booking platform that travelers have grown to know and love. Anyone that offers tours, attraction tickets, city cards, cooking classes, transfers, multi-day tours, and special travel items like Wi-Fi sticks or experiences like wearing traditional costumes can join. Launched in 2009, the platform today has over 60,000 bookable activities and can make your tours available in 14 different languages.

Airbnb launched Experiences in 2016 in an effort to offer more than just accommodations. Under Experiences, it sells activities and events led by local hosts. Airbnb first started with 500 experiences in 12 cities, including Los Angeles, Miami, London, Cape Town, and Tokyo. It quickly grew to 30,000 activities around the world by 2019. The following year, the focus turned to online experiences in response to the pandemic. There were more than 40,000 experiences in more than 1,000 cities in 2020. Tour operators can host both in-person and online experiences on the platform.

With 45,000 employees and over 400 million members, Trip.com is one of the largest online travel agencies in the world. The website is a full-service travel agency offering hotels, flights, cars, as well as tours and attraction tickets. The platform has more than 1.4 million hotels in 200 countries and regions.

TourRadar is an online travel platform with more than 50,000 tours across 160 countries. The company calls itself an “Adventure Booking Platform” and focuses on helping travelers book private and group multi-day tours. Founded in 2010, TourRadar was one of the first to offer multi-day tours through an online marketplace. In 2021, TourRadar launched the “Adventure Booking Platform” to connect travelers, operators, and travel agents to tours through one platform. The company is not accepting new applications at this time, but new operators can sign up for a waitlist .

Klook is a travel experience booking platform based in Hong Kong. The website and app mostly serve the Free Independent Travel (FIT) market in Mainland China, Hong Kong, Taiwan, Korea, and Southeast Asia. Klook is now expanding globally and has a growing audience in parts of Europe and the U.S.

WithLocals focuses on connecting travelers with locals through food tours and other experiences. The activities offered on WithLocals are always private and fully customizable by each guest. The platform prioritizes authentic local spots and experiences that take travelers off the main tourist path. WithLocals has over 2,000 unique experiences in 88 destinations around the world. 

Musement allows travelers to book local tours and attractions, including temporary, exclusive, hidden gem, and free activities. The company was founded in Milan in 2013 and has since expanded to 1,000 destinations in 80 countries. When you list your tours with Musement, your content is revised and optimized for SEO to increase your search performance.

Thrillophilia counts with over 12,000 activities across 125 destinations. There are more than 5,000 suppliers selling tours and tickets on the platform, which reaches at least 3.5 million users per month. The company started with experiences in Bangalore, and today sells experiences in 15 Asian countries with Dubai, Thailand, Singapore, and Bali leading the charts after India.

Manawa is a booking platform dedicated solely to outdoor activities like scuba diving, hiking, and helicopter tours. It currently has over 5,000 activities listed across 59 countries. Experiences are divided into six categories: air, snow, land, water, urban, and crazy. Under the “crazy” category, you’ll find crocodile diving, survival training, and other wildlife experiences.

12. TripShock 

TripShock is a Florida-based OTA offering excursions in over 40 destinations. The platform was founded in 2009 as a niche OTA focusing on a specific geographical area, mainly in and around the Gulf of Mexico and the Southeast. TripShock offers over 1,000 tours, tourist attractions, and outdoor activities mostly suitable for individuals, couples, or families. The offerings range from bus tours and theme parks to museum experiences and dolphin watching. Better yet, it can be integrated with Xola .

Adrenaline offers over 1,400 different adventure travel excursions on its platform. The niche OTA focuses on adventure tourism and outdoor experiences, including helicopter tours, skydiving, ATV tours, zipline tours, and whitewater rafting excursions. It’s one of many OTAs that can be easily connected with Xola .

Distribution channels for tours and activities 

Now you have 13 options to consider as a new tourism distribution channel for your business. Whether you choose to work with a third-party reseller or not, remember that scoring more direct bookings is always the ultimate goal.

Writer Carla Vianna

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Maximizing Sales in Tourism: The Importance of Distribution Chains

Table of Contents

Have you ever wondered how the most unforgettable travel experiences reach you? How do those dreamy vacation packages get designed, priced, and delivered right to your fingertips? Behind the scenes of the glossy brochures and enticing online offers lies a complex network known as tourism distribution chains . These chains are the vital linkages that bring tourism products and services to the consumer, making the difference between a destination’s obscurity and its success in the global marketplace.

The anatomy of tourism distribution chains

At the heart of selling tourism lies the distribution chain, a system that resembles a relay race where the baton of travel products gets passed from creators to intermediaries before reaching the end consumer. But unlike physical goods, tourism offerings are intangible and perishable. A hotel room unsold for a night or a seat on a tour unfilled is revenue lost forever. This is where the distribution chain becomes crucial, ensuring that tourism products are marketed effectively to maximize sales and minimize waste.

Key players in distribution

Travel agents: Once the mainstay of travel planning, agents provide personalized service and expertise. Online travel agencies \(OTAs\) : Websites like Expedia and Booking.com have revolutionized how we book travel, providing convenience and comparison. Tour operators : These entities curate travel experiences, combining elements like accommodation, transport, and activities into packages. Destination marketing organizations \(DMOs\) : They promote specific regions and attract visitors through marketing campaigns and partnerships.

Choosing the right distribution channel

With a myriad of channels available, selecting the right ones is both an art and a science. It demands an understanding of your target market’s booking behavior and preferences. For instance, luxury travelers might favor the personalized touch of a high-end travel agent, while budget backpackers might rely solely on digital platforms to plan their adventures.

Factors influencing channel selection

Customer demographics : Age, income, and travel habits can dictate the most effective channel. Product type : Is it a simple hotel stay or a complex multi-country tour? Market reach : Do you want to attract local, regional, or international travelers? Cost : Consider the commissions and fees associated with each channel.

Integrating with intermediaries

Intermediaries play a pivotal role in connecting tourism businesses with potential customers. They have the tools and networks to tap into markets that might otherwise be inaccessible. But this relationship is a two-way street. Tourism providers must ensure their offerings are attractive for intermediaries to sell, often requiring competitive pricing , flexibility, and a clear value proposition .

Working with travel agents

Despite the rise of digital platforms, travel agents still wield significant influence, especially in niche and luxury markets. Providing them with thorough product training, attractive commissions, and real-time booking capabilities can entice them to prioritize your offerings.

Embracing digital platforms

OTAs have changed the game, offering vast inventory and user-friendly interfaces. A strong online presence with high-quality images, detailed descriptions, and customer reviews can enhance visibility and entice bookings.

Strategic pricing and promotions

Pricing is a delicate balance in tourism. It must reflect the value of the experience while remaining competitive. Dynamic pricing strategies, where prices fluctuate based on demand, seasonality, and booking lead times, can maximize revenue and occupancy rates.

Creating compelling promotions

Early bird specials : Encourage advance bookings with discounts. Last\-minute deals : Fill unsold inventory by offering attractive price reductions. Value\-added packages : Enhance the perceived value by bundling additional services or experiences.

Measuring success and optimizing

To ensure the distribution strategy is effective, continuous monitoring and optimization are key. This involves analyzing sales data, understanding the customer journey, and adapting to changing market trends. Tools like channel management software can help keep track of multiple channels and adjust strategies in real time.

Metrics to monitor

Booking patterns : Understanding when and how customers book can inform marketing and pricing decisions. Channel performance : Assess which channels bring the most revenue and adjust focus accordingly. Customer feedback : Reviews and surveys can provide insights into customer satisfaction and areas for improvement.

The distribution chain in tourism is the unsung hero that bridges the gap between a traveler’s aspirations and the realization of those dreams. By understanding and strategically engaging with this intricate network, tourism providers can ensure their products not only reach the right audience but also inspire action, bookings, and ultimately, memorable experiences.

How do you think technology will continue to shape the tourism distribution landscape? And what strategies do you believe are most effective for tourism businesses looking to stand out in crowded marketplaces? Share your thoughts and let’s explore the future of tourism together.

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Tourism Operations

1 Understanding Tourism Operations (Inter-Sectoral Linkages)

• Tourism Operations: A Historical Profile
• Inter-Sectoral Linkages
• Elements in Tourism Operations

2 Respecting Resident Concerns in Tourism Operations and Development

• Concern at Planning Stage
• Concern at Post-Planning/Implementation Stage
• Tourism Development Benefits to Residents vis-à-vis Economy

3 Quality Management and Customer Care

• Concept of Quality Management in Services
• Quality Management in Tourism
• Caring for Customers in Tourism

4 Managing Tour Operations – I (In-House Operations and Use of Technology)

• Setting Up A Tour Operation Company
• Management of In-house Operations
• Use of Technology

5 Managing Tour Operations – II (Field Operations – Inbound and Outbound)

• Developing and Managing Linkages with Principal Suppliers
• Managing Recruitment and Trained Manpower
• Inbound Tour Operations
• Outbound Tour Operations

The Best Distribution Channels in Travel and Tourism

Distribution channels in travel and tourism are the medium tour operators, attractions, travel agencies and other travel companies use to sell their products to their customers.

This article aims to answer the following question:

What are the main types of tourism distribution channels?

Before giving you the answer, you must understand how distribution channels can help you grow your tour company.

Understanding the distribution channels in travel and tourism

The chain of distribution in travel and tourism has grown with the surge of new technologies. Nowadays, distributing brochures to hotels is not enough to stay competitive in the market.

Not only being listed in the right distribution channels will assure better exposure for your tour company , but it will also make it more credible. That is the combination you are looking for to increase your profits.

Basically there are two ways of reaching customers in tourism :

• Directly – In a travel agency or through a travel agency’s website.
• Indirectly – Through a partnership with third-party distribution channels.

The distribution channels in travel and tourism can also be divided into offline and online channels .

Offline channels are more traditional and most tour operators are familiar with them. I’m talking about hotels, hostels, B&Bs, souvenir stores, restaurants, cafes, visitor information centers, trade shows and local partners .

Social networks, review platforms, mobile location-based services, and online travel agencies are examples of online distribution channels.

The role of these new technologies in distributing travel products and generating revenue has grown a lot in the past years.

However, the virtual landscape changes fast. For that reason, it’s important to be aware of new opportunities to list your products to remain competitive and successful.

After this brief introduction, time to break down the distribution channels in travel and tourism.

The best distribution channels in travel and tourism

We’re highlighting five distribution channels for tours and trips , where a tour company should be, to stay competitive.

1. Tour company’s website – the number one direct distribution channel in travel and tourism

When was the last time you didn’t start planning a trip online? Not for a long time, right? It’s obvious, the internet changed the traveler’s behavior.

The time from finding travel inspiration to packing your bags for a new travel adventure has never been shorter. And travelers love it!

That said, we can guarantee that remarkable tour photos published on your tour company’s website will attract curious eyes. Videos from the trip you share on social media profiles will bring you sales too!

At the same time, you can integrate an online tour booking system to your website, turning it into a direct distribution channel. That way your future customers can easily book a tour with you and you pay no commission for that!

Did you know that in 2019 $755 billion worth of travel was booked online ?!

By the end of 2023, travel and tourism revenues are expected to reach this same level again.

Nowadays, travelers start and finish their travel arrangements online. Because of that, it’s so important to maintain an updated and optimized website.

2. Google My Business – a must for a successful tour company

Google My Business is one of the most important indirect distribution channel in travel and tourism to sell your trips online.

Most of it is related to Search Engine Optimisation (SEO). Being listed in Google My Business helps your organic reach on Google search because it improves your SEO ranking .

Another benefit is having your business featured on Google Maps, which includes relevant details, such as opening hours, website link, contact number and customer reviews .

If you don’t have a business profile in Google My Business, creating one should be your priority right now. Use this guide to create the perfect listing for your business in Google and other platforms.

3. Hostels & tourist information centers – sell more tours and activities

After checking-in at a hostel, visitors often ask an employee at the check desk for a tour recommendation. Hence, tour and activity operators can benefit from a partnership with their local hostel.

On the other hand, travelers who are not staying at a hostel usually seek information in a tourist information center. So, it would be wise to contact your local tourist information center and see how you can partner with them.

Tour companies usually drop off flyers and brochures to hostels and tourist information centers. And interested travelers will call to set up a reservation with your tour company .

Now you know how important it is to stay in good grace with the front desk and to develop perfect relationships!

4. Review sites – they will make or break your tour business

Is there a traveler who hasn’t heard about TripAdvisor ? I don’t think so.

Depending on the reviews you get , they will either make or break your tour business. All your marketing efforts won’t be able to reverse the negative effect of a couple of negative reviews.

However, not so much effort will be needed to marketing your travel packages , if your tour business has hundreds of positive reviews.

This is because only 14% of consumers trust traditional advertising, while 92% respect reviews on sites such as TripAdvisor .

That makes it a very important distribution channel in travel and tourism. So, you better be good!

5. Online travel agencies – online giants with huge audiences

Online Travel Agencies ( OTAs ) are powerful distribution channels in travel and tourism, boasting millions of users to their websites every month.

OTAs will list your tours and trips on their site and allow their users to book with you.

Usually, this works through a pay-per-click format. But it might worth the money, considering that bookings through those platforms are expected to grow year over year .

Three global OTAs that tour operators should consider partnering with are:

• GetYourGuide
• Touriosity (commission-free OTA)

There are also much less known local OTAs. Consider partnering with them, too.

Finally, choosing wisely the right distribution channels in travel and tourism means a strategic advantage for your tour company .

It takes a bit of time to figure out which one works best for your tour business. Anyway, starting from enabling direct online sales through a tour company’s website is always a good practice.

If you liked this article, consider downloading our infographic 5 Channel Ideas to Sell your Tours.

What are the distribution channels you find the most suitable for your tour business?

ORIOLY on May 5, 2021

by Lidija Šomodi

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Low Budget Digital Marketing Strategies for Tour Operators

In this ebook you will learn strategies to boost your digital marketing efforts, and the best part, at a low and even zero cost for your business.

The Ultimate Guide to Mastering Trip Advisor

TripAdvisor is an excellent tool to sell tours and activities online and this guide will teach everything you need to know to master it.

A Simple Guide on How to Sell Tours With Facebook

Zuckerberg’s platform is by far the most popular among all social media. So why not selling tours and activities with Facebook help?

Comprehensive Guide on Digital Marketing in Tourism for 2021

Online marketing is a new thing and it changes fast, for that reason we made this eBook where we compiled the latest online marketing trends in tourism!

Other resources

Live Virtual Tours: Everything You Need

5 Channel Ideas to Sell your Tours

How to start a food tour business, related articles.

Orioly updates and new functionalities: Coupon system, improved POS Desk application and more

Tour organizers can assign coupons to partners, send documents in Polish, and use the improved POS Desk application.

How to Manage Tour Guides: A Practical Guide to Hire, Lead, and Inspire Your Staff

The travel industry is a dynamic and competitive field, focused on providing customers with memorable and amazing experiences, and the quality of your tour guides can significantly impact that. That’s why managing and inspiring these professionals, as well as hiring the best of them, is crucial to ensuring your business’s success and bringing a smile […]

How to Enable Guests to Book Additional Activities with Accommodation?

Discover the advantages you gain as an accommodation provider by offering the booking of additional activities through Orioly.

10 distribution channels your tours and experiences business should be using

By Rezdy — 30 Aug 2018

distribution   marketing   tour operator   tourism business strategy

Updated May 2023 – As a tour operator, bookings are your bread and butter. By maxing out your sessions and having high steady levels of bookings all year round, your business will flourish. However, achieving this goal isn’t always easy. It’s even more challenging when you solely rely on one distribution channel.

When it comes to examples of distribution channels in the tourism industry, many operators automatically assume that online travel agents (OTAs) are the only form of resellers available. However, this isn’t the case. Travel distribution channels come in a variety of different types of resellers and distribution strategies. By diversifying your distribution channels and understanding what the main types of tourism distribution channels are, you can maximize your visibility and attract a wider range of potential customers.

In this article, we’ll explore 10 types of distribution channels in the tourism industry that tour operators can use to reach new customers and increase bookings.

Why it’s important to target the right distribution channels

For many tourism businesses, broadening your distribution channels is a smart way to elevate your tourism marketing strategy. By delivering your products via different streams and using valuable third-party integrations, you’re expanding your reach to a bigger pool of potential customers.

Distribution channels are all the different ways that your services get delivered to your customers. There are many types of distribution channels in the tourism industry. A distribution channel can be a direct booking via your website or through third-party resellers within the tourism industry. To put it simply, any platform where your services can be turned into a transaction is considered a distribution channel.

Top 10 distribution channels

As a tour and activity operator, choosing the right distribution channels can greatly impact your business’s success. Below, we’ll take a closer look at 10 of the main distribution network partners in travel and tourism, along with the benefits of each one.

By understanding what the main types of tourism distribution channels are, you’ll be able to make an informed decision when forming partnerships with distributors and finding the right resellers for your products and services.

1. Your website

Don’t underestimate the power of your own website. Unlike other distribution channels, you remain in control of branding and customer experience during the booking process on your website. This enables you to take advantage of booking trends and more accurately finetune your messaging so that it is well received by customers.

Your website also has a direct impact on your business’s reputation. A professionally branded website helps foster trust and authority within the marketplace. Customers will be more willing to book directly through your website if they are welcomed by a mobile-optimized website that enables a seamless booking experience. When supported by a strong SEO strategy, your website can dramatically boost customer impressions of your website and increase overall engagement. 

Tip: When it comes to content, quality always trumps quantity. Don’t fall into the trap of stuffing your blog and website pages with long keywords or boring content. Rather, scatter in relevant keywords and create content that matches the user’s intent when searching for the keywords you are targeting.

2. Online travel agencies (OTAs)

Online travel agencies are one of the biggest players within the chain of distribution in travel and tourism. There are heaps of top online travel agencies you can partner with. These include big names such as Tripadvisor, Expedia, and Viator to name a few. By partnering with OTAs, you can reach a wider audience, regardless of whether you are an inbound or outbound tour operator.

OTAs are one of the most popular travel distribution channels as their websites gain millions of visitors every day. OTAs appeal to travelers as it’s a one-stop shop for both travel and tourism products. By being able to compare the prices of these travel products and book all of them at once, it provides travelers with an easy booking process. And with the majority of customers now booking on their mobile devices, OTAs have made their booking process a lot easier by building their own applications.

Furthermore, with the help of their strong domain authority, OTAs rank at the top of search engine results – making your services quicker and more accessible for customers to book.

Tip: The competition on OTA websites is tough. Be sure to display professional-looking photos and videos that showcase your services. Well-written tour descriptions will also go a long way.

3. Tourist information centers

Almost every major city has visitor information centers (or VICS). These centers are a place for travelers to enquire about everything related to the area. From accommodation, tours and activities, transportation, or simply suggestions on things to do. VICS will help visitors in suggesting and organizing itineraries and travel arrangements based on their preferences.

Partnering with VICs helps boost the perception of your business as VICs usually hold an authoritative position in the customers’ eyes. They’re perceived as a trusted source and will most likely trust your business for being affiliated with VICs. It’s for this reason that visitor information centers are great to partner with to broaden your distribution channels in travel and tourism.

Tip: Some VICs don’t ask for commission for bookings that they send to you, while others have a pricing structure to list on their site. Make sure you do your research before you decide to partner with a VIC in your travel distribution channel strategy.

4. Your partner network

Your partner network can include Destination Management Organizations (DMOs), local governments, vendors, hotel concierge services or even other tour operators.

Local government websites, for example, often promote different travel businesses and experiences for tourists visiting a specific location. For example, Tourism Australia helps promote events and businesses every month by featuring them on their monthly e-guide, The Hot List. The Hot List is filled with the latest activities, events, and things to do in Australia and is published each month with new suggestions. 

To expand your business’s travel distribution channels through partner networks, you can simply approach relevant businesses or organizations and enquire about promotional opportunities or partnerships. 

Tip: Travel networking events and tourism conferences are great places to build mutually beneficial partnerships with other businesses.

Google manages a variety of tools that can be employed to increase your business’s online visibility. Two of the most useful tools offered by Google that have significantly enhanced the chain of distribution in travel and tourism are Google Business Profile and Google Things to do .

By creating and optimizing a free business profile on Google, companies can encourage more lead generation and boost their visibility for local searches. Business profiles are also valuable when fostering customer engagement as they are open for customers to leave reviews, ask questions, and submit relevant photographs. 

Google Things to do is another free tool that can increase your business’s visibility and allow you to connect with potential customers. This search experience is designed specifically for tour, activity, and other attraction providers looking to increase their distribution channels in travel and tourism. By using Google Things to do, businesses can more seamlessly convert relevant Google searches into direct bookings. 

Tip: When managing your Google Business Profile, it’s important to check it every week or so to ensure that contact details are up to date and that customer queries are answered without delay.

6. Destination websites

The travel and tourism industry has a significant impact on economies worldwide. With this in mind, it’s no surprise that many governments have taken notice and responded by providing support to local tourism businesses.

Many local, state and national governments have recognized the power of the tourism industry by creating destination websites to promote their area to potential visitors. These websites offer a wealth of information on local attractions, events, and accommodations. They may also feature package deals that include tours, activities, and other services.  

As a tour or activity provider, you can benefit greatly from working with these destination management organizations. By offering your services as part of their packages, you can tap into a wider audience of potential customers. This can be especially valuable for businesses looking to attract international travelers who may not be familiar with the local area.

Tip: When reaching out to destination websites, it’s important to do your research first. Take the time to understand their audience, the type of content they feature, and the services they promote. This will help you tailor your pitch and ensure that your tours and activities align with their brand and messaging.

7. Daily deal sites

Who doesn’t love a bargain? Vouchers and daily deal sites like Groupon and Living Social can be a valuable distribution channel for your tour or activity business. These sites offer a platform to reach budget-savvy travelers who are always on the lookout for unique and affordable experiences.

When utilizing daily deal sites, it’s important to create a compelling offer that provides value to the customer while still generating revenue for your business. Consider offering a discounted rate on an activity package or bundling services for a more attractive deal.

However, it’s essential to limit the number of vouchers that can be sold to avoid 

overbooking and ensure a high-quality experience for all customers. Additionally, be sure to set clear expiration dates and redemption instructions to avoid any confusion or frustration among customers.

Tip: Daily deal sites can be especially useful during low-season travel periods and when you have remaining slots to fill up. By carefully crafting your promotion and utilizing this distribution channel, you can attract new customers and generate additional revenue for your business.

8. Hotel concierges

While traditional, working with hotel concierges is a highly effective distribution channel for tour and activity operators. By collaborating with hotels and accommodation centers, you can reach a wide range of potential customers who are looking for things to do during their stay.

This strategic partnership is particularly useful for providing opportunities to maximize last-minute bookings. Many travelers prefer to plan their activities after arriving at their destination, and featuring your services at hotels can help you capture those customers. By making it easy for guests to book your tours and activities through the hotel, you can increase your chances of securing those last-minute bookings.

Another key benefit of working with hotels and accommodation centers is the reduced competition. Hotels naturally have a reputation to maintain, and they typically only refer their guests to a handful of trusted and professional tour operators. Building a strong relationship with hotels through providing exceptional service can secure your business’s place as one of their preferred partners. 

Tip: To effectively work with hotels and accommodation centers, you must first develop a professional and trustworthy reputation. Make sure your tours and activities are high-quality, and prioritize providing exceptional customer service. You can also make it easier for hotels to refer their guests to your businesses by providing them with promotional materials such as brochures and flyers.

9. Retail travel agents

Retail travel agents can be a valuable distribution channel for tour and activity operators. These agents have an established customer base of travelers who are looking for assistance with planning their itineraries. By working closely with local travel agents, you can promote your tours and activities on a personal level to their customers.

One significant benefit of partnering with retail travel agents is that they offer personalized services that cater to their customers’ needs and wants. They have the ability to book multi-day tours, flights, private charters, and other services that complement your tours and activities. This personalized touch can be an excellent selling point for your business and can help you stand out from your competitors.

Another advantage of working with retail travel agents is that they offer consistency in incoming bookings. Their customers are often repeated customers who trust their agent’s recommendations and rebook their services through them. This provides a reliable source of bookings for your business and helps to ensure a steady stream of revenue.

Tip: To successfully work with retail travel agents, it’s essential to build and maintain strong relationships with them. Be sure to provide them with high-quality marketing materials, such as brochures and flyers, that showcase your tours and activities. You can even consider offering incentives or commissions for each booking they make on your behalf. These small gestures can go a long way in building a lasting partnership with retail travel agents.

10. Social media

Social media platforms such as Facebook, Instagram, Twitter, and LinkedIn can be an effective distribution channel for your business. With billions of users worldwide, social media platforms provide you with a massive audience to promote your services. By creating a social media marketing strategy that includes relevant hashtags, quality content, and engaging visuals, you can increase your brand visibility and reach a wider audience.

Social media has also become a key platform for customer engagement and communication. Customers expect brands to have a social media presence, and they often turn to social media to ask questions, provide feedback, or voice their concerns. By actively monitoring your social media channels and responding promptly to customer inquiries, you can build trust and loyalty with your audience.

Additionally, social media allows you to target specific audiences through paid advertising. With social media advertising, you can create highly targeted campaigns that reach the right people at the right time. For example, you can target users based on their location, interests, age, gender, and more. This can be a highly effective way to reach new customers and drive conversions.

Tip: Social media is a constantly evolving platform, and what works today may not work tomorrow. It’s essential to stay up to date with the latest social media trends, algorithms, and best practices to ensure that your social media marketing efforts remain effective.

Managing your distribution channels

Working with the main distribution channels in travel and tourism sure has its benefits, but it does come with added work. Connecting with them also comes with a set of challenges. Joining a tour operator marketplace and choosing the right channel manager can help alleviate the stress of setting up your travel distribution channels.

For instance, Rezdy Channel Manager is a marketplace platform designed specifically for tour operators. Through Rezdy Channel Manager, you’ll be able to connect with thousands of resellers and build your distribution channel with a click of a button.

Rezdy’s Marketplace platform simplifies the overall reselling process into 3 simple steps: 1. List your products 2. Set your commission rates 3. Let thousands of agents and resellers resell and promote your products

The good news is that if you’re already a Rezdy booking software customer, you instantly have access to Rezdy Channel Manager. Allowing you to benefit from the best of both worlds – an advanced booking system that will simplify your processes and the ability to instantly connect and manage thousands of resellers from one central system.

Ready to take the step to boost your bookings with Rezdy? Start a FREE 21-day trial or book a demo today.

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Distribution

eBook: Guide to growing your tourism business through distribution & channel management tools

How to navigate API connections with resellers

Case Study: Wendella Tours & Cruises

Unlocking Growth for Your Tourism Business: Leveraging Distribution & Channel Management Tools

Can you grow your tourism business through distribution and channel management?

Yes! This means you might sell directly to customers or use other people like online travel agents, or companies that package trips. Using a mix of ways to sell can help you reach more people, from local travel agents to big online platforms.

An Overview of the Tourism Distribution Channel

Even though selling directly to your customers is key, using more ways to get your business out there can really help. It can make more people aware of your brand, lower the risks of ups and downs in sales, and generally get you more bookings.

Many of these channels have larger marketing budgets and reach wider customer bases, leading to enhanced exposure and bookings of higher quality. Typically, suppliers provide their availability to these channels, securing bookings at agreed-upon commission rates.

For instance, consider managing a heritage museum. Collaborating with nearby restaurants and shops to create bundled packages that include museum tickets along with dining vouchers or discounts on local souvenirs can attract visitors and increase foot traffic to your museum. In short, this could get more people through your door.

Breaking Down the Distribution Chain in the Tourism Industry

At its heart, selling more in tourism means connecting with a bunch of different businesses and platforms that help get your product to the customer. There are a few steps to this, from the people who supply the tourism experiences to the final customer who books them.

It operates through four main steps: suppliers/principals, wholesalers, resellers, and end consumers .

These are the primary providers of accommodation, transportation, attractions, and experiences. Think of hotels, airlines, and iconic attractions like the Empire State Building.

Wholesalers

These entities create travel product packages for retailers or sometimes sell directly to consumers through their own websites. Examples include Destination Management Organizations (DMOs) and Global Distribution Systems (GDSs).

For example, if you own a winery that offers tours and tastings, collaborating with regional wholesalers to include your wines in their curated wine packages can help you reach customers who may not have otherwise discovered your winery.

They purchase and bundle experiences for direct sale to consumers. Traditional travel agents and online platforms like Expedia fall into this category, offering a wide variety of tourism products.

Ultimately, consumers are the end users whose decisions significantly impact the distribution chain. In the end, it's all about the people who book and experience what you offer.

The Perks of Tourism Distribution Channels

For tour operators, expanding your network through diverse tourism distribution channels isn't just about selling more tours; it's a strategic move that can significantly impact your own tour business's reach, reputation, and revenue.

Let's delve deeper into how each advantage specifically benefits tour operators:

Expanded Connectivity

For tour company operators, connecting with a broad array of stakeholders—ranging from local attractions and hotels to international travel agencies and online booking platforms—opens up a world of possibilities.

This network not only diversifies your customer base but also fosters partnerships that can lead to innovative tour packages.

Imagine collaborating with a local artisan for exclusive workshops or a regional conservation effort for eco-tours, thereby offering unique experiences that stand out in the market.

Increased Efficiency

Leveraging channels with substantial marketing resources can be a game-changer for tour operators. Instead of allocating a hefty portion of your budget to marketing, partnering with well-established online travel agencies (OTAs) or destination marketing organizations can amplify your visibility with less financial strain.

These channels work on reaching vast audiences daily, ensuring that your tours gain exposure to potential customers you might not have reached otherwise.

Enhanced Flexibility

Working with various partners, from OTAs to local travel influencers, grants tour operators the flexibility to experiment with different marketing tactics and product offerings. This could mean offering exclusive deals through a specific platform, testing out new tour themes, or customizing packages for niche markets.

The ability to adapt and respond to market trends quickly is invaluable, allowing you to meet customer demands more effectively and stay ahead of the competition.

Greater Transparency

Distribution channels can offer detailed analytics and customer feedback, providing tour operators with a clear view of what works and what doesn't. This insight allows for more informed decision-making regarding the tour operator, design, pricing strategies, and marketing approaches.

Understanding customer behavior and preferences leads to better-tailored experiences, enhancing satisfaction and increasing the likelihood of repeat business.

Improved Accessibility

In today's digital age, customers expect the convenience of easy online bookings across various devices. By promoting your tours across multiple online and offline channels together, you ensure that potential customers can find and book your experiences with ease, whether they're scrolling through an OTA on a laptop or tapping through a travel app on a smartphone.

This accessibility is crucial for capturing the attention of travelers who are increasingly reliant on digital platforms for planning and booking their trips.

Leveraging Distribution for Growth

For tour operators, the strategic use of distribution channels isn't just about selling more tours; it's about building a resilient and adaptable business capable of thriving in a competitive landscape.

By embracing connectivity, efficiency, flexibility, transparency, and accessibility, you can significantly enhance your operations, offer exceptional experiences to your customers, and set your business on a path to sustained growth and success.

For instance, imagine you own a small eco-lodge in a remote natural reserve. By teaming up with online platforms specializing in sustainable travel experiences, you can attract a target market of eco-conscious travelers who actively seek out environmentally friendly accommodation options. This way, you're leveraging distribution channels to target a specific niche market.

The Primary Types of Tourism Distribution Channels

When it comes to tourism distribution channels, there are four main types:

• Traditional Channels: These encompass physical marketing avenues such as travel agencies, tourism information centers, and promotional materials.
• Online Channels: Online travel agencies (OTAs) dominate this category, providing centralized platforms for booking flights, accommodations, and local experiences.
• Mobile Channels: These channels leverage digital platforms and apps to promote and sell tourism products, fostering greater customer engagement.
• Direct Channels: Here, businesses take control of their marketing and sales efforts without intermediaries, utilizing platforms like websites, social media, and direct booking systems.

Let's say you run a family-owned restaurant renowned for its regional cuisine. To reach more customers beyond those dining in, you can explore partnering with popular food delivery apps in your area. By teaming up with these platforms and offering delivery services, you can extend your restaurant's reach and tap into additional revenue streams through alternative distribution channels.

Thanks to technological advancements, managing partnerships with multiple resellers has become effortless. These tools simplify inventory management, rate distribution, and commission management, offering real-time visibility and minimizing the chances of double bookings.

How to Grow Your Tourism Business Through Distribution & Channel Management

Here are some practical steps to enhance your tourism business through effective distribution strategy and channel management:

Broaden Your Reach

You can go beyond direct sales to other offline channels to attract a wider audience and boost bookings. Partner with online travel agencies, local businesses, and niche market platforms to expand your distribution channels.

Customize Your Approach

Identifying the most suitable distribution channels for your travel and tourism offerings can boost marketing efforts. Whether it's traditional, online, mobile, or direct channels, tailor your strategies accordingly.

Foster Collaboration

Collaborating with complementary businesses and platforms is a good consideration for creating appealing bundled packages, special promotions, and cross-promotional opportunities. These partnerships can attract more visitors and drive sales.

Embrace Technology

You may utilize channel management tools and digital solutions to streamline inventory management, automate rate distribution, and improve communication with partners. This optimization enhances efficiency and facilitates growth.

Prioritize Customer Satisfaction

Focusing on providing exceptional experiences to your guests will help you remain competitive in the market. Positive experiences lead to customer loyalty, favorable reviews, and referrals, ultimately fueling growth and success in the competitive travel industry

Boost Your Bookings: Connect with Top OTAs through TicketingHub

To select the best distribution channels for your tourism business, it's crucial to understand your target markets, research available sales channels, assess costs and benefits, and monitor performance.

For instance, let's say you run a family-owned restaurant celebrated for its regional cuisine. By conducting market research to pinpoint popular food delivery apps in your area and teaming up with them to provide delivery services, you can broaden your restaurant's target audience beyond in-house diners. This way, you can boost revenue through supplementary distribution channels.

TicketingHub makes it super easy for tour operators to reach more travelers and boost sales by connecting them with top Online Travel Agencies (OTAs). Just imagine tapping into a massive pool of eager tourists looking for their next adventure!

By listing your tours on well-known OTAs through TicketingHub, you’re not just selling more—you’re becoming more visible and accessible. It’s a hassle-free way to manage bookings and keep track of availability in real time, all from one platform. With TicketingHub, you're set to increase your bookings and grow your revenue effortlessly.

In summary, mastering distribution channels is vital for tourism businesses to thrive. By diversifying strategies, embracing collaboration, investing in technology, and prioritizing customer experience, businesses can expand their reach and competitiveness in the industry.

Incorporating these channels effectively requires a balance between direct engagement with your customers and leveraging intermediaries to broaden your reach.

It's about creating a synergy that maximizes exposure while maintaining the unique essence of your brand and the quality of your tour experiences. With the right approach, the expansive world of tourism and online distribution channels can be a powerful ally in achieving your business goals.

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7 Distribution Channels To Maximize Your Travel Bookings

• Post author By varun
• Post date January 4, 2023

As the travel and tourism industry regains its growth momentum, the conversion rate of travel enthusiasts to customers remains pretty high. And existing customers are of course looking out for better travel and tourism options. While the travel industry is placed on the hot seat of growth, restrategizing on the various distribution channels that a travel operator utilizes cannot be better timed than at the present.

In the ever-evolving travel and tourism industry, the effective distribution channels keep evolving too, with newer and better options providing opportunities for travel booking maximization. It thus becomes crucial to be aware of some best distribution channels that a travel and tourism operator can utilize for booking and revenue maximization. But before that, here’s a quick look at what these channels comprise and the stages they may be placed in for a better strategizing and channel selection.

The Scope Of Travel And Tourism Distribution Channels

With travelers becoming more demanding and savvy, getting bookings on a large scale has become trickier than ever as they often seek customization. While the quality of travel services is irreplaceable in the overall booking success, visibility of the right travel options at the right time contributes equally crucially. And it largely depends on the distribution channels a travel operator has selected. 

Travel distribution channels can simply be defined as links in the supply chain of a travel operator that help advertise the services to the industry target audience. A distribution channel is often the link between a travel operator and their customer, leading to the booking of travel services and the conversion of travel aspirants to customers. These channels can be broadly categorized under the following two types.

• Direct channels for travel product and service distribution
• Indirect channels for travel product and service distribution

Direct channels of distribution often result  in cost-effective bookings while indirect channels can bring in customers from the farthest and most inaccessible points of distribution. With their share of pros and cons, both types of distribution channels can be crucial for travel booking maximization for a travel operator. For the convenience of choice, these channels can also be categorized as online and offline methods for travel product and service distribution. Let’s check out 7 of the most popular channels of distribution in the travel industry.

Top 7 Distribution Channels For Travel Bookings Maximization

Business website .

A business website is the most popular and one of the most efficient distribution channels that a travel business can monetize on. A travel operator’s official website can be the digital face of the business and is a great place to portray brand value. Depending on its overall marketing and advertising efforts, the business website can also receive organic traffic with a wide base of potential customers. 

It is also a great place to convey marketing messages inherent to the travel provider that can be easily tailored per upcoming travel trends for a customized customer experience. It also helps enhance the overall visibility of the business’s travel services that provide detailed insights to aspiring travelers for the required travel bookings .

Today, the increased digital exposure has led aspiring travelers to start their searches online. Thus, a well-strategized travel website with the right SEO and marketing techniques in place kind of provides a great exposure for visitor conversion, leading to maximized travel bookings and can be one of the best distribution channels to go for.

Online Travel Agencies (OTA) 

Today’s travel booking has earned a ubiquitous dependency on Online Travel Agencies due to their widespread reach across global target audiences in the industry. OTAs have thus become an integral part when it comes to travel bookings and can significantly leverage a travel operator’s products and services, guiding it to easy booking maximization. No wonder, it is among the top distribution channels to opt for today and earn travel bookings for any tour operator.

Travel businesses can leverage these OTAs  to list their products and services for bookings to reach out to a wide customer segment across geographical boundaries. Travel businesses can choose either outbound OTAs or inbound OTAs for the purpose. Reaching out to OTAs that list these operators on their sites for booking would be an outbound initiative. 

Alternatively, an inbound OTA as a distribution channel would be the one which reaches out to the travel operator to leverage the latter’s prominence in say locational advantage or exclusive travel services. OTAs can also be selected as suitable distribution channels based on the destinations or verticals they reach out to such as properties, adventure sports, water sports, corporate travelers, etc.

Metasearch Engines

Through the length and breadth of the supply chain that tour operators can access, metasearch engines are pretty effective in travel booking maximization. These engines uplevel the digital reach that OTAs provide to travel operators. One of the most effective metrics that leads to higher bookings from metasearch engines is the availability of rate parity. 

These engines retrieve crucial information from various OTAs along with several other selling channels and present products and services based on aggregated results for optimal value to customers. They also allow for easy comparison of various travel elements, thus also assisting with customer satisfaction.

A travel business can thus leverage these metasearch engines as useful distribution channels for booking maximization with the following things in place.

• Match the pricing listed on these engines with that on your website.
• The cost per click payable for these listings must be balanced out with the level of competitiveness it provides as against other OTAs.
• A metasearch engine listing can be fruitful if the engine’s goals and type of audience aligns with bookings received as per the cost incurred.

Some standout benefits that make these metasearch engines useful include easy to search information, simplified booking processes, and an enhanced overall user experience.

Other Tour Operators And Activity Providers 

Cross-selling your travel products and services in partnerships with other tour operators and activity providers is another way to maximize the bookings received. Bookings so received are not only mutually beneficial for these travel partners but also provide enhanced value to travel customers, thus reaping benefits through customer satisfaction. 

Travel operators can pass on excessive bookings to their partner providers from customers that they receive. Alternatively, they can also connect with the seller partners for any specific travel products or services that their customers demand for a more customized travel experience. 

Cross-selling travel operators can thus be one of the best distribution channels to tap targeted customers across the industry. As these partnerships can easily span across various destinations, it can also provide a locational advantage to a great deal in upselling the right travel bookings to customers seeking them.

GDS Or Global Distribution System

The Global Distribution System or GDS is a crucial link in the industry supply chain that helps bring in bookings from travel aspirants internationally. This worldwide network of travel suppliers and bookers allows for easy communication between the two for a right service value strike-up as and when needed. Online booking engines and individual travel agents utilize the travel data and price information available on a GDS to enable booking transactions that are automated. 

It is one of the crucial distribution channels that connects travel operators with their targeted customer base with ease. The real-time availability of pricing and other travel information makes these systems pretty effective too. A travel operator can always leverage their business visibility and attractiveness by obtaining a listing on popular Global Distribution Systems and setting competitive prices as against similar products and services to receive high travel bookings.

When utilizing GDS as a distribution channel, make sure to assess the cost of listing on these platforms as against the returns they provide. It is a more effective channel for travel providers operating in the accommodation vertical.

Social Media 

The power of social media for bringing in high travel business visibility cannot be underestimated. With social media fast becoming one of the most effective tools for digital marketing, travel operators can reliably use popular social media platforms to reach out to their targeted customer base. 

As these are platforms that allow a wide scope for brand value representation with utmost creativity, getting the right brand imprint on targeted customer base becomes easier. Leaving a lingering impression on the mind of followers and gaining brand recognition through consistent reachout is also easier than ever through social media today. Popular social media platforms can thus be leveraged as useful distribution channels to gain maximized travel bookings.

Email/Phone Booking

A conventional yet powerful distribution channel, voice and email-based booking continues to loop in new customer bookings through consistency and customized offerings. Slipping in the right travel offer to your subscriber base at the right time can work wonders when seeking to bring in new travel bookings from repeat customers and subscribers.

Reputed travel operators often rely on the traditional email and phone call marketing as a useful distribution channel for informing their customer base about new product and services offerings. The channel can be better customized as per past booking trends of customers to provide a booking offer with an elevated travel experience.

While this list completes, another distribution channel that can’t miss a mention is wholesalers. These distributors serve as a crucial link between travel operators and suppliers and carry immense potential for targeting the right traveler segments. While the price margins for this distribution link may be thin due to a pre-existing arrangement, wholesalers can serve as one of the crucial distribution channels for last-minute or seasonal bookings due to their expansive reach across both B2B and B2C customer segments.

Conclusion 

When creating a strategy to select the right distribution channels , one must zero in on factors like the type of travel services they provide, their area of operation, customer segment targeted, activities offered, etc. Based on these factors, one can narrow in on the best channel to go with. Ideally, finding a mix of multiple distribution channels works the best in implementing business marketing and advertising strategies that help maximize travel bookings.

You can always complement your travel and tourism business by leveraging the tools and techniques offered on Pathfndr . A travel website hosted on Pathfndr is powered by global travel data and travel solutions, dedicated algorithms, and travel business partnerships that simplify reach out and make choosing the right distribution channels easier than ever.

You may already be losing time searching for the best platform for your travel website when Pathfndr is just a click away! Build your code-less website right away!

Distribution Channels in Tourism

According to Moutinho (2011) tourism distribution channels involve supplier products to be public (consumers) through channels members. Mourinho specifies individual parties in each category in the following manner:

Tourism services, distributors and target population

Source: Moutinho (2011)

Mohapatra (2013) also discusses various aspects of distribution channels in tourism presented in above, and observes an interesting tendency in relation to these channels. Namely, according to Mohapatra (2013), the share of online sales transactions through these channels have been consistently and rapidly increasing compared to the volume of offline sales transactions during the two decades. However, Mohapatra (2013) fails to refer to any official statistical data to back up this claim.

References 

Mohapatra, S. (2013) “E-Commerce Strategy: Text and Cases” Springer Group

Moutinho, L. (2011) “Strategic Management in Tourism” CABI

Distribution channel, tourism

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• John Kracht 3  

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A tourism distribution channel is a network of intermediaries that facilitates the sales and delivery of products and services specifically related to tourism from suppliers to consumers (Buhalis and Laws 2001 ; Kracht and Wang 2010 ; Longhi 2009 ). Tourism distribution channels can be distinguished from the ones of tangible goods in that goods are conveyed to consumers whereas tourists, in most cases, are conveyed to the products and/or services they purchase and consume (Buhalis and Laws 2001 ).

Evolution of tourism distribution channels

The information and communication technology has facilitated the evolution of tourism distribution channels. This evolution has involved the introduction of additional layers and categories of emerging intermediaries, which has transformed the structure of tourism distribution channels into an increasingly complex one.

A milestone in the evolution of the structure of tourism distribution channels occurred in 1993 when the commercialization of the...

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Buhalis, D., and E. Laws 2001 Tourism Distribution Channels: Practices, Issues and Transformations. London: Continuum.

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Buhalis, D., and P. O’Connor 2005 Information Communication Technology Revolutionizing Tourism. Tourism Recreation Research 30(3):7-16.

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Kracht, J., and Y. Wang 2010 Examining the Tourism Distribution Channels: Evolution and Transformation. International Journal of Contemporary Hospitality Management 22:736-757.

Longhi, C. 2009 Internet and Organization of the Industry in Tourism: A Focus on the Distribution of Travel and Tourism Services. International Journal of Leisure and Tourism Marketing 1(2):131-151.

Werthner, H., and S. Klein 1999 Information Technology and Tourism – A Challenging Relationship. Vienna: Springer.

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Youcheng Wang & John Kracht

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Wang, Y., Kracht, J. (2014). Distribution channel, tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_60-1

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