Chapter 7 Questions

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Taylor Gudenkauf

Domestic and International Tourism

19 March 2020

Professor Whitley

Chapter 7 Questions

1. As a producer of travel products, why not just sell your services directly to the consumer?

You can obtain a greater reach of customers by utilizing intermediaries, thus it is worth it to pay

them commission.

2. Why has the Internet become the most important tourism distribution channel?

The Internet has become the most important tourism distribution channel as there has been

advances in technology, growth in e-commerce, social media, and smart phones. Therefore, it

allows for distributors to reach more customers. The Internet can be a way to bypass product

and service intermediaries and deal directly with customers. It also offers low cost ways to

connect with customers.

3. Give some examples of marketing aids that a supplier might provide to a travel agency.

A supplier could provide a travel agency with brochures, photo books, discounts, package

bundles, etc.

4. Some counselors are not really good salespersons. As manager of your agency, what skill-

building program would you inaugurate?

I would have my counselors watch webinars and attend trainings. I would give them annual

reviews and offer incentives to the best salesperson.

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5. You are marketing director for a cruise line operating truly luxurious ships. It has a superb

service and cuisine. How would you proceed to identify the most promising distributors?

I would identify distributors who upheld the same ideologies and standards. I would look for

ones with reputable names that can show their success.

6. What do receptive service operators do?

Receptive service operators handle inbound package tour business. They advise international

tour operators in choosing itineraries and travel experience and then assist in organizing the

details of the trip.

7. As the president of a newly formed tour company, you must now decide if your tours are to

be marketed through retail travel agencies or whether you should try to sell them directly to the

consumer. Identify the advantages and disadvantages of each alternative. Would it be wise to

do both? Discuss.

As the president of a newly formed tour company, I would market them through retail travel

agencies so I have a greater reach. Advantages of selling directly include the elimination of

travel agency fees, build relationships with new customers, and receive feedback on the client’s

experience. Disadvantages of selling directly include difficulty reaching new customers and the

cost of time on customer interactions. Advantages to using a travel agent include increased

visibility, expert recommendations, more resources, and support for the customer.

Disadvantages of using a travel agent include the service fees, may still need to further invest in

marketing, and potential restrictive terms in the contract.

8. Why should an independently owned and operated travel agency become affiliated with one

of the consortia, cooperatives, or franchise groups?

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Independently owned and operated travel agencies should become affiliated with consortia,

cooperatives, or franchise groups, because they have large clients. These organizations increase

buying power, commissions, and amenities available to clients.

9. What do you see as the future of the travel agent?

Travel agents will be declining in the future to the simplicity and accessibility of booking trips

online individually. They will probably still be used for group, corporate, and luxury/celebrity

travel.

11. What do travel aggregators do?

Travel aggregators search for deals and prices across multiple websites and show you the results

in one place which makes it easier for comparison.

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