Distribution du groupe Channel

Distribution is an important element of the marketing mix (Place) but it’s often difficult to understand the role of the distribution in the service marketing.

One of the decisions that must be made by hotels and tourism companies concern the use of intermediaries (for the services): wholesalers/Retailers (ex: tour operator/Agent de voyage)

Channel strategy

The main objective of the distribution function is to get product and services to consumer:

- Where

- When

- How

the consumer prefer

Channel organization must be may with regard to Channel WIDTH (largeur) and Channel LENGTH (longeur).

Channel width is based on the desired amount of market coverage basically 3 channels width strategy are employed by company:

- Exclusive distribution → where a company limits the availability of the product or service to one particular outlet. It’s very common in the hospitality industry

For example: a restaurant has a single unit of operation / George V in Paris.

- Selective distribution → where a company uses more than one outlet but restricts availability of the product or the service to a limited number of outlets.

For example: In the hospitality industry, many companies limit market coverage based on geographic segmentation. Four seasons have a limited number of hotel that are located in large city while other operate in limited area/region.

Hard Rock café

- Intensive distribution → where a company attempt to make products and services available throw as many outlets as possible. This is a common approach among franchise operations. Most airlines and car rental agencies use intensive distribution as well.

Channel length decision is based on the number of intermediaries between the manufacturer and the customer.

In the case of services the channel is usually short because production and consumption are simultaneous. Consumer must be present to consul the service such as airline transportation, a meal or a hotel.

The channel can be direct or indirect.

Direct → manufacturer to consumer

Indirect → with intermediaries

Who are the must common intermediaries in the hospitality or tourism industry?

- Travel agent → responsible for a large volumes of sales, booking for airline, hotel, car rental for leisure and business travelers

- Tour wholesaler / Tour operator → they contract with hostility and tourism companies to get services that can be combine in a package

- Meeting planner

- Hotel representatives → large hotel have sales staff. They negotiate with the meeting planner too.

- Destination marketing organizations (DMO) → each tourism city should have a destination marketing organization that is responsible for promoting

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