Distribution

Front 1

Distribution channel

Back 1

- the route your product follows toward the market

Front 2

Distribution channels for coca cola

Back 2

- vending
- retail (convience stores)
- fountain soda
- alternate

Front 3

Does distribution differ from manufacturing vs hospitality?

Back 3

- Yes.
- Manufacturing- the product is transported from the factory to the customer
- Hospitality- the customer is transported from their home to what is in effect the factory

Front 4

What are distrbution channels for hospitality?

Back 4

1. direct channel
2. travel agents
3. tour wholesalers
4. specialists
5. hotel reps
6. tourism offices
7. consortia
8. gds
9. reservation systems
10. internet

Front 5

direct channel

Back 5

- if you somehow get a hotel or restaurant product without using an intermediate like a travel agent
- corporate website- four seasons
- 1800 hilton- CRS
- corporate group sales, group bookings

Front 6

travel agents

Back 6

- predominant in the cruise industry
- weird industry: all inclusive, specific itinerary
- declining usage in booking of hotels and flights
- internet took a toll on this

Front 7

tour wholesalers

Back 7

- usually leisure
- may have retail front end (TNT vacations)
- not a provider, intermediary, wholesaler because they are giving a package

Front 8

specialists

Back 8

- incentive or motivational travel
- buyer is a company
- traveler is an employee
- not for business, for good performance
- ex: sales

Front 9

hotel representatives

Back 9

- individual contract sales people
- small firms
- independent hotel or small chains across long distances

Front 10

Tourism offices

Back 10

- government or non-profit
- usually don't do bookings, but they may
- ex: Boston USA

Front 11

Consortia

Back 11

- do not own or run hotels, separate organizations that you can pay to join
- independent hotels share marketing expenses
-deal with luxury hotels and marketing
- small luxury hotels of the world- hotel commonwealth
-relais chateaux- white barn inn

Front 12

global distribution systems

Back 12

- large computerized reservation systems
- not apparent to consumers
- used to be airline CRS
- American airlines- SABRE
- United- Galileo
- called United and want to book flight and car, Galileo communicates with Hertz

Front 13

reservation systems

Back 13

- companies that outsource CRS function
- not apparent to consumers
- no retail front end
- scepter

Front 14

internet

Back 14

- 3rd party
- not direct
- fourseasons.com is direct
- travelocity is internet

Front 15

distribution channels for restaurants

Back 15

- direct
- concierge
- internet

Front 16

Direct

Back 16

- vast majority of restaurants use direct distribution channel
- you walk in or call them to make a reservation

Front 17

concierge

Back 17

- a lot of travelers will find their way to the restaurant through the concierge
- usually a fine dining thing
- hotel doesnt want concierge to be biased but restauraunt does
- bribing not illegal but there is some sort of code

Front 18

internet

Back 18

- can be direct or indirect
- capitalgrille.com is direct
- opentable.com is indirect like travelocity but for restaurant

Front 19

channel conflict

Back 19

- different entities in the same channel have conflicting interests
- ex: orbitz wants pricing flexibility and Ritz doesnt want price to go too low because of positioning

Front 20

multi-channel marketing

Back 20

- using multiple channels
- seller-intermediary- consumer
- do not care who intermediary is

Front 21

Mcdonalds case study

Back 21

- have to grow, should they diversify in order to do so?
- go into hotel industry or not?

Front 22

if yes, issues to decide

Back 22

- have to decide what segment, target market
- location
- brand extension - Mcdonalds segment or SBU
- concept development- creating something new or just buying someone elses