ABSTRACT
In terms of delivering a product to the point of sale, distribution refers to the tourism reservation mechanism. Distribution channel intermedi aries for tourism services include tour wholesalers, travel agencies, and airlines. Intermediaries often represent the most effective means of reach ing travellers, but at the same time can be one of the highest oper ating costs. Commission to intermediaries represents the distribution cost. Apart from operating local VICs, most DMOs leave reservation systems
to the private sector. DMOs have moved away from operating a wholesale business, to focus efforts on marketing. One exception to this is Tourism Northern Territory in Australia (see www.holidaysnt.com/specials). Oper ating a wholesale business has political implications relating to the selec tion of businesses included in the packages.
