ABSTRACT
For a product marketer, distribution refers to the logistics involved in the physical movement of goods from the place of manufacture through various channels to the point of sale. In services marketing, however, distribution is a lot different. The concepts of immovability and inseparability mean intangible destination experiences are consumed at the place of production, with both the tourism provider and the consumer needing to be present for the service to be delivered. Tourism distribution represents the cost of getting a sale, commonly through a commission payment to a travel trade intermediary, such as a tour wholesaler, online travel agent, or airline. While some of the earlier DMOs were directly involved in the selling of destination travel packages as wholesalers and/or retailers, this is not often the case today except for visitor information centres. Instead, the DMO acts as an information broker, liaising between destination service providers and travel intermediaries through a range of trade events and educational initiatives. The power balance in the tourism distribution system is undergoing change through the democratisation of the internet for consumers, and the resultant disintermediation in the supply chain through the rise of online bookings. This more complex world is providing new distribution opportunities and challenges for DMOs and their service providers.
