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The hospitality industry - Industry developments in marketing and distribution

Q: What does a travel agent?

A travel agent is a travel broker (makelaar). The moment a customer inquires about a journey, they start searching and make an offer. The main source of income is a commission paid by their supplier. Focusses on holidays and the business market.

Q: What does a tour operator?

A tour operator buys capacity, like room nights or airline seats and tries to re-sell this to customers. Often the operator combines this capacity in holiday packages containing hotel stay, airline tickets, and transfers.

4 important questions on The hospitality industry - Industry developments in marketing and distribution

What does a travel agent?

A travel agent is a travel broker (makelaar). The moment a customer inquires about a journey, they start searching and make an offer. The main source of income is a commission paid by their supplier. Focusses on holidays and the business market.

What does a tour operator?

A tour operator buys capacity, like room nights or airline seats and tries to re-sell this to customers. Often the operator combines this capacity in holiday packages containing hotel stay, airline tickets, and transfers.

How does the tour operator have income?

The tour operators income come from their ability to negotiate large discounts with suppliers, and reselling at higher prices. They only focus on holidays.

What are the 2 problems of the growth of OTAs for hotels?

1. They (hotels) are afraid of losing contact with their loyal customers. Serious marketing issue because gaining new customers is harder than retaining existing customers.
2. The impact OTAs have on hotel profits. Through their high market share large OTAs have gained a near-monopoly position and are often able to dictate their prices and other conditions to hotels desperate to fill their rooms.
3. OTAs reflect a fundemental shift in the hospitality industry. The rise of OTAs signifies a shift away from providing hospitality to profit-oriented goals.