Chain of Distribution in Travel and Tourism

What is the chain of distribution?

• The process of transporting goods and services to customers

• The series of companies involved in manufacturing goods

• The process of storing goods in a warehouse

Which level of the chain of distribution represents the core elements being sold to the consumer?

• Principals

• Wholesalers

• Retailers

• Consumers

Who are the people responsible for packaging the product in the chain of distribution?

• Principals

• Wholesalers

• Retailers

• Consumers

Which type of company is the biggest wholesaler in the travel and tourism industry?

• Tour operators

• Travel agents

• Hotels

• Airlines

What are the most common retailers in the travel and tourism industry?

• Tour operators

• Travel agents

• Hotels

• Airlines

Who are the people that purchase the products and/or services in the chain of distribution?

• Principals

• Wholesalers

• Retailers

• Consumers

Which level of the chain of distribution is represented by travel agents?

• Principals

• Wholesalers

• Retailers

• Consumers

In the chain of distribution, what type of business are Hilton and Marriott Hotels?

• Producer (principals)

• Wholesaler

• Retailer

• Consumer

True or false: a company can be both a wholesaler and a retailer in the chain of distribution?

• True

• False

Answer explanation

True - the likes of Kuoni and TUI are wholesalers but also have retail stores

What is it called when a company buys another business in a different level of the chain of distribution?

(ie Hotel buys a travel agency)

• Vertical integration

• Horizontal integration

• Inward integration