Hospitality and Tourism Distribution

Discuss about the Hospitality and Tourism Distribution.

Introduction

In the current business setting, it is necessary that one understands the different ways that their products can be sold to their potential customers to ensure the sustainability of the company. Although most of the customers will reach to a company themselves, different distribution channels are necessary to ascertain on the way the customers can impact on the products and their costs. Tourism is one sector that may need quite good distribution channels to allow a company offer better services in the region of operation and to satisfy their clients for a sustainable and longer working relationships (Liao & Tseng, 2008). In Australia, tourism is one of the businesses that needs better distribution channels to allow customers reach the company at ease. Globus, a tour company in Australia is well known for its dedicated and high class services offered to the clients visiting the country. Australia being a huge country, people could spend days in the airports not knowing where to go to, however, Globus have been there to take the clients and tourists to the best visit places. It has been recognized that the distribution channels are the way to get the services of a company reach the diverse range of clients effectively and how they pay for these services. The transaction could be direct or might as well involve the third party resellers. In this project, the focus will be on the distribution channels used by Globus tours in Australia to reach out to its clients, recommendations on how to improve these channels and the use of technology in enhancing the improvements (Kim & Connolly 2012).

Globus Tours; Australia

Globus tours are Tour Company that operates in mainly Australia and New Zealand and have other leafs in other states. It is an international company that serves multiple of customers from around the world. The company has been a success in Australia rated as one of the lively tour company in the country servicing its esteemed customers to their satisfaction. Globus, a tour company in Australia is well known for its dedicated and high class services offered to the clients visiting the country (Izhar Bar-Gad et al., 2015). Australia being a huge country, people could spend days in the airports not knowing where to go to, however, Globus have been there to take the clients and tourists to the best visit places. The company has had strategic measures that have seen it serve its customers to their satisfaction and making the name of the company appear among the list of the successful tour companies in Australia. Global tours is said to introduce visitors around Australia to the hidden gems and the activities that are “behind the scenes” that includes the outback barbeque that is featuring on the stories about the outback and the aboriginals (Kracht & Wang, 2010). Through the online reservation companies that Globus uses as its distribution channels, the clients get to book specific places they would wish to tour around the country online making its services easier and quicker. The tour activities, a company would have to meet certain requirement to meet the criteria. Once Globus ensures that they meet the criteria to use the websites, the distribution channels could easily market the company and clients would find it necessary to make reservations with retailers meeting the government requirements. This and other elements such as the use of technology to advance its systems have helped Globus to be an outstanding tour company in Australia (Inversini & Masiero, 2014).

Do The Strategies By Globus Adhere To The Distribution Channels Theories?

The strategies applied by Globus tours in its operations are seen to be within the theories of the distribution channels. The retail strategies by the firm are seen to influence the firm’s business activities and their responses to the market forces. One, the company is focused on its growth. The business has been guided all through by the principles formulated to enhance the long-term performance (Sigala, 2007). The dedication of the company to these strategies is a promoter to the consistent growth and the market share gains. For the company, managing the business is a key to a continued annual growth. Globus tours is also seen to be appealing to the prime market where it is seen to be strong with the middle-income and well educated adults with income 20% higher than the normal rate. The other strategy of the company is the use of its distinctive image to positioning of the business (Garin-Munoz & Perez-Amaral, 2010).

On the context of its focus, the chain has never lost sight of its discount store niche. The strategic direction of the management is seen to be clear; to be continuing delighting their guests while at the same time investing in their technology and leveraging its resources throughout the company to enhance the performance. The management is as well seen to be focusing on the customer service for its retail category. On this, Globus is seen to be proud on the services it is offering to its clients at a discount. Their employee relation is also as per the theories of the distribution channels (Kapiki, 2012). This enables a high performance where the employees participate in offering better services keeping in mind that the success of the business will also be their success and they will enjoy the benefits alongside the company itself. In terms of innovation and commitment to technology, Globus appears to have had long and embraced concepts on innovations where they seem to acknowledge the importance of creating their unique methods of reaching their customers by surprise. They are as well devoted to new technology changes where they employ the use of advanced technology to track and monitor their systems and as well as remote bookings and reservations (Hsu, 2012).

How Would Globus Improve On Its Distribution Channels?

It has been recognized that the distribution channels are the way to get the services of a company reach the diverse range of clients effectively and how they pay for these services. The transaction could be direct or might as well involve the third party resellers. There are certain things that when engaged by the tours company, their distribution channels would improve their services. One is that they have to be sure to use and make it a routine to engage in partnerships with the online travel agencies. These are some of the effective channels that would list the tour or the activities by the company on their site and give the information on how to the users could search for and click through to book and make reservations. The latter would be done through a pay-per-click system where the online travel agencies would make sure that they have whatever they need to promote their business. The distribution channels could also take advantage and use the government based-websites as channel o leverage (Huang, 2010).

The tour activities, a company would have to meet certain requirement to meet the criteria. Once Globus ensures that they meet the criteria to use the websites, the distribution channels could easily market the company and clients would find it necessary to make reservations with retailers meeting the government requirements. It will also be thoughtful for the company to apply the use of the visitor’s information centers that will be used to organize activities of the tour company for the visitors. It has been well known that many clients always go to the information centers to find out who are the best service providers of the tours and travel services (O’Connor, 2010). Once on the visitor’s information list, Globus stands a chance to be marketable and also be positively reviewed and earn marks. It is also found necessary that the company needs to develop certain measurement that would be tracking the performance. As with this, one would be able to know their best sales performers at every point in the channel and by tracking the orders, it will be possible to identify and improve the partners not performing effectively and keep the top performers happy (Kayak.com, 2009).

How Is Technology Involved In The Distribution Channels?

Technology has been used in the tour and hospitality industry for a long time now. There has been the automation of the systems used in the industry to make their services better. Globus tours have as well not been left out as it has shown a lot of improvements in the services offered through the use of technology in the operations. One, technology has made it possible for the clients to make bookings and reservations online. Through the introduce systems, client find it easier to make reservations at remote areas and do not have to get to the company’s premises to access their services. I the process of online bookings and reservations, the clients would need to pay some down payment of the whole amount as a commitment fee so that the reservation may be validated. As such they have to send their payments through the online money transfer systems that may at times be tricky and risky (Vienna et al., 2014). Technology, through the internet has allowed the companies using these services to enjoy the transfers through secure systems. There are certain applications developed to protect the clients and businesses from fraud during the process of the online transactions. This way, the both parties would not complain of the remote services offered and engaged in through technology influenced systems (Kalodikis & Yannakopoulos, 2003).

The Australian industry has used the inbound tour operators to enable their online system operations. The inbound operators had enabled successful services by assisting Globus in planning, product selection and the coordination of services. They are also responsible for the confirmation of payment of the travel for the clients from overseas. The inbound operators are also referred to as the grounds or destination management companies (Scaglione, Schegg & Tranichet, 2013). Through the use and aid of technology, the work of the inbound travel operators (ITOs) has been made possible as every activity they engage in is depended on the online platform to reach out to customers from different parts around the world. Two, tracking of services and open accommodations has been made easier through the online services influenced by the rapidly growing technology (Buhalis & Laws, 2001). The distribution channels can access the operational records by Globus and see where there are free accommodations or when the company is not quite busy and allocate clients day and time of their choice and also allocating them accommodations of their choice. As such, Globus being an international company, with working with the best distribution channels, has been able to reach out to many clients online through the help of the internet technology that has rolled out the older systems where clients had to reach the company premises to make reservations (Andrews, 2011).

SWOT Analysis

In the process of the research, there were many elements noted in the industry affecting the operations of Globus tour both positively and negatively.

Strengths

• Globus is a well-known brand as a result of the executive services it offers.
• The management of the company is well organized to offer exclusive services to its esteemed customers
• Globus values its customers more to offer them executive offers promoting its brand and sales.

Weaknesses

• The company is yet to find new strategic measures to enable it compete extensively with the upcoming opponents.

Opportunities

• The company has shown its quest to improvement and sustainability by taking advantage to the advancing technology to enhance its performance.

Threats

• The company is facing still competition from the opponents who are trying day and night to make their services equal.
• The rise of similar companies in the market leaves Globus with a challenge to find other strategies towards its sustainability.

Conclusion

Tourism is one sector that may need quite good distribution channels to allow a company offer better services in the region of operation and to satisfy their clients for a sustainable and longer working relationships. Australia being a huge country, people could spend days in the airports not knowing where to go to, however, Globus have been there to take the clients and tourists to the best visit places. The strategies applied by Globus tours in its operations are seen to be within the theories of the distribution channels. The retail strategies by the firm are seen to influence the firm’s business activities and their responses to the market forces. The strategic direction of the management is seen to be clear; to be continuing delighting their guests while at the same time investing in their technology and leveraging its resources throughout the company to enhance the performance. There are certain things that when engaged by the tours company, their distribution channels would improve their services. One is that they have to be sure to use and make it a routine to engage in partnerships with the online travel agencies. Technology has been used in the tour and hospitality industry for a long time now. There has been the automation of the systems used in the industry to make their services better. There are certain applications developed to protect the clients and businesses from fraud during the process of the online transactions. This way, the both parties would not complain of the remote services offered and engaged in through technology influenced systems.

References

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