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Home / Business Operations / Marketing / Sales and Distribution
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Sales and Distribution

Reaching time-poor consumers in an increasingly competitive market remains the greatest challenge facing tourism enterprises. The tourism distribution system provides a vast array of channels from travel wholesalers, to retailers, agents and inbound tour operators each requiring time and resources from enterprises to secure their services and support. Read more

Reaching time-poor consumers in an increasingly competitive market remains the greatest challenge facing tourism enterprises. The tourism distribution system provides a vast array of channels from travel wholesalers, to retailers, agents and inbound tour operators each requiring time and resources from enterprises to secure their services and support. The boom in online travel planning and booking has created a growing new channel to reach customers, however the internet presents even more complexity to travellers who are now looking to search, compare and book a range of products.

Business Operation Tip

Businesses need to honour their distribution systems by not selling their products at a discounted price (minus commission) through other avenues such as their own website. This ensures that the distribution system can work effectively.

Working with distribution partners that sell your product to new customers can for many businesses provide up to 30% of all bookings (for some businesses 50%). Understanding which distributors are right for you is complex, but essential. More essential is tracking the performance of these distributors and honouring your distribution price contracts by not selling products at discounted rates.


The Australian Tourism Data Warehouse is an excellent example of a distribution partner that can assist you in reaching customers online.


Research by the STCRC into the sales and distribution network highlights that an effective strategy should include:

  • An understanding of the right distributor for your product and target market. There is a wide range of support available for businesses in choosing distribution partners including working with Tourism Organisations and Associations such as the Australian Tourism Exchange Council (ATEC);
  • Your work doesn’t end once you have a contract in place, businesses need to retain regular contact with distributors to update them on new products, pricing changes, and new opportunities;
  • Evaluate the success of your sales and distribution techniques and adapt;
  • Working in the international market can be expensive if working alone. Discuss your plans with your Tourism Organisation to see if an Inbound Tour Operator, International Wholesalers, Retail Travel Agent or International Agent would be a potential partner for your business;
  • An increasing number of visitors are using the internet for all of their travel planning needs, including information seeking, holiday / route planning and booking transport, accommodation and tourism-related products. Choosing the right online partner is at least as complex (if not more) than the traditional distribution system and requires an equal investment in time and resources;
  • Customers want to create a ‘connection’ with the place. The use of 'new media' such as Customer Relationship Management systems, email marketing, IT systems and real-time web reservation services are an increasingly important aspect of effective marketing and sales; and
  • Online booking and reservations systems can increase overall bookings if a website is user friendly, regularly updated and search engine optimised.

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