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Evaluate The Effectiveness Of A Distribution Channel Involving Only Retail Travel Agencies

In order to effectively evaluate the effectiveness of involving only retail travel agencies instead of a combination of travel agencies and tour operators, one must first examine what constitutes a tour operator and a travel agency:
Tour operators are businesses that specialize in manufacturing and selling holiday travel packages for large groups. Due to the fact that tour operators operate by booking hotel rooms and creating packages in advance of the consumption date, they cannot cater to the business segment and therefore focus on the leisure market. This is because business travelers require flexible itineraries on short notice, which cannot be provided by tour operators for reasons just explained. Thus, a tour operator makes profit by selling in large numbers, and is therefore considered a wholesaler. In order to make the packages attractive to customers, tour operators are given discounted hotel room rates that may then be combined with aspects such as flights,......


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Approximate Word Count: 648
Approximate Pages: 3 (250 words per double-spaced page)

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