The tourism and travel industry is comprised of a complex, informal global network of independent businesses which form the 'travel distribution chain'. This network allows overseas consumers to research, book and pay for your Australian-based product.

Travel distributors allow you to broaden your customer base far beyond the reach of your own limited marketing budget. They are particularly important to the inbound tourism industry as overseas consumers still rely heavily on the advice of local travel experts when planning their Australian holiday, particularly in long haul and emerging markets.

Travel distributors can also provide insights and advice on international markets and suggest changes or improvements to your product that will help you meet the needs of your target market.

Buying your Product
The travel distribution system covers all the channels through which an international traveller can buy your product. Other than approaching you directly, international travellers may book your product via:

1. Local travel agents
2. Tour wholesalers/ operators that market directly to consumers (direct sellers)
3. Inbound tour operators or meeting planners
4. Online portals or individual Internet booking engines.

Distribution channels and consumer purchasing behaviour varies from market to market so you will also need to understand the structure of the distribution system specific to your target markets. Tourism Australia's market fact sheets provide more detail on the distribution system - the way consumers purchase travel - in each market. When considering how best to distribute your product to international consumers, it is important to understand each channel and the relationships between companies within the distribution channel.

How the Distribution System Works
The travel distribution system has traditionally been very structured, with clearly defined functions for each role in the chain. However as technology and company mergers transform the tourism industry, there is an increasing amount of cross-over in the roles and functions of various sectors of the distribution system.

The traditional structure of the distribution system includes Inbound Tour Operators (ITO's) based in Australia, tour wholesalers based overseas and the international retail agents, the link to the international consumer. However, this varies considerably from market to market. In some countries, such as Japan, the system is very structured while in other markets a structured system has not developed. Market fact sheets available on Tourism Australia's corporate website outline consumer travel purchasing behaviour in each market, as well as providing a detailed description of the structure of the travel distribution system in international markets.

Company mergers around the world have prompted an increase in the cross-over of traditional distribution roles. Structured marketing agreements and cross-ownership are common relationships. For example, it is not uncommon for an inbound tour operator to be part of a larger company that also operates a wholesale arm in an overseas market, or for a travel wholesaler to also operate the travel agencies that sell its packages. As the traditional distribution system continues to evolve, it is important to clearly understand the structure of the companies that you work with and their relationships with other organisations.

The Internet
The Internet has also changed the way consumers research and book travel, impacting the traditional structure of the distribution system. Many travellers use the Internet as an information tool when researching holidays, however, personal advice and recommendations from travel agents are still important, especially for long haul journeys. The proliferation of 'last minute' websites to move surplus accommodation and fares has also changed consumer booking patterns, resulting in shorter lead times for bookings, even in some long haul travel markets.

As the travel distribution environment changes, companies will need to take a more integrated approach to international product marketing, considering all the distribution options available and the way that your targeted consumers book travel products. This will allow you to develop an effective mix of distribution partners to reach consumers.

What are Travel Distributors Looking For?
Travel distributors seek product suppliers that can offer:

• Quality products and experiences
• Reliability (consistent operating hours and regular schedules)
• Efficient operations and procedures
• Friendly, helpful reservations staff
• High levels of customer service
• Stable operations
• Pricing policies that consider all levels of distribution
• Communication via email, toll free numbers and fax, and
• Fast and efficient turnaround and response times.

Building relationships and establishing your credentials takes time. Do not anticipate immediate results. The process of making key sales staff aware of your product, developing a new product range and brochuring a new product can take a minimum of 12-18 months.