Tourism Intermediaries and Distribution
Added on 2020-05-11
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Running Head: COMPETITION WITHIN TOURISM DISTRIBUTION SYSTEMS 1Competition between the government and the private sector within Tourism DistributionSystemsNameInstitution
COMPETITION WITHIN TOURISM DISTRIBUTION SYSTEMS2IntroductionTourism industry plays a vital role in the growth and development of nations GDP andtherefore the sector presents great opportunities for investment for both the government and theprivate sector. The travel and tourism industry has indeed become a major source of wealthcreation for many nations and due to this fact it has attracted the interest of many investors bothfrom the government sector as well as the private sectors (Weidenfeld et al., 2014). As a result ofthis, the industry has grown its competitive nature and especially between the government andthe private investors with the industry encouraging the partnerships or the involvement of thetwo sectors in the growth and development of sustainable tourism business. One of the salientfeatures of the industry has been the tourism distribution systems which have been developed toenhance the operations of the industry in service provision. Both the private sector and thegovernment or the public sectors have therefore invested in the development of tourismdistribution systems or channels a move that has increased competition in the industry. Thisessay, therefore, seeks to analyze competition between government and the private sector withinthe Tourism Distribution Systems.A brief understanding of Tourism Distribution SystemsTourism distribution systems can be understood as an operating structure, a linkage or asystem of a number of combinations of an organization or industry, through which a companyproduct describes, sells or even confirms a travel arrangement to the buyer (Li et al., 2015). Itcan therefore be seen as an approach or strategy developed by the tourism industry to offer anonline platform in tourism distribution and technology systems that connects different customersor clients in the industry, websites, and tourism operators as well as travel agents to a wider
COMPETITION WITHIN TOURISM DISTRIBUTION SYSTEMS3range of tourism travel products and their packages using the distribution and technologysystems.The development of the tourism distribution systems was due to the fact that internet hasbecome a very powerful marketing tool in business development and has been found to increasethe scope and reach of consumers as well as facilitating them to make choices from hundreds ofoptions or even research destinations the system offers consumers and corporate buyers or clientsand customers access to different offers made by the suppliers and therefore supports theargument that distribution indeed has become a critical aspect in enhancing the ability of thetourism industry to achieve its profitability goals or levels and market share (Shi & Li, 2014).The system supports the industry to offers aimed at their clients by other companies as well asprovide a basis for competition among the service providers in the sector or even the suppliersand therefore enables their clients or customer both potential and existing one to compare offersfrom a wide variety of suppliers (Frew & Williams, 2014). Therefore the development of thetourism distribution system is important in the tourism industry since these companies or the keyplayers in the industry deal with services which are in most cases intangible, perishable and alsobecause the industries or companies operate globally.Competition between the government and the private sector within the tourismdistribution systemCompetition in an industry between different sectors can either be advantageous to thegrowth of the industry or even have a negative impact on the growth of the industry. Competitionin the Tourism industry has continually increased due to the growth of the industry and its abilityto create wealth for the nation (BADER, 2017). The productivity of the industry and the returns
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