Deck 13: Distribution Organizations

Question 1

The National Tour Association is a trade organization of thousands of tourism professionals that consists of the following types of members except:

A) tour operators who develop and sell travel packages.
B) tour suppliers who provide the package for tour operators.
C) student and travel schools.
D) destination marketing organizations DMOs) such as CVBs.

Answer 1

C

Question 2

The acquisition of a travel agency chain by a hotel company would be an example of:

A) travel trade marketing.
B) exclusive distribution.
C) vertical integration.
D) horizontal integration.
E) intensive distribution.

Answer 2

C

Question 3

This is a key feature of the tourism distribution system.

A) There are more retail travel agencies than suppliers.
B) There is no direct distribution in tourism.
C) The wholesaling and retailing functions are done by the same companies.
D) Cruise lines are carriers and not suppliers.
E) There is no physical distribution.

Answer 3

E

Question 4

This is an important feature of the economics of tour wholesaling.

A) Fixed costs are greater than variable.
B) Low returns on equity are likely.
C) Cash flow is not important.
D) It has relatively low barriers to entry.
E) The average return on sales is high.

Question 5

This is not a typical example of tour wholesalers:

A) American Express company
B) Sabre
C) Thomas Cook
D) both A and B

Question 6

This is not a typical example of tours that travel agents book.

A) escorted tours
B) foreign independent tours FIT) and domestic independent tour DIT)
C) group inclusive tours
D) special interest tours
E) FAM tours

Question 7

Which of the following is not a typical function of tour wholesalers?

A) tour administration
B) tour evaluation
C) tour marketing
D) tour hosting
E) tour planning and preparation

Question 8

This is not an example of the most important computerized global distribution systems.

A) Worldspan
B) Amadeus
C) Expedia
D) Galileo
E) Sabre

Question 9

Tour operators offer the following main types of tours except:

A) hosted tours.
B) business trips.
C) independent tours.
D) package tours.
E) escorted tours.

Question 10

These are the clients of incentive travel planners.

A) tour wholesalers
B) individual travelers
C) government agencies
D) retail travel agencies
E) private companies

Question 11

The price difference for the classes of fares depends mainly on the following except:

A) passenger seating space.
B) sections of the plane.
C) cost of meals served.
D) the destination the plane goes.
E) level of attendant service.

Question 12

This distribution strategy involves a supplier or wholesaler in maximizing the exposure of their products through all available intermediaries.

A) selective
B) exclusive
C) direct
D) intensive

Question 13

Depending on location, airfares may be higher on Monday, lower on Wednesday, and downright cheap on Saturday. This reflects which of the following travel patterns?

A) incentive travel
B) leisure travel
C) business travel
D) family travel

Question 14

This is not one of the world's largest travel agencies that prepare for incentive programs for a company's employees.

A) Rosenbluth International
B) Thomas Cook Group
C) American Express
D) Carlson Wagonlit
E) Navigant International

Question 15

When suppliers and carriers employ indirect distribution, this means that they use:

A) horizontal integration.
B) advertising and promotion.
C) travel trade intermediaries.
D) selective distribution.
E) sales representatives.

Question 16

These are the most influential trends in the travel agency industry except:

A) the creativity and new ways of doing business invented by travel agents as response to the cut in commissions from airlines, hotels, and other providers.
B) the increasing amount of online travel services.
C) the promising growth of travel agents over the recent years.
D) mergers and acquisitions.

Question 17

These were formed to help large corporations to make sure corporate policies are followed and the lowest possible fares are obtained.

A) travel management departments
B) travel consolidators
C) tour wholesalers
D) incentive travel planning companies
E) retail travel agencies

Question 18

The core concept of yield management is to provide the following except:

A) to the right customers.
B) the right service.
C) at the right time.
D) with the right travel agents.
E) for the right price.

Question 19

This is not one of the largest travel agencies today.

A) Hotwire
B) Navigant International
C) American Express
D) Carlson Wagonlit

Question 20

This travel trade intermediary negotiates for corporations the most competitive prices on airlines, hotels, and car rental companies.

A) incentive travel planner
B) online travel company
C) corporate travel departments
D) consolidator
E) retail travel agency

Question 21

To avoid paying commissions to travel agents and online booking services, hotels are now trying to:

A) drive potential guests directly to their websites.
B) contract with CVB and Chamber and Commerce.
C) sell their inventories to tour wholesalers.
D) adopt vertical integration and purchase travel agents.

Question 22

The automated back- office systems facilitate many small- and medium- sized travel agencies in the following manners except:

A) conduct low- fare searches in the GDS.
B) hire more staff.
C) automate the fulfillment of e- tickets and e- mail the itineraries to the travelers.
D) introduce quality controls.

Question 23

The following reflects some of the complexities that affect airline fares except:

A) the size of family.
B) advance purchase excursion fairs.
C) economy.
D) excursion rates.
E) youth fares.

Question 24

In reaching agreement with Yahoo! to handle Yahoo consumer booking, the global distribution systems Sabre and its subsidiary Travelocity are practicing:

A) vertical integration.
B) strategic outsourcing.
C) strategic alliance.
D) horizontal integration.