CABI TOURISM TEXTS
                   CABI TOURISM TEXTS
                     Chapter 3
               Travel Intermediaries 
            and Information Technology
                   CABI TOURISM TEXTS
                   CABI TOURISM TEXTS
   Chapter 3 Learning Objectives
   After studying this chapter you should be able to:
   1. Explain, compare and contrast traditional and digital tourism 
     distribution systems;
   2. Understand the evolution, role and features of Global 
     Distribution Systems (GDSs) as travel intermediaries;
   3. Analyze the challenges faced by GDSs as a result of 
     technological change and innovation;
   4. Explain how traditional travel retailers use IT;
   5. Explain how IT has led to disintermediation and evaluate how 
     this has impacted travel intermediaries;
   6. Describe and critically evaluate the different types of online 
     travel intermediaries that have developed as a result of IT; and
   7. Explain how tour operators can use IT to improve productivity 
     and competitiveness.
                    CABI TOURISM TEXTS
                    CABI TOURISM TEXTS
    Key Concepts
     Travel distribution system
     Computer Reservation System(CRS)
     Global Distribution System (GDS)
     GDS New Entrant (GNE)
     New Distribution Capability (NDC)
     Tour Operators and Wholesalers
     Travel Retailers
     Online Travel Agents (OTA)
     Channel Managers
                                                        4
                                                             CABI TOURISM TEXTS
                                                             CABI TOURISM TEXTS
                      S
                      S
                      R
                      R                                                                                Car                 Activities
                      E                                                                                Car                 Activities
                      E
                      I
                      I         Airlines                 Rail                  Cruise                                                               Hotels
                      L         Airlines                 Rail                  Cruise                                                               Hotels
                      L                                                                               Rental               & Events
                      P                                                                               Rental               & Events
                      P
                      P
                      P
                      U
                      U
                      S
                      S
                                                                   Supplier Reservation Systems (CRS, ARS, PMS)
                                                                   Supplier Reservation Systems (CRS, ARS, PMS)
                      S
                      S
                      N
                      N
                      O
                      O
                      I
                      I
                      T
                      T
                      C
                      C                                                                               Global Distribution System 
                      E                                                                               Global Distribution System 
                      E                                                                                                                              Switch
                      N                                                                                                                              Switch
                      N                                                                                          (GDS)
                      N                                                                                          (GDS)
                      N
                      O
                      O
                      C
                      C
                      S
                      S                                                                                            Tour Operator / Wholesaler
                      G                                                                                            Tour Operator / Wholesaler
                      G
                      N
                      N
                      I
                      I
                      K
                      K
                      O
                      O
                      O
                      O     Point of Sale (POS)          Call Centre           Traditional Travel Agent
                      B     Point of Sale (POS)          Call Centre           Traditional Travel Agent
                      B
                           FIGURE 3.1 Traditional Travel Distribution System
                                                                                                                                                                         5
                                                   CABI TOURISM TEXTS
                                                   CABI TOURISM TEXTS
                S
                S
                R
                R                                                                    Car              Activities
                E                                                                    Car              Activities
                E
                I
                I        Airlines             Rail               Cruise                                                    Hotels
                L        Airlines             Rail               Cruise                                                    Hotels
                L                                                                   Rental            & Events
                P                                                                   Rental            & Events
                P
                P
                P
                U
                U
                S
                S
                                                        Supplier Reservation Systems (CRS, ARS, PMS)
                                                        Supplier Reservation Systems (CRS, ARS, PMS)
                S
                S
                N
                N                                                    Channel Manager        Switch
                O                                                    Channel Manager        Switch
                O
                I
                I
                T
                T
                C
                C
                E
                E
                N
                N
                N
                N
                O
                O                    Internet Booking           GDS New              Global Distribution     Destination Management 
                C                    Internet Booking           GDS New              Global Distribution     Destination Management 
                C
                                       Engine (IBE)           Entrants (GNE)           System (GDS)               System (DMS)
                                       Engine (IBE)           Entrants (GNE)           System (GDS)               System (DMS)
                                                                                        Tour Operator       Travel Management 
                                                                                        Tour Operator       Travel Management 
                                                                                         Wholesaler           Company (TMC)
                                                                                         Wholesaler           Company (TMC)
                S
                S
                G
                G
                N
                N
                I
                I
                K
                K             Call Centre                           Online Travel Agent (OTA)      Meta Search          DMO Website
                O             Call Centre                           Online Travel Agent (OTA)      Meta Search          DMO Website
                O
                O
                O
                B
                B
                       Point of Sale (POS)    Supplier Website    Social Media     Mobile App      Affiliate   Traditional Travel Agent
                       Point of Sale (POS)    Supplier Website    Social Media     Mobile App      Affiliate   Traditional Travel Agent
                          FIGURE 3.2 Digital Travel Distribution System
                                                                                                                                              6