Competition Between Tourism Distribution Systems - myassignmenthelp

Question: Write about the Competition Between Tourism Distribution Systems. Answer: Introduction Tourism industry plays a vital role in the growth and development of nations GDP and therefore the sector presents great opportunities for investment for both the government and the private sector. The travel and tourism industry has indeed become a major source of wealth creation for many nations and due to this fact it has attracted the interest of many investors both from the government sector as well as the private sectors (Weidenfeld et al., 2014). As a result of this, the industry has grown its competitive nature and especially between the government and the private investors with the industry encouraging the partnerships or the involvement of the two sectors in the growth and development of sustainable tourism business. One of the salient features of the industry has been the tourism distribution systems which have been developed to enhance the operations of the industry in service provision. Both the private sector and the government or the public sectors have therefore inves ted in the development of tourism distribution systems or channels a move that has increased competition in the industry. This essay, therefore, seeks to analyze competition between government and the private sector within the Tourism Distribution Systems. A brief understanding of Tourism Distribution Systems Tourism distribution systems can be understood as an operating structure, a linkage or a system of a number of combinations of an organization or industry, through which a company product describes, sells or even confirms a travel arrangement to the buyer (Li et al., 2015). It can therefore be seen as an approach or strategy developed by the tourism industry to offer an online platform in tourism distribution and technology systems that connects different customers or clients in the industry, websites, and tourism operators as well as travel agents to a wider range of tourism travel products and their packages using the distribution and technology systems. The development of the tourism distribution systems was due to the fact that internet has become a very powerful marketing tool in business development and has been found to increase the scope and reach of consumers as well as facilitating them to make choices from hundreds of options or even research destinations the system offers consumers and corporate buyers or clients and customers access to different offers made by the suppliers and therefore supports the argument that distribution indeed has become a critical aspect in enhancing the ability of the tourism 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 as provide a basis for competition among the service providers in the sector or even the suppliers and therefore enables their clients or customer both potential and existing one to compare offers from a wide variety of suppliers (Frew Williams, 2 014). Therefore the development of the tourism distribution system is important in the tourism industry since these companies or the key players in the industry deal with services which are in most cases intangible, perishable and also because the industries or companies operate globally. Competition between the government and the private sector within the tourism distribution system Competition in an industry between different sectors can either be advantageous to the growth of the industry or even have a negative impact on the growth of the industry. Competition in the Tourism industry has continually increased due to the growth of the industry and its ability to create wealth for the nation (BADER, 2017). The productivity of the industry and the returns on investment has increased leading to many investors investing heavily in the industry. Service provision is seen as the heart of the industry and therefore competition in the industry has been focused on customer service delivery and ability to maintain rapport with different clients. Client or customer satisfaction has been the industry core challenge due to the changing tastes and preferences of consumers as well as the existence of many players unlike before when the industry was dominated by the government agencies alone and tourism was only seen as revenue collection opportunity for the government (de Ca rlos et al., 2016). However, with increased privatization, the government has been able to allow the private sector to venture into the industry and has, in turn, led to increased competition which has greatly influenced the success of the industry in terms of service provision. The development of the tourism distribution system was a competitive strategy to enhance the performance of the industry through increased and improved service delivery. Therefore one of the major competition areas between the government and the private sector in the development of the distribution systems was in the area of provision and financing of tourism infrastructure or in the financing of the development of the distribution systems (Dziuba, 2016). The public sector has been reluctant in adopting innovative techniques and sometimes the budgeting off such a measure takes a very long time before implementation and therefore faces competition from the private sectors that are always opportunistic in taking chances which will give them a competitive advantage in the industry. Therefore the private sector has greatly developed its tourism distribution systems through the development of websites which are customized to meet specific consumer needs. The government or the public secto r has lagged behind in adoption and implementation of the effective supportive structures which will improve the existing distribution channels whereby the public sector has been relying on the use of the travel agents and therefore calls for improvement as these travel agents may not be effective enough in meeting the demands of their consumers (Ivanova, 2017). The private sector has greatly invested in the development of tourism infrastructure through the establishment of customer or client-centered mechanisms which a diversified into different consumers interests and others to the targeted consumers. As much as the government or the public sector has equally invested in the industry in the development of the appropriate structures the private sector has been more dynamic and diversified which has enabled them to become serious competitors to the public sector. Competition on the Tourism industry between the government and the private sectors has also increased due to abilities of the sectors to innovate new products and services which will help them attract more customers through their online platforms (Akura et al., 2015). The private sector has invested more in new innovation in the industry by coming up with strategies which will help the companies meet the existing market gaps in the industry. They have improved their websites by customizing them and allowing a display of their offers where the consumers of clients can have a look at them and compare with those of other companies. In this way, they can determine or evaluate what other companies are offering and innovate products and services which will give them a competitive advantage in the industry. On the other hand, the public sector has lagged behind in adopting innovation through the use of improved and advanced technology (Coshall et al., 2015). They are still using the travel agents and tours and have over-relied on them and in their capacity to offer quality services to the tourist. Lack of innovative power by the public sector in the tourism industry has made their services so common to the tourists who have different tastes and preferences and therefore they keep demanding for more quality services (Mehdi, 2017). However despite the competition occurring in the industry both the private sector and the public sector are encouraged to partner together in improving the tourism distribution systems. This will help in promoting fair competition in the industry which is healthy for the industry. This is because both the private firms as well as the government bring or ad distinct advantages in the development of the tourism industry. Conclusion Tourism distribution systems, therefore, play a very important role in growth and development of the tourism industry. A healthy competition in the industry between the public and the private sectors is encouraged. Both the sectors should partner together in developing systems which will help in improving service provision in the industry which will lead to increased profitability of the private sector as well as increased GDP on the side of the government (Desai Eric, 2015). An effective tourism distribution system will, therefore, influence the behavior of customers positively towards the company tourism products and therefore determines the ability of the industry to respond to customer or consumer requests efficiently. The system should be simple to use and able to meet the demands and concerns of the both prospective and existing consumers of their services. The system should promote effective online interactions with the consumers and the company. Competition should, therefore , be fair to the government and the private sectors so that the tourism industry can grow and improve in terms of service provision. References Akura, M. T., Ozdemir, Z. D., Rahman, M. S. (2015). Online Intermediary as a Channel for Selling Quality-Differentiated Services. Decision Sciences, 46(1), 37-62. doi:10.1111/deci.12116 BADER, S. (2017). A New Concept in Promoting Tourism: Thematic Evenings. 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