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Does the Internet Benefit Small Travel Businesses?
When you think of the number of travel directories and websites available to travelers you would think that this is a world free of the normal conventions of business but unfortunately it is often bound by restrictions that travelers would not appreciate. Pricing of travel is one of the conventions that are not yet totally free of restrictions and understandably so due to distribution considerations.
Travel businesses using the traditional distribution chains for the sale of their products need to allow for the payments of commission to various levels of middlemen, Inbound Tour Operators, Wholesalers and Retailers, all who need to take a percentage for their efforts in enabling travel services and products to reach the consumer.
Websites however, reach directly to consumers and enable them to make direct bookings with travel providers but they can still incur the costs attributed to these middlemen. But, to place a two-tier price for each product could deter the agents from representing products so a new way had to be found. This is where TopTravelSites stepped in with their newly developed service for the travel provider who wants to continue with the traditional supply chain but also wants to encourage travelers who are comfortable with making their own arrangements directly with providers and who do not need the services of travel agents, just the internet.
The service called TopTravelVouchers gives travelers a 'fair fare price' on direct bookings but the provider still incurs the cost of commission.
source:articlesbase.com