AboutNorman L. Rose Expertise Any questions related to technology and the travel industry. This includes online travel trends, changes in travel distribution practices, emerging technology to manage corporate travel, corporate self-bookings tools, expense management systems and data warehouse initiatives.
Travel Companies: Carlson Leisure Group, Carlson Wagonlit /WTS, Datalex, Maritz Travel Company, The National Business Travel Association, Perillo Tours, Reed Elsevier/OAG, Rosenbluth International, Sun International Resorts, US Bank, Worldspan, WorldTravel BTI
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Followup To
Question -
I would like to know more about the travel industry.
I know that in the chain of travel there is the:
wholesaler--- travel agency---- customers
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suppliers
I would like to know how the wholesalers chooses the hostels, airlines, excursion (ex: snorkeling in Bahamas)etc.
From which criteria and how they pay and negotiate the agreements with the suppliers.
Thank you very..Ps If my sentences are difficult to understand, its because my first language is french.
Answer -
Catherine,
This is an interesting question considering the changes happening in the industry. The distinction between wholesalers and retailers is fast disappearing. Wholesalers work with specific suppliers based on a specialty in a specific destination. For example, Perillo Tours specializes in Italy vacations. Perillo works with a ground operator who represents them in Italy. Apart from that this is a complex business and I am afraid your question is a bit too broad to respond to via Experts.com
Best Regards,
Norm
Thank you Norm for your quick answer.
I will try to be more specific. I offered my services (to a few wholesaler) to evaluate hotels and activities in Hawaii. One of them was interested. Its a small company and from what I understand they don't have enough money to have a ground operator. But they would like to improve their services.
What I would like to know exactly is how the wholesalers is paying the suppliers. Does he pay the supplier or he only publicize the service for the suppliers. Because the wholesaler offer a service and not a product, I would like to understand how the wholesaler make is money ?
My other question is who evaluate the quality of an hotel?
For example,when they say its four star, is it the supplier who say that or somebody came to evaluate the service?
Answer Sorry for the delay. I didn't see your additonal question. The wholesale usually contracts with suppliers for either block rooms (hotels) or discounted price for serices (e.g. snorkerling, or other activities). The wholesaler then may markup the hotel price or activity provider may pay the wholesaler a referral fee.
