Deck 13: Distribution Organizations

Question 1

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

Answer 1

B

Question 2

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

Answer 2

E

Question 3

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.

Answer 3

D

Question 4

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 5

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 6

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 7

This is not a typical example of tour wholesalers:

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

Question 8

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.

Question 9

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 10

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 11

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 12

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 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

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 15

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

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

Question 16

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 17

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.

Question 18

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 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 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.

Question 21

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Escorted tours

Question 22

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 23

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Tour wholesalers

Question 24

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Computerized reservation systems (CRS)

Question 25

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Yield management

Question 26

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
The Professional Convention Management Association (PCMA)

Question 27

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Tour operators

Question 28

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.

Question 29

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Travel agents

Question 30

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Online reservation

Question 31

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 32

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 33

Online travel services such as Travelocity provide consumers the following benefits except:

A) access to airlines, hotels, car rental companies, cruise lines, and vacation offerings
B) last-minute travel packages
C) pricing information
D) personal consulting and expertise in themed tours

Question 34

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Advance purchase excursion fares (APEX)

Question 35

MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the term with the correct description.

A) Travelers go online and within minutes have several quotes and often access to better deals than if they go through a travel agent
B) The travel intermediaries that package tours for a country or an area, and then sell them to retail travel agents wherever possible
C) A consultant and sales intermediary for airlines, hotels, railroads, car rental companies, and cruise ships who receives commissions from the carriers and other suppliers
D) Companies that arrange every aspect of a travel package and bring together all the elements of a trip for travelers
E) The leading organization for meeting and event professionals
F) Tours with a trained escort that travel with the group
G) The professional association for meeting planners
H) Global distribution system (GDS)
I) Fares offered between selected cities that requires tickets purchased 60 days in advance and a stay of at least 22 but no longer than 45 days
J) A set of strategies that enable
capacity-constrained service industries to realize optimum revenue from operations
Meeting Planners International (MPI)