Deck 7: Organizations in the Distribution Process

Question 1

The main concept in incentive travel is that:

A) a travel award is given for achieving some company goal.
B) it rewards the sponsor's leaders by their suppliers.
C) it is a powerful motivator for increased employee performance.
D) a and c
E) All of the above.

Answer 1

D

Question 2

A current travel agencies trend is:

A) increasing numbers.
B) decreasing volume.
C) growth of home-based agents.
D) decline of consortia.

Answer 2

C

Question 3

All of the following are true about travel agencies except:

A) travel agencies typically function at both the retail and wholesale level.
B) travel agencies provide both counseling as well as selling.
C) they are an important form of travel distribution.
D) individual agents can be certified as in other professions.
E) agencies function as middlemen.

Answer 3

A

Question 4

Which of the following was the top travel agency in 2009 based on their total sales volume:

A) Expedia.
B) Orbitz.
C) American Express Travel.
D) AAA Travel.
E) Carson Wagonlit Travel.

Question 5

Tourism distribution channels are similar to other basic industries as:

A) their products flow to the consumer from the wholesaler.
B) the products can be held in storage until a sale is made.
C) the consumer can buy the product cheaper from the supplier.
D) most suppliers' ads tell the buyer to go directly to them.
E) None of the above.

Question 6

Total dollar volume of U.S. travel agencies including online agencies) over the past decade has:

A) risen very slowly.
B) made dramatic growth.
C) decreased since 1995.
D) remained almost the same.

Question 7

Which of the following is the most common type of travel arrangements made by agencies:

A) hotel room reservations.
B) rental car reservations.
C) making an auto trip of over 500 miles.
D) taking a cruise vacation.
E) bicycle tour reservations.

Question 8

A marketing manager for a tourism supplier will choose channels by:

A) investigating which ones require the lowest commission percentage.
B) selecting those which complement each other.
C) selecting the fewest number which is feasible.
D) discovering from experience which combination is effective.
E) using mainly travel agencies and incentive travel companies.

Question 9

Tourism suppliers use a distribution system because:

A) this is the cheapest way to go.
B) they could sell their own products directly but don't have staff.
C) using distribution is the most productive and efficient.
D) the distributors have better knowledge of what sells.
E) distributors charge very little for their services.

Question 10

According to a recent survey, the number of U.S. travel agencies is:

A) increasing.
B) decreasing.
C) staying stable.

Question 11

A cruise line sales executive would probably use mainly: distributors)

A) incentive travel companies.
B) large companies which specialize in group tours and cruises.
C) retail travel agencies.
D) specialty channelers.
E) corporate travel departments.

Question 12

Tours can be created and marketed by:

A) wholesalers.
B) retail travel agencies.
C) airlines working with tour wholesalers.
D) travel suppliers.
E) All of the above.

Question 13

An individual travel counselor who seeks the most complete education can do this through:

A) ASTA.
B) ARTA.
C) CLIA.
D) NACOA.
E) The Travel Institute.

Question 14

Concerning sources of agency revenues, the following apply:

A) most of the revenue comes from a combination of car rentals and cruises.
B) cruises and tours produce the best commissions.
C) airlines are no longer a source of revenue.
D) hotel, rail, car rentals and cruises predominate.
E) none of the above is correct.

Question 15

The largest and most prominent travel agency association is:

A) ARTA.
B) ASTA.
C) CLIA.
D) NTA.
E) ARC.

Question 16

Compensation to distributors by the suppliers is typically done by:

A) paying a commission on each sale.
B) offering to give distributors family trips and other perks.
C) paying overrides on each sale made.
D) giving lower prices to their favorite distributors.
E) paying more to distributors in the most favorable markets.

Question 17

The leading companies in the U.S. in incentive travel are:

A) Maritz and American Express.
B) Maritz and E.F. MacDonald.
C) Thomas Cook and Olson Travel Network.
D) GoGo Tours and American Express.
E) Perillo Tours and GoGo Tours.

Question 18

When describing specialty channelers we mean that:

A) the company specializes in special interest tours.
B) the tours are for people in special groups such as churches.
C) they are specialty intermediaries.
D) they include incentive travel firms, corporate travel offices.
E) c and d

Question 19

Tour operators and wholesalers are the main membership of:

A) NTA.
B) USTA.
C) ARTA.
D) USTOA.
E) a and d.

Question 20

Which of the following airlines is generally recognized as the first low-fare carrier in the United States:

A) American Airlines.
B) Alaska Airlines.
C) Virgin Airlines.
D) Southwest Airlines.
E) JetBlue Airways.

Question 21

Travel agencies that have contracts with one or more airlines-those enabling them to distribute tickets at sizable discounts are called:

A) black market agencies.
B) groupers.
C) consolidators.
D) liquidators.
E) Wal-Mart.

Question 22

Companies that put together a tour and all its components, to sell them by itself, through retail outlets, and/or through approved retail travel agencies, is commonly called:

A) a tour operator or wholesaler.
B) a tour consolidator.
C) a tour discounter.
D) a tour entrepreneur.
E) a tour outlet store.

Question 23

Because the airlines have steadily been decreasing the commission paid to travel agencies, the vast majority of agencies now charge a service fee. Which of the following is generally the most typical amount of this service fee?

A) $5
B) $10
C) $15
D) $20
E) $35

Question 24

American Society of Travel Agents ASTA) agencies report that approximately which of the following percentage of their sales are accounted for by corporate sales?

A) 25%
B) 40%
C) 60%
D) 75%
E) 90%

Question 25

American Society of Travel Agents ASTA) agencies report that approximately which of the following percentage of their total sales are accounted for by leisure products?

A) 25%
B) 40%
C) 60%
D) 75%
E) 90%