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Discussion Question 7

Discussion Question 7

Q What are the major differences between a distribution channel for a business making tangible products and a firm producing hospitality products? Also, how can hospitality companies effectively work with online travel agencies (e.g., Booking.com, Priceline.com, Orbitz.com) as a distribution channel? Please note that the key difference would be “the point of consumption.” For example, a business making tangible products will have to continue to ship it to a location of customers’ choosing, while a hospitality product or service has to be consumed by customers on site. Please focus on this perspective when answering the question.

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In case of a distribution channel for a business making tangible products, there are attempts made by the independent organizations to ensure that goods are moved to consumers. This action takes place only after acquiring the required products of consumers from manufacturers by the independent organizations. However, in case of distribution channel for a business firm producing hospitality products, there are attempts made to ensure that the customers are tried to be moved towards hospitality products.