Abstract:
This thesis explores the structure and behaviour of distribution channels linking destination New Zealand to an emerging market - India. The study sets out to examine channels of distribution in their entirety i.e. from the destination to the market. It analyses each level in the distribution system linking New Zealand to the Indian market (suppliers, inbound operators, wholesalers/retailers, sub-agents) and discusses their distribution mix and provides behavioral explanations underlying their distribution decisions. The study also highlights the inter-dependent relationships between channel members, and aims to provide tourism practitioners with a better understanding of the high level of cooperation, and appreciation of the perspectives of channel members, required in order to meet distribution goals.
India is the second most populated nation in the world and has a fast growing outbound tourism market. For New Zealand, it is still a new and emerging market, but has the potential to become an extremely important market in the future. Therefore, in order to successfully market New Zealand within the Indian market, it is very important to understand the issues surrounding the nature and characteristic of both the market and the destination and the effect it has on channel members and the distribution system as a whole.
Studying the entire distribution system across national boundaries is something that has been rarely attempted in the past. Therefore, the methodology used to conduct this study has also been extensive due to the very nature of the research, involving studying channel members at every level both at the market and the destination.
The results show that within India, there is still a strong influence of the traditional methods of distribution. The Indian intermediaries - tour operators/wholesalers/retailers and destination marketing companies - are primarily the mainstay in the distribution chain within the market. Information technology, particularly the Internet is widely used as source of information instead of a booking tool. At this stage, its influence is not pervasive and it would be a long time for disintermediation to occur.
New Zealand, as compared to most other destinations, is a new long haul destination for the Indian market. The market's present immaturity and the nature of the New Zealand tourism product, justify the Indian intermediaries reliance on the New Zealand based inbound operators. The inbound operators act as a crucial link between the Indian intermediaries and the New Zealand suppliers. At this stage, the market being very small in terms of tourist numbers, it will be a long time before any major form of disintermediation occurs in the distribution chain. As of now, all channel members should work together in an integrated manner so as to increase New Zealand's market share in the Indian market.
