Question

What are the major differences between a distribution channel for a business making tangible products and a firm producing hospitality and travel products?

Answer 1

A distribution channel moves goods from producers to consumers. It overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. The key difference will be the point of consumption. 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. A tangible product is typically routed through a wholesaler and a retailer, while in the case of a hospitality products and services, more specialized channels are deployed.