Supplier Selection in the New Zealand Inbound Tourism Industry

Abstract This paper contributes to the literature on business-to-business relationships in tourism distribution by examining questions of supplier selection in the New Zealand inbound tourism industry. In particular, the paper examines the factors that influence offshore intermediaries' selection of new suppliers; analyses the factors that would lead them to change suppliers; and investigates the ways they stay abreast of what products and suppliers are available in New Zealand. An open-ended approach is taken to addressing these questions based on interviews with a range of intermediaries in New Zealand's three main international markets: Australia, Great Britain and the USA. Three broad sets of factors are found to influence their behaviour in terms of selecting and changing New Zealand suppliers of travel products: those related to products, people and pricing. In contrast to earlier work in this field, product-related factors are shown to be particularly important. TRENZ, the country's annual travel trade fair, and the activities of the national tourism marketing organization are the main means by which intermediaries remain abreast of product development. The paper concludes by outlining the implications of these results for those researching tourism distribution and for suppliers operating, or seeking to operate, in international markets.

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