In the earlier stage has discussed about the distribution channels in tourism which shows that intermediaries are the significant part in the chain. Tourism intermediary is the person who links together the tourism suppliers and the tourists. The benefits of trading through intermediary are the reduction of transaction costs, cut the costs use in promotion, suppliers are able to sell the products in a large number, and the tourists have more choices of
products and stand the lower prices. Though there are still some disadvantages of using intermediary as the concentration of the intermediary has increased. Most of the domestic tourists directly purchasing the tourism related products by themselves and frequently is the accommodation. Some airlines and transportation have their own offices to directly contact the customers as same as the retail travel agents. Internet and call centers are the most recent trends which are continuously used by many types of intermediary and direct sellers. The intermediaries are more often used by international tourist and business travelers which come in forms of all inclusive services, holiday packages and tours. The links between each intermediary organizations are categorized into two ways of integration consist of vertical and horizontal integration. Vertical integration is the linkage at the different levels in the distribution chain and the horizontal integration occurs when two travel firms at the same function join together, therefore both ways of integration aims to increase the economic benefit and further development of the market place. (VirtuaaliAMK, 2015)