The main effect of tourism economy is reflected through services and facilities for the passengers. Restaurants and food services, accommodation and hospitality facilities, transportation services, camps, information services, entertainment-sport facilities and shops have the most rates of employment, revenue and taxes. The collection of these services is usually called hospitality services industry[23].
The products and services of tourism are distributed in two ways: direct distribution system and indirect distribution system.
In direct distribution system, the distributors of product contact the customer or passenger without middleman.
Tour wholesalers serve as the middle-man between the tourism services providers and travel agencies (referred to as retailers).
Tour operator which is called “land operators,” too, provides the same travel services and products like tour operator, but in a smaller scale[24].
Tour operators are trade organizations which supply a combination of transportation, accommodation and other services as a tour package to the people, through a series of communication channels[25].
Travel agents in tourism industry, play the role of retailers providing all tourists required services such as ticket, hotel reservation, and car rent. These offices are part of middleman in tourism industry, as the last chain connecting tourism services and products to the consumers. Actually, successfulness of a travel agent depends on three key factors[26].
a) Location and physical facilities: location and easy access to agency, for those who are interested to travel, and also visibility and having good view are very important.
b) Information, ticketing and reservation systems for providing services, in an immediate way and with most proper rates, are necessary.
c) Personal services: concentrating on human element, the ability to understand tourists, tour operators and good and respectful behavior; also, travel agent should have the required knowledge and skill for providing proper counseling to the clients.
Special Features of Tourism Services:
1- Tourism, compared to other services, is mostly directed by supply.
2- Tourism product is produced by partnership between different suppliers.
3- Tourism product is analyzed during a period with different steps, and for the same it’s difficult to be assessed.
4- Tourism product is high risk for the consumers.
5- Part of tourism product is based on the personal dreams and interests of consumers.
6- Tourism industry is vulnerable against the external forces which are out of the control of providers.[27] .
Product, price and place and promotion of sales activities are 4 primary elements of the market, known as 4P. Studies and assessments have shown that products like live animals pass a life chain. This concept was introduced in the field of goods marketing first by Louit (1965). According to this pattern, at first the product is introduced and supplied, then becomes grown and reaches maturity stage, and finally, comes down. Travel agencies are like retailers who usually get commissions. This organization tries to play the role of middlemanbetween service providers and travelers. Travel agents offer vast range of services including providing the required documents, an explanation of the destination, hotels and customs, ticketing, vaccination and etc. Travel agents in Iran have Share of ticketing sales as their commission; 10% % of air ticketing sales, 5%% of train ticketing sales, 5%% of bus ticketing sales are belonged to them.
Today, ticketing sales has completely evolved from its traditional way. Ticket less and e-ticketing systems have accelerated and facilitated the procedure, so, the middleman may be removed and people may try to start purchasing ticket themselves. But, in Iran, the people still refer directly to the agents for preparing tickets, and sometimes, in the case of train and air, they refer directly to airlines and train stations. In other countries, there are places for hotel and accommodation reservation at airports, bus terminals, and train stations, but there is no such possibility in Iran. Iran’s travel retail industry is characterized by fierce competition and very low operational standards. By 2005 there were 2,500 agencies, which represents an increase from 90 ten years before.
However, this level of growth has not been positive for the industry, as many of the agencies are recording recurrent losses and 40% are on the brink of bankruptcy. [28].
Cultural Heritage Organizations and other related agencies should have some offices at the ports of entry and exit, providing respectful welcoming and greeting to the travelers, while answering their questions, too. The guides and drivers should be able to communicate in English. The required activities for tourism should be considered systematically and as a whole, and also should be studied together. This is the only way that we can acquire the goals of actual development of tourism. For example, the transportation activity, without accommodation facility, will not play any role in development, or lack of coordination between food and beverage suppliers for tourists and tourism officials will not lead to tourism development[29].