Distribution Channels

AA uses indirect and direct channels product distribution. The direct channels consist of the company website, sales force and increasing use of social media. The indirect channels are specialist adventure and/or sustainable travel websites such as Responsible Tourism, Ethical Tourism, Much Better Adventures. Mainstream OTAs are avoided as their distribution costs are prohibitive. The most effective promotion/distribution channel to date has been customers’ word of mouth. When customers experience the benefits that MM’s target group is receiving (e.g. client speaks to a tour guide who used to live in the slums and now has a job and can provide a future to his/her family) a strong emotional message is sent to the client, translating into repeat business, referrals and donations.

Key Activities

As discussed in the value proposition, AA and MM carry out economic and social value creation in a synergistic fashion. All participants agreed that tourism was chosen as the key activity based on some industry characteristics such as: its low barriers to entry, revenue generating potential, labor intensity with the ability to create employment. It could attract income streams to these beautiful yet remote places. In particular the tourism product allows customers to see the realities of these places, how people live and perhaps envision how they can help. The entrepreneur emphasizes the strong emotional message created in customers’ minds when they meet the beneficiaries of the project and how lives have changed as a result. In addition, he stresses that this is the best way to convey what the company is doing. In the past it has translated into more business and donations to the charity.