What is the meaning / definition of Distribution Strategy in the hospitality industry?
Distribution Strategy determines when and through which channels to sell hotel rooms based upon an analysis of the costs of acquisition of the individual channel.
All of the costs of acquisition of each individual channel will be considered and calculated before the hotel finalizes the list of channel distribution they will be using.
By using the right channel of distribution and driving business to more cost-efficient channels during high demand periods hotels can maximise their profitability.
There is wide range of channels a hotel can sell its rooms through. The main ones which should be considered are Global Distributions Systems (GDS) and Consortia, Travel Agents and Tour Operators, OTAs, DMCs, Tourist Offices & Convention Bureaus. Not to forget Sales Representatives and of course the own (optimised) Hotel Website.
- Channel Management
- Distribution Strategy