Determining the optimal distribution mix for hotels

Abstract

One of the challenges in contemporary hospitality management is that of distribution channel management. The sale of hotel rooms is increasingly moving from the offline world to the online world and growth in the number of different third party intermediaries for accommodation establishments as well as the number of transactions in those intermediaries has been exponential. As technology develops, revenue managers and hoteliers need to develop new strategies and adapt to new platforms in order to meet the challenges of an increasingly complex and competitive world of digital distribution as well as the increasing needs of tech-savvy consumers in a price transparent environment. This study examines the current challenges and opportunities in distribution channel management in hospitality by qualitative exploratory research methods. Some examples of best practices and methods in revenue and distribution management are discovered and put together as recommendations for the industry. It should be recognized that the field is integral to developments in technology and therefore this study can act as a template for future research and as a tool to identify future areas of research.