The transformation brought about by the digital era has modernized and refined the hotel industry landscape and factors contributing to its growth to a large extent.
NB: This is an article from innQuest
As a result, new, improved and effective hotel growth strategies have come into play to attract customers, increase occupancy and maximize revenue. One such powerful strategy is the hotel distribution strategy. Owing to its ability to reach a wide audience across the globe in real-time and optimize profits for hotel businesses, all hoteliers are making sure to reap its benefits.
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What Is A Hotel Distribution Strategy?
In simple words, a hotel distribution strategy is a plan of action to sell rooms through a variety of channels, in the most profitable manner. These channels include a hotel’s website, online travel agencies (OTAs), metasearch sites, global distribution systems (GDS), wholesalers, etc. The goal is to boost visibility, drive bookings and maximize profitability by selecting the right mix of channels.
How Is A Distribution Strategy Different To A Hotel Marketing Strategy?
While a hotel marketing strategy’s focus is limited to creating awareness about the hotel and generating demand, a distribution strategy focuses on securing bookings and maximizing profits for the business.
What Are The Benefits Of A Hotel Distribution Strategy?
A powerful hotel distribution strategy can bring about exceptional results for the business. Listed below are some of its key benefits –
- Enhance visibility
- Target the desired segment
- Increase bookings through direct and indirect channels
- Maximize profits and
- Boost overall business ROI
What Are The Different Types Of Distribution Channels?
Hotel distribution channels can be categorized into two main types – direct channels and indirect channels. Direct channels include a hotel’s website, walk-ins, reservations made via telephone, etc. while indirect channels include online travel agencies (OTAs), global distribution channels (GDCs), wholesalers, metasearch platforms, etc. Both these channels focus on attracting customers, engaging them and ultimately driving bookings for the business. Mentioned below is a brief explanation of all channels –
