May 30, 2018

A comprehensive approach to hotel channel distribution


Big brands, OTAs, GDS’s, and metasearch websites are all vying for customer attention, and it’s all affecting hotel margins.

Over the past decade, the hotel industry has experienced dramatic changes, particularly in the area of hotel channel distribution.

In order for hotels to navigate this shifting distribution paradigm, and optimize their channel mix, they must take an in-depth look at the costs and benefits of their channels: direct, indirect, online, and offline. By analyzing these channels, hotels can develop a holistic strategy that creates revenue and profit streams that are sustainable going forward.

As channels become more nuanced and complex, access to accurate data plays a pivotal role in developing a successful hotel distribution strategy. A key objective is not to simply capture more data, but to use key data and performance metrics to gain valuable insights beyond simple demographics and basic customer segmentation. Core data sets for channel optimization include economic and competitive markets, and customer-centric information such as regional diversity, website navigation paths, guest profiles, visitor tracking statistics, and stay history.

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