October 22, 2018

Hotel Distribution: Stop predicting, start diagnosing


Modern hotel distribution is a more complex and fast-changing environment than ever, thanks to the dominance of the share of bookings being made online.

Modern distribution is a different challenge and an opportunity for hoteliers. Unlike other disciplines - such as revenue management where the objective is to predict the price tomorrow, typically based on data and insights from past performance and trends - distribution deals with the challenge of optimizing the cost of every sale based on forward-looking data.

Distribution is an unforgiving execution discipline, as once a sale is made there is little hotels can do to influence the cost of that sale which impacts the bottom-line. Hence, it requires careful and continuous monitoring to ensure distribution is always optimized to achieve the best possible cost-of-sale outcome for every booking, for every guest.

Therein lies the biggest opportunity for hotel distribution. With the right processes, systems and people in place, hotels can understand exactly how their inventory is being sold across all channels and optimize their distribution.

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