The Science of Distribution Channel Management
By Robert Rauch Chief Executive Officer, RAR Hospitality | September 27, 2015
This year has been named the best that the industry has ever seen, however, the growth in distribution costs as well as other operating costs such as health care and the minimum wage increases can stunt profit growth if not managed properly.
This means that reliance on the online travel agencies (OTAs) can impact the bottom line in a significant way.
By directing guests to your hotel's website and telephones, the savings are abundant. The digital distribution costs are soaring and the number of players entering the market to compete with OTAs is rapidly rising (think Google, Facebook, Apple, TripAdvisor, Amazon and more).
There are 6 primary distribution channels that need attention as well as strategies to ensure success:
2. Voice: Call center or 800 numbers
3. Direct to hotel
6. Social media
When considering distribution channels, Brand.com continues to be the most popular channel for reservations, however, OTAs are slowly stealing share by showing a greater increase in growth each year. The key to continue to maintain web direct share is to review your content and make sure it is relevant, up-to-date, creates value, answers questions and inspires guests to book.