How Distribution Channels has evolved over the years
GDS – Global Distribution System
OTA – Online Travel Agents
CRS – Central Reservation Systems
In the past, CRS / Voice has been one, of the primary distribution channels. The emotional value of having a real person to help you make an educated booking decision has always ranked high among customers.
Most of the concerns are related to the large share of bookings going through OTAs. This due to that OTAs takes commission rates between 5 – 33%.
This has again lead to some Hotels is working to identify the best OTAs and collaborate with them for better Revenue Management.
The research point out some of the Key indicators that keep Hotel Managers awake;
- Revenue & Occupancy
- Control cost of distribution/e-business
- Increased exposure
Social Media as a Distribution Channel
Social Media and New Media have over the last couple of years evolved as new Distribution Channels for many Industries.
The reports indicate that Hotels has been slow to adapt or some case still is on the fence when it comes to Social Media and New Media in general.
And the reason for this is the limited understanding of how this can optimize distribution or how to make effective use of it.
Some Hotels also point out the challenges with track and measure the data.
What are some of the future challenges for Hotels?
- More direct sales
- More contracts
- Less distribution costs
- Better Revenue
And one of the key challenges for the future is to decrease costs of distribution while raising rates and occupancy.
We are starting to see signs that Hotels is increasing their rates due to demands in the market.
And the report indicates awareness for Future Distribution Channels;
Hotel Managers are indicating the need for more Social Media and New Media Marketing.
Now there is a doubt that Social Media and New Media will make an impact on the Hotel Industry. But there is a disconnect on how this adds value to the Hotel Industry.
As the report indicates Social Media and New Media is not among the challenges that keep Hotel Managers awake during the night.
Obliviously the answer is not push through any hyped Social Media Campaigns. There has to be a connection between that there is an understanding of how the Hotel Industry works, and how Social Media/New Media can address future challenges.
And the opportunities lay in proper training and education that specially designed and customized for the Hotel Family.
I will take part in a project that launches the Hotel Social Media Education Campaign.
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