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Recommended: Explain the nature and importance of distribution channels

INTRODUCTION

Hotel room sales Distribution Channels have evolved over the years. As in past there are several key factors that constitute a successful distribution campaign, the digital era continues to evolve and hospitality continues to adapt with it. The identified distribution channels are divided into four parts. CRS (Central Reservation Systems) or so called voice channel continues to be biggest contributor. Followed by OTA (Online Travel Agents), also called wholesale and third party, that continues to increase its reservations share with increased use of digital devises. Then, the DS (Direct Sale) share, that includes the company own website that generates reservations. Finally, the GDS (Global Distribution System) that continues to increase due to the consolidation of system within this share as a factors driving the reservation and shrinking gap between global hospitality communities.

Four Seasons Hotel with close to 100 properties worldwide has a well-established brand and a well balanced approach to the distribution channel mix. This company made resent efforts to increase the share of reservations from the direct booking channel, as the company made an 18 million dollar investment to their website. As most hospitality industry the concerns are related to the large share of bookings going through OTAs, due to commission rates. Avoiding paying those commissions Four Seasons Hotel have increased the traffic to their own website having to establish the heavy presence on social media. Today this hotel chain generates around 3,400 pieces of original content per week across 393 social media and related channels. This proved to be a major breakthrough in driving the reservations to their website and an increase in CRS/Voic...

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...to your hotel without paying the commissions to someone else. Building the loyal guest is a first priority for success of the Hotel to denture gusts going to the OTAs.

Having a well-oiled reservation system is also important to not to lose a customer through your reservation center. As most times a guest will call instead of utilizing any website. Retain these loyal, direct-booked customers by making a tailored and highly customized experience is big factor for proper booking success. Looking at the historical data, projecting the ADR and managing the occupancy to eliminate OTA availability during anticipated sell-out dates. Having a strategy to profitable occupancy and not just to sell out the hotel at all costs. Finally, today no marketing campaign is complete without establishing the traffic to direct website and having a strong presence on the Social Media.

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