electronic channel distribution hotel inventory pearl brewer, ph.d. university of nevada, las vegas
TRANSCRIPT
Electronic Channel Distribution
Hotel Inventory
Pearl Brewer, Ph.D.University of Nevada, Las Vegas
Channel Distribution Terms
• Merchant Model– Intermediaries negotiates rooms at net rates with
suppliers and then sells them at a marked-up price.
• Opaque Site– Brand opaque
• Hotwire.com
– Price opaque• Friendlyplanet.com
– Auctions or Name your own Price• Priceline.com
Distribution Channels
• The Hotels Website
• Chain Website• CRS links to travel
agent websites or travel agents
• Auctions or other opaque sites
• Airline sites • Online
intermediaries– Affiliates
• Tour Operators• Brokers
Distribution Channels Handout
Issues for Hotels – A Study Of Hotel Operators
Profitability
22%
Control
37%
Technology
3%Data
2%
Corp
Restriction
3%
Focuses
customer
10%
Mgt ability
14%
Cost
8%
Control Issues• Ability to control inventory
– manipulating black out dates and allotments– inability to close out inventory – manipulating availability
• Ability to control Rates– maintaining rate parity – not able to change rates as needed
• Power in the negotiation of Contracts with large companies (Expedia, Travelocity etc.)
• Control property descriptions across the web.
Profitability Issues
• Revenue• Yield• Reduction in Margins due to
discounting• Collecting Payment• Transactions costs
Ability to Manage Channels
• Time• Knowledge of the channels
– Ease of use of each channel from the management perspective
– Data received from channels
• Skills needed to manage channels– Who should be responsible
Customer-centric Issues
• Visibility of sites to the target audience– Do they reach the intended market?
• Market positioning– visual ranking of the channel on the user’s search engine display
• Purchase of keywords
• Purchase Sponsored links
• Usefulness of the sites– Ease of use for the customer
– Availability of information
• Image of the channel in the mind of the customers
Corporate Restriction, Technology, and Data Issues
• Chains and Corporation may place restrictions on their individual properties
• Technology to control channel management is either not known or understood by management
• Data collection an use in minimal and difficult
Channel Management StrategiesMost Hotels did not have an official strategy
11.48% 8.13% 7.18% 6.70%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Rate Yield Mgt. Search engine Selectiveparticipation
Those strategies in use:
Channel Management Strategies
• Best rate guarantee– Rate parity is a pricing strategy
• Yield management strategies including regular yield meetings, to maximize revenue by establishing rates and availability or driving rates over high occupancy dates.
• Search engine strategy • Selective channel participation
Still a “hot” topic for Hoteliers