
Distribution channels in Hospitality
Distribution channels are a key strategic tool for any hotel business aiming to increase bookings, expand its customer base, and optimize revenue.
Through these channels, hotels distribute their products and services to the wider public, both directly and indirectly.
Direct channels include the hotel’s own website and reservations department, offering greater control, higher profit margins, and a better guest experience. On the other hand, indirect channels, such as OTAs (e.g., Booking.com, Expedia), travel agents, and GDS (Global Distribution Systems), provide broader exposure, but typically involve commission fees.
The success of a hotel largely depends on having the right distribution strategy across these channels. Choosing the right partners, constantly monitoring performance, and using tools like channel managers or Property Management Systems (PMS) are critical for maximizing efficiency and minimizing issues like overbooking or rate disparity.
In essence, smart management of distribution channels is not just about selling rooms, it’s also a powerful tool for branding, competitiveness, and sustainable growth in an ever-evolving tourism landscape.