Difference between revisions of "Distribution"
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Emerald Forest Hotel offering an emerald hotel experience!
| Run your own hotel in this management simulation.
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== Which distribution channels? == | |||
== Which distribution channels? == | |||
For now the hotel, in their distribution (so getting customers and occupancy in the hotel) mainly relies on its own sales. So in the [[Operating review|variable costs]] you will see no costs for this at all. <br> | For now the hotel, in their distribution (so getting customers and occupancy in the hotel) mainly relies on its own sales. So in the [[Operating review|variable costs]] you will see no costs for this at all. <br> | ||
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have: | This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have: | ||
* 30% directly from the own reservation system (CRS), royal customers, website etc. | * 30% directly from the own reservation system (CRS), royal customers, website etc. | ||
* 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average | * 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average | ||
* 30% via [[aggregator|aggregators | * 30% via [[aggregator|aggregators] like Bookings.com, who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] | ||
* 15% via [[affiliate]] links, who you would pay (cost per sale) | * 15% via [[affiliate]] links, who you would pay (cost per sale) [https://blog.travelpayouts.com/en/selecting-hotel-affiliate-program/ commission would be like 5% on an average]. | ||
* 5% via Daydeal sites like Groupon | * 5% via Daydeal sites like Groupon | ||
Revision as of 13:03, 2 January 2020
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Which distribution channels?
For now the hotel, in their distribution (so getting customers and occupancy in the hotel) mainly relies on its own sales. So in the variable costs you will see no costs for this at all.
This situation doesn't really match reality anymore. Looking at the market as a benchmark, it would be more realistic to have:
- 30% directly from the own reservation system (CRS), royal customers, website etc.
- 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average
- 30% via [[aggregator|aggregators] like Bookings.com, who would get 10% commission on an average
- 15% via affiliate links, who you would pay (cost per sale) commission would be like 5% on an average.
- 5% via Daydeal sites like Groupon
So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions to be paid. Or, having a higher occupancy rate to compensate for the additional costs.
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