Difference between revisions of "Distribution"

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{{General header}}
{{General header}}
== 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>
At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel) . 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: mega partners like [https://www.expedia.com/ Expedia.com]
* 20% via agents (OTA, travel companies, partners etc), who would get 10% commission on an average: mega partners like [https://www.expedia.com/ Expedia.com]
* 30% via [[aggregator|aggregators]] like Bookings.com, or who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] in many cases more.
* 30% via [[aggregator|aggregators]] like Bookings.com, or who would get [https://www.quora.com/How-much-commission-is-booking-com-charging-their-partner-hotels 10% commission on an average] in many cases more
* 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].
* 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
Some alternative for Bookings groups, being the biggest payer, are sites like  [https://alternative.me/booking-com Hotels.com and others]. <br>
Some alternative for Bookings groups, being the biggest payer, are sites like  [https://alternative.me/booking-com Hotels.com], and [https://alternativeto.net/software/booking-com/ others].<br>
 
There is initiatives, like [https://moonback.com/ Moonback] setting up a more 'fair' system, starting from a steward-ownerships structure. <br>
There is initiatives, like [https://moonback.com/ Moonback] setting up a more 'fair' system, starting from a steward-ownerships structure. <br>


Interesting read on Hospitality net is [https://www.hospitalitynet.org/file/152008406.pdf The economic impact of OTAs in the EU: summary report.]<br>
Interesting read on Hospitality net is [https://www.hospitalitynet.org/file/152008406.pdf The economic impact of OTAs in the EU: summary report.]<br>


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.  
So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions (costs) to be paid. Or, having a higher [[occupancy rate]] to compensate for the additional costs.  


== Models in operating a hotel ==  
== Models in operating a hotel ==  
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Revision as of 11:21, 2 July 2023

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Which distribution channels?

At the moment, the hotel mainly relies on its own sales, in their distribution (so getting customers and occupancy in the hotel) . 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:

Some alternative for Bookings groups, being the biggest payer, are sites like Hotels.com, and others.
There is initiatives, like Moonback setting up a more 'fair' system, starting from a steward-ownerships structure.

Interesting read on Hospitality net is The economic impact of OTAs in the EU: summary report.

So looking ahead at the future, using these partners would also mean having the prices go up a bit, to compensate for the commissions (costs) to be paid. Or, having a higher occupancy rate to compensate for the additional costs.

Models in operating a hotel

Read the interesting article on profit-models, ownership and distribution White paper in Hospitality Management,



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Emerald Forest Hotel offer an emerald hotel experience! | Run your own hotel in this management simulation.