Armin Gögele, last updated on 13.06.2023
What is distribution?
Distribution in a hotel is the process of marketing and selling rooms. It mainly involves the distribution of the offer to different distribution channels, such as the hotel's own website, online booking platforms (OTAs) and travel agencies. Aspects such as pricing and visibility on the distribution channels also play an important role.
Distribution via OTAs
OTAs have grown significantly in recent years and are an important part of distribution for hotels. While they offer a wide reach, the commission costs are high for the hotel. It is therefore important for hotels to promote direct bookings on their own website. The right pricing policy plays an important role in this. The room rate on an OTA should never be lower than the rate on the hotel's own website.
Dynamic pricing in the hotel sector
Another distribution option is dynamic pricing. This involves adjusting room prices according to occupancy and demand in order to achieve optimal occupancy.