Armin Gögele, last updated on 03/10/2023
Definition: What is hotel distribution?
Hotel distribution refers to the process of selling and selling hotel rooms to potential guests. This includes various channels such as direct bookings on the hotel website, bookings through travel agents, and online distribution channels such as OTAs (online travel agents). The goal of hotel distribution is to maximize hotel occupancy and increase profitability by using the right channels and strategies to market hotel rooms and reduce reliance on OTAs.
The benefits of direct distribution in the hotel industry
- Higher profit margin for the hotel
- Direct guest communication and improved guest loyalty
- Strengthening of own hotel brand by increasing reach
Potential challenges in hotel distribution
- Complexity of the online and offline sales landscape (example: which online channels make sense and which less)
- Dependencies, costs and fees of the OTAs
- Availability management in the hotel to be able to organize more bookings
The most important questions about hotel distribution
How can I reduce dependence on OTAs?One way to reduce dependency on OTAs is to specifically promote direct bookings, for example through a user-friendly website, attractive offers and clear positioning of your own brand. In addition, cooperations with online marketing agencies can help to address a broader target group and attract new guests.
How can I increase my direct bookings?Hoteliers can increase the number of their direct bookings through a user-friendly hotel website and activity on social media channels. To do this, it is worth investing in online marketing measures so that more potential guests become aware of the hotel.
How can hotels effectively manage marketing and sales methods?Hotels can effectively manage marketing and sales methods by setting clear goals, knowing their target group and targeting them with advertising measures, and regularly measuring and optimizing marketing activities. Close collaboration between marketing and sales teams and clear communication about goals and strategies are very important.