Distribution Channel Model for Hotel Revenue Management: Lessons from Hoteliers and E-Intermediaries

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose: Understanding the distribution channel is a foundational element of successful hotel revenue management. This study aims to assess hotel distribution network partnerships and develops a model that can be utilized to ensure hoteliers are not becoming increasingly reliant on a single channel, optimize their market exposure, and maximize their portion of the overall worth of the network. Research design, data and methodology: This study utilizes a grounded theory approach to form a theoretical model by analyzing and examining the current practice of hotel distribution management through interviews with 15 stakeholders in Indonesia, such as hoteliers, online travel agents, wholesalers, and connectivity managers. Results: Based on data analysis, we describe hotel distribution elements, revenue team, managed channels, and channel prioritization for a different type of hotel. Finally, we propose a distribution channel model that comprises hotel teams, customer types, indirect channels, and direct channels. Conclusions: The model contributes to the literature by exploring the options of distribution channels for various hotel types to support hotel revenue management practice. By utilizing our model, practitioners can have a complete picture regarding the strategic choice of the channel by considering their hotel capacity and market target

Original languageEnglish
Pages (from-to)19-29
Number of pages11
JournalJournal of Distribution Science
Volume20
Issue number2
DOIs
Publication statusPublished - 2022

Keywords

  • Distribution channel
  • Grounded theory
  • Hotel
  • Revenue management
  • Tourism supply chain

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