How to define a distribution strategy?
Choose a couple of channels as a focus
How to define a distribution strategy?
Think about the number of rooms you have available to sell throughout the year (# of rooms times 365 days) and divide them over the months. Divide the rooms per month over the segments Business Individual, Business Groups, Leisure Individual and Leisure Groups. More information about these target groups can be found in the Inspiration Phase. Once you have defined your segmentation, think about how you wish to reach out to those travellers.
Questions to ask
Where do they come from, which are the top 10 nationalities?
When do they travel, in which season, on which days?
How do they book, direct, via a tour operator, via an OTA?
What have they booked; room only, room with breakfast, packages?
What have they paid; in rooms rate but also extra spending in the hotel?
Focus on 3 - 10 channels
Now you can define your distribution strategy. Choose 3 to 10 channels that will become your main focus, looking at the number of rooms you predict that they will bring you in the future. Start working from top to bottom to get your hotel listed on those channels. Start with opening up your BAR Rates (best available rate) which you can price flexibly. If you start with a simple set-up you already open up your hotel to potentially the world. Later you can add new price products such as a Packaged Rate or a Non-Refundable Rate or a Rate with Breakfast and you can add more room types such as Superior Room or Room with a View.
Pro tip
When you only use a couple of OTA’s, you can manage them via the dashboards of these booking sites.
If you wish to manage more channels online it is necessary to choose the right technology that will automate this for you. It is of course essential that rates and availability are up to date to avoid double bookings and a 'channel manager' will synchronise this for you.
You can learn more on ‘how to choose the best tool.’
More information
Phocuswire: technology, distribution and the digital economy for the travel, tourism and hospitality industry
Siteminder: Top Booking Channels
15% for one booking is a lot of money, but it can be cheap
These online channels are expensive paying 15% for one booking, but it is a bargain if you can make this guest into loyal returning customer!
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