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How to craft a hotel distribution strategy for long term growth?

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This is the right time to craft a hotel distribution strategy. Do you know why?

Because post-pandemic we will see a huge rise in the travel. In fact, currently, we are witnessing revenge travel in many countries.

Hence, across the globe, there will be a rise in travel. The online channels have unexpectedly increased booking choices.

Hence, there will be a large number of online and offline bookings. Consequently, hotels will have to strike a balance between them.

And what’s more appropriate than crafting a sound hotel distribution strategy.

Rectangle boxes showing the image of developing a hotel distribution strategy

But before pinning down points of strategies to develop a hotel distribution.

Let’s first understand about distribution strategy and hotel distribution strategy in brief.

A distribution strategy is a way of providing your goods or services to end-users.

You can use a variety of distribution methods to appeal to diverse customers and generate revenue.

Similarly, a hotel distribution strategy is taking steps to sell rooms profitably through multiple channels.

Hence, hotels have to collaborate with multiple travel agencies, as well as distribution partners.

Therefore, use hotel websites along with indirect channels like Online Travel Agencies, Global Distribution Systems, and wholesalers.

This way, you can increase visibility, target travellers and increase occupancy.

Ultimately, it will have a competitive advantage among others and will maximize its gross operating profit.

Understand your business objective and take steps accordingly.

For instance, increase your capacity to fill vacant rooms, attract more international visitors, etc.

It will assist you in determining the best distribution mix.

After setting the objective, you have to analyze the guests who choose your hotel again and again.

Moreover, you accept offers and amenities happily that you are providing. In short, your focus should be on guests who increase the hotel’s profitability.

Find out the channels these guests give preference for making reservations and the geographical regions these guests belong.

It enables you to put the effort in the correct place.

Optimize your distribution strategy after analyzing the underlying traveller segments who book at your hotel.

Generally, there are two segments of travellers. They are lower-yield segments traveller and higher-yield segments traveller.

The different segments have different interests and preferences, and most importantly, pricing points.

Solo travellers prefer to spend their time seeing the city rather than staying in a hotel.

As a result, they place a higher value on low costs than on facilities and services.

On the other hand, business travellers pay higher room prices because their company is more concerned about their comfort.

So, they reimburse or directly books room for them. Moreover, they use hotel amenities to complete their job-related task.

For instance, computer and high-speed internet access, scanners, printers.

So, all those who turn out to be more profitable for the hotel will come under higher-yield segments like business travellers.

Generally, higher yield segments travellers book from the hotel website and OTAs.

Whereas, lower-yield segments traveller books room few months before their visit.

Incorporate a variety of online and offline channels. Offline channels are phone or email.

Other than this, you can consider collaborating with Voice reservation services and tour operators to include in your offline channels.

In contrast, online channels are your website, Online Travel Agencies, Global Distribution Systems and social media platforms.

Build a strategy to make your rooms are accessible through both online and offline channels.

Using diverse channels, you can increase the visibility of your hotel property and bookings are possible from all around the globe.

Both modes of channels have their own share of guests. While online channels are popular among younger generations.

Residents and older people are more likely to book rooms from offline channels.

Set competitive rates at the same level as your competitors are charging.

Competitive rates mean you have to consider the prices of rivals when determining the price of the same or similar items.

To price your hotel room rates competitively. You must measure the cost you are incurring and study the price your competitors are charging.

With this technology-driven era, every piece of information is available online. Hence, you cannot charge higher than what others are charging.

Otherwise, you will lose market share and customers to the competitors.

OTAs and channel managers provide tools to assist you to stay on top of market changes.

Moreover, there are other management tools available that aggregate real-time market data to provide competitive pricing insights.

Including diverse channels and developing a pricing strategy are critical components of your distribution strategy.

Along with these, you must invest in the proper technology to bring all of these elements together.

The two-way integration is an essential tool for hotels and accommodation providers that want to compete in today’s massive online marketplace.

Hence, you can integrate your Property Management System and Central Reservation System and broaden your market reach.

By connecting your various distribution channels, it will update price on the basis of demand in the market and consumer trends.

Ultimately, the reservation is maximized.

We can conclude that a good hotel distribution strategy setting a goal and accordingly taking steps is necessary.

The steps include having a keen eye on active guests, divide your guests and target them.

Moreover, include various channels and charge competitive rates from customers. Last but not least integrate technologies for better performance.

Apart from above mention strategies don’t forget to continuously look after their performance.

And if they do not match the standards and variances found then take corrective actions to optimize them.

Resultantly, your hotel business will flourish and expand.

Please share views in the comment box.

If you want to learn about the functionality of QloApps then you can visit this link: QLO Reservation System – Free Open-Source Hotel Booking & Reservation System

In case of any query, issue or requirement please feel free to raise it on QloApps Forum

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