Distribution strategy is the process of determining the best channels to sell your products or services to reach your target customers. In the travel and hospitality industry, this can be a complex process, as there are many different channels available, each with its own advantages and disadvantages.
The most common distribution channels for travel and hospitality businesses include:
- Online travel agents (OTAs): OTAs are websites that allow travelers to book hotels, flights, and other travel-related services. They are a popular choice for travelers because they offer a wide variety of options and competitive prices. However, OTAs typically take a commission on each booking, which can eat into your profits.
- Global distribution systems (GDS): GDS are computer systems that connect travel agents and wholesalers with hotels, airlines, and other travel providers. They are a more expensive option than OTAs, but they offer greater reach and visibility.
- Direct booking: This is the process of selling your products or services directly to customers through your own website or call center. This is the most profitable option, but it can also be the most challenging, as you need to attract customers to your website and convince them to book directly with you.
- Partnerships: This involves working with other businesses to sell your products or services. For example, you could partner with a travel agency to offer your hotel rooms to their customers, or you could partner with a restaurant to offer discounts to your guests.
The best distribution strategy for your business will depend on a number of factors, including your target market, your budget, and your goals. If you are targeting a mass market, then OTAs may be the best option for you. If you are targeting a more niche market, then direct booking or partnerships may be a better choice.