OVERVIEW OF THE DEVELOPMENT OF DISTRIBUTION CHANNELS IN THE HOTEL INDUSTRY: ANALYSIS OF A LUXURY HOTEL IN SPLIT

Abstract:Distribution channels in hotels are crucial as they enable an efficient connection between hotels and potential guests. The sale of accommodation capacity is the basis for optimizing revenue in the hotel industry. However, not all distribution channels contribute equally to maximizing revenue. Hotels can use different channels to better manage their occupancy rates by adjusting prices and offers to changing demand. Online distribution channels and greater integration of websites allow hotels to expand in the tourism market and attract guests from different parts of the world. Distribution channel management promotes significant proactive measures in the areas of sales and providing information to tourists. Distribution channels play a key role in a hotel’s success as they contribute to higher occupancy rates, a greater number of bookings and better management of the hotel department. The main objective of this paper is to show the changes in distribution channel shares over the last seven years using a luxury hotel as an example. The paper uses secondary data collected internally due to the particular characteristics of the data. The secondary data of the luxury hotel allows to explore the market position of the hotel compared to its competitors and provides valuable insights into strategies that help to attract exclusive guest segments. In addition, secondary data from hotel operations, such as revenue, ADR and RevPAR, enable the hotel’s success in key business areas to be assessed. Based on the luxury hotel’s historical data this research provides analysis that helps in planning future business strategies for managing distribution channels as well as effectively adapting to market changes. Understanding the share of distribution channels ensures hotels to tailor their services to the needs of the different exhibiting tourism markets.

 

Keywords: distribution channels, luxury hotel, OTA, Split