The Future of Hotel Electronic Distribution Expert and Industry Perspectives

H otels traditionally use a variety of different distribution channels, including distributing through other properties within their chain, joining marketing consortia or other types of affiliation organizations, or outsourcing to representation or third-parry reservation companies. Most hotels also use intermediaries such as travel agents, tour operators, or incentive houses. Increasingly, hotels are making use of the growing range of electronic-distribution channels, which is this paper’s topic. In all cases, the objectives of using the channel are twofold, namely, to make relevant and timely information conveniently available to the hotel’s potential customer; and to make it easier for guests to book the property in question. A distribution channel is defined as a mechanism that provides “sufficient information to the right people at the right time and in the right place to allow a purchase decision to be made, and also allows the consumer to make a reservation and pay for the required product.“’ Effective distribution is especially important for hotels because of their perishable inventories. In this article we offer a conceptual overview of consumer-focused hotel electronic distribution channels based the results of a Delphi study and a survey of electronicdistribution managers from major hotel chains. We identify both the channels and the distribution nodes that are most important for hotel distribution and we offer forecasts regarding the components that will be of greatest importance.