ipl-logo

Hotel Distribution Case Study

729 Words3 Pages

The Impact of Online Distribution Channels on Hotel Revenue
In recent years, the hotel industry has brought in significant changes and has adapted to the E-distribution. Traditional business hotels could have three primary distribution channels: hotel direct, central reservation systems and travel agents. A distribution channel is defined as mechanism that provide “sufficient information to the right people at right time in the right place to allow purchase decision to be made and also allow the consumer to make a reservation and to pay for the required product”
Distribution has become a crucial part for the marketing mix as it has become too difficult to hold onto a competitive edge via product, pricing and promotions.
Aim - The research …show more content…

Once a minor contributor of bookings, they are now primary business sources and grow more important with every passing month.

Introduction
According to Robert Cross, the pioneer of airline revenue management (RM), “Revenue Management ensures that companies will sell the right product to the right customer at the right time for the right price”.
Revenue Management executes the fundamental standards of supply and demand economics in a strategic manner to produce incremental incomes. There are three vital conditions for income administration to be material:
• Fixed amount of inventory available to be sold.
• Inventory is perishable in nature. There is time limit to sell the inventory.
• Those diverse customers are ready to pay a different price for utilizing the same room.
“Revenue Management has contributed millions to the bottom line, and it has educated our people to manage their business more effectively. When you focus on the bottom line, your company grows.” –Bill Marriott Jr., Chairman and CEO, Marriott …show more content…

Revenue Management is not just expanding in high demand period, it helps animating request in low periods. Revenue Management is long haul vital, brings all income with their profitability into thought, can offer low rates even high demand period.
The ascent of the web in the 21st century added an alternate measurement to this field, specifically Online Travel Agencies and Review Portals. This advancement expanded unpredictability of conventional Hotel Revenue Management methodologies while it additionally gave better approaches to affordably and unbiased measure both client satisfaction and pricing.
With the end goal of demand analysis, the general market is isolated into different segments- business, meetings and groups, and leisure/wholesale - focused around the way of travel. The reason for sectioning the market sector is to characterize significant sorts of interest, distinguish client attributes, and evaluation future development patterns. A fourth fragment, extended stay, is incorporated sought after analysis when the business obliges hotel that have the capacity to serve guest that stay for five nights or

Show More
Related

  • Wgu Audit Task

    529 Words  | 3 Pages

    Clients must keep records and books of accounts including cash book, sales ledger, purchases ledger and general ledger. Supporting documents such as invoices, bank statements, pay-in slips, cheque butts, and receipts for payments, payroll records and copies of receipts issued should be retained. A valuation of the stock in trade should be made at the end of the accounting period and the appropriate records maintained. Company should record sufficient to explain each transaction and to enable a true and fair profit & loss account and balance sheet to be prepared. At the end of the accounting period, a physical stock-take should be made to ascertain the quantity and the cost of the stock in hand or the cost of work in progress statements and

    Read More

  • Transnational Strategy Of Lufthansa

    1545 Words  | 7 Pages

    For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory

    Read More

  • Hilton Garden Inn Marketing Strategy

    1248 Words  | 5 Pages

    They offers only five star and four star room and the company is able to charge its customers at premium level. Place The goods and services provided by the hotel made available to the customers at a place where they can conveniently make purchase. It refers to the channel or the route through which goods and services move from the source to the final user. Place could be the intermediaries, distributors, wholesalers and

    Read More

  • Pricing Strategy And The Pricing Strategy: Dyson

    1009 Words  | 5 Pages

    4.4 Pricing Strategy For a number of reasons, price is one of the most important aspects of an effective marketing strategy (Gerstein & Friedman, 2015). First, price is the only marketing variable that generates revenue. Second, buyers see price as an attribute of value (Tanner & Raymond, n.d.). Consequently, an organization must carefully assess its internal and external environment to choose the most effective pricing objective, which—in turn—will drive a product’s initial pricing strategy.

    Read More

  • The External Environment In The Airline Industry

    1563 Words  | 7 Pages

    bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies. Therefore, for airlines they need to keep customers in the fold by providing air miles system to gain customers' attention and retain them.

    Read More

  • Rosewood Hotels Case Study

    1037 Words  | 5 Pages

    CASE JOURNAL-ROSEWOOD HOTEL& RESORTS Rosewood’s management is on the right track to increasing brand awareness among its customers by pursuing the corporate branding strategy. Implementation of the corporate branding strategy not only increases the number of repeat visitors to the hotels, but also increases the gross profits made by the company by $2,599,000. Corporate branding has a positive impact on the customer lifetime value as well. Rosewood Hotels & Resorts is a privately owned hotel management company that is known for its unique properties like The Carlyle and the Mansion on Turtle Creek that differentiates the company from other luxury hotel competitors.

    Read More

  • Holiday Inn: Porter's Five Forces Of Industry

    1384 Words  | 6 Pages

    The Five Competitive Forces of Industry will influence prices, costs and investment (Porter, 1980). The potential retaining of customers, profitability of a holiday inn can be determined by being aware of the strengths and weaknesses of the hotel industry. (Figure 2.2: Porter’s Five Forces Model (Source: Adapted after Porter,2008) Porter’s 5 model helps in success of Holiday inn between suppliers and buyers. Giving customers the service they are looking for, acquire customers, retain customers and looking externally how the competitors are doing is very important. To ignore the power of customer relationship is not an option.

    Read More

  • Price Discrimination In Hotel Industry

    777 Words  | 4 Pages

    In the case of hotels, suppliers create different consumer segments, we can relate to them as lower-end consumers, and higher-end consumers. Obviously, hotels cannot set the price that higher-end consumers are willing to pay, because all lower-end consumers will not be able to afford the good. Inversely, if hotels set the price that lower-end consumers are willing to pay, higher-end consumers gain huge consumer surplus, thus lowering the profit for the suppliers. In order to take the consumer surplus, hotels keep lower prices for some rooms in order to target lower-end consumers and offer some higher quality rooms (for example presidential suits) to target higher-end consumers. The difference in revenues providing different rooms and the same ones is seen below.

    Read More

  • Jetblue Operations Management Report

    2269 Words  | 10 Pages

    JetBlue’s operations strategy is evident from its choice of location from which they operate since location setup is one of the most important strategic decisions in operations management. They placed their main operations headquarter in the New York City, a city with the population of almost 19 million people (jetBlue, 2013). This fact alone helps them to fly their airlines in their full capacity almost all the time which ensures their business profitability. Their choice of locations fulfills the first and foremost part of the operations management, demand and competition location. It is easily understandable that it is a good practice to choose location of an organization where the product or service they are giving will have demand and will have enough population to maintain the level of demand.

    Read More

  • SWOT Analysis Of Flydubai: Low Fist Airlines

    1467 Words  | 6 Pages

    For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive

    Read More

  • Intercontinental Hotel Marketing Strategy

    1794 Words  | 8 Pages

    Intercontinental Hotels is using the market differentiation strategy in segmenting its market into appropriate market divisions based on characteristics of the varying needs and characteristics of the target markets. The company has more than 3500 hotels in over 100 countries with around 535000 guest rooms. It has established a substantial customer base with over 120million customers whose preferences vary based on price and quality expectations. The Intercontinental group is made up of many brands such as the Intercontinental Hotels and Resorts, Holiday Inn Garden Court, Crown Plaza Hotels & Resorts, SunSpree, Holiday Inn, Staybridge Suites, Holiday Inn Family Suites Resort, Holiday Inn Express, Holiday Inn Select, Holiday Inn, and Candlewood

    Read More

  • Relationship Between Hospitality And Tourism Industry

    1572 Words  | 7 Pages

    To be sucessful in this industry we need a lot of and loyal customers. The loyal customers will keep coming back to the same place if they satisfied through the place they have visited. Customer loyalty give the most important impact towards hospitality and tourism industry. “Hospitality refers

    Read More

  • Intercontinental Hotel Group Case Study

    1617 Words  | 7 Pages

    InterContinental Hotel Group (IHG) is among the largest hotel of the world and comprises of hotel seven hotel brands. Such as Holiday Inn, InterContinental, Hotel Indigo, Candlewood, Crowne Plaza, Staybridge Suites, and Holiday Inn Express. IHG also has to face the problem of credit crunch due to which their performance and growth has been impacted adversely. This hotel enjoys strong presence in the era of economic uncertainty such as credit crunch and fears of recession because of its famous brand Holiday Inn. However, in these years of crisis the share of the group dropped by about 50% because of presence of credit crunch.

    Read More

  • Hotel Variability

    702 Words  | 3 Pages

    One of the characteristic of service like variability services are highly variable due to service quality depends on who provides, where and when they are provided. Variability is opposite meaning of consistently which mean no fixed pattern and hard to change or control. Variability is a negative attribute for a hotel because it can be defined as risk and uncertainty. To avoid any barriers to hotel’s operation, it is important to identify types of customer variability and then create strategies to manage variability Four Seasons Hotel uses reduction strategy to deal with arrival variability by offering room reservation services. It requires guest to make room appointments or reservation first due to people will not want the service at the same

    Read More

  • Disadvantages Of Digital Business

    1600 Words  | 7 Pages

    Introduction “Companies today are rushing headlong to become more digital… This often results in piecemeal initiatives or misguided efforts…[regarding their use of social media platforms]” (Dorner and Edelman, 2015:1) In a society where social media has a profound impact on businesses we ask ourselves just how effective can it be? And if not effective, what are the negative impacts?

    Read More

More about Hotel Distribution Case Study

Open Document