Distribution Channels in the hotel industry refers to the different ways a hotel sells its rooms and services to guests. Think of it like various paths that connect hotels to potential customers. This includes working with travel websites like Expedia or Booking.com, partnering with travel agents, selling directly through the hotel's website, or through corporate booking systems. It's similar to having multiple store locations to sell products, except in this case, it's about having multiple ways to sell hotel rooms.
Managed Distribution Channels to increase hotel occupancy by 25%
Optimized Distribution Channel mix to reduce commission costs while maintaining bookings
Developed relationships with new Distribution Channels including luxury travel agencies and corporate booking platforms
Typical job title: "Distribution Channel Managers"
Also try searching for:
Q: How would you develop a distribution strategy for a luxury boutique hotel facing heavy competition?
Expected Answer: A strong answer should cover analyzing current market position, identifying target guest segments, selecting appropriate channels that reach luxury travelers, managing rate parity, and maintaining the hotel's exclusive image while maximizing revenue.
Q: How do you measure the success of different distribution channels?
Expected Answer: The candidate should discuss metrics like cost of acquisition, RevPAR (Revenue Per Available Room), channel contribution to overall revenue, booking lead time, and average daily rate from each channel.
Q: How do you handle rate parity across different booking channels?
Expected Answer: Should explain maintaining consistent rates across all platforms while considering commission costs, discussing tools used to monitor rates, and strategies for managing price updates across channels.
Q: What strategies would you use to reduce OTA (Online Travel Agency) dependency?
Expected Answer: Should discuss building direct booking channels, loyalty programs, exclusive offers, strategic use of metasearch engines, and maintaining good relationships with traditional travel agents.
Q: What are the main types of distribution channels in the hotel industry?
Expected Answer: Should be able to list and explain direct channels (hotel website, phone bookings) and indirect channels (OTAs, travel agents, wholesalers) and their basic characteristics.
Q: How do you update rates and availability across multiple channels?
Expected Answer: Should demonstrate knowledge of channel managers, property management systems, and basic revenue management principles for updating rates.