Dear member of our community, the topic we will address in our second article is the hotel distribution ecosystem.

In the complex scenario of hotel distribution, various stakeholders play crucial roles in ensuring effective sales and a positive experience for tourists around the world. This ecosystem, as described by several authors, involves hotels, tour operators, destination management companies (DMCs), online travel agencies (OTAs), and travel agents.

The Dance of Players: Hotels, Tour Operators, and OTAs

At the core of this ecosystem are airlines, hotels, or tourism companies, the true providers of the customer experience. They actively collaborate with tour operators and OTAs to maximize their presence both online and offline, seeking to secure reservations. Tour operators, in turn, offer comprehensive packages that include flights, accommodation, and activities, either working directly with hotels or through intermediaries.

OTAs, such as Booking.com and Expedia, operate online, allowing guests to research and book rooms, acting as intermediaries and charging a commission for their services. The growth of these entities has been remarkable, driven by constant technological evolution. Travel agents also act as intermediaries, assisting guests in planning and booking their trips, choosing between direct purchases from hotels or through OTAs.

Distribution Channels: The Importance of Understanding

The distribution channel is the avenue through which hotels market rooms to guests, directly impacting revenue and business success. Effective understanding of the distribution channel is vital for aspects such as market reach, competitive pricing, inventory management, and brand reputation management.

The differentiation between online and offline distribution is crucial in this ecosystem. Online distribution, through channels such as booking websites, OTAs, and comparison engines, is essential in the digital era. Hotels can collaborate with various OTAs, such as Booking.com and Expedia, to maximize exposure and ensure bookings. Careful management of this distribution is necessary to maintain competitive prices and a consistent strategy.

Offline Distribution and Its Resilience

While online distribution gains prominence, offline distribution, characterized by traditional sales through travel agencies and tour operators, maintains its relevance. Especially in luxury hotels and resorts, many customers prefer to book through agencies. Travel agents and tour operators play crucial roles in the overall image of the destination and hotel units.

The COVID-19 pandemic brought significant changes, impacting offline distribution. Many agencies and operators were financially affected, prompting hotels to quickly adapt to the increased demand for online bookings. The current scenario underscores the importance of flexibility and adaptation in the hotel distribution ecosystem.

In summary, the complexity of the hotel distribution ecosystem requires deep understanding and strategic management. Harmony among hotels, tour operators, OTAs, and travel agents drives the offering of choices to customers, providing a comprehensive and competitive travel experience.

We look forward to your visit for more analyses and insights on our Tourism Lab blog.

Thank you for following us,

Member of your Tourism Lab.