바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

Distribution Channel Model for Hotel Revenue Management: Lessons from Hoteliers and E-Intermediaries

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2022, v.20 no.2, pp.19-29
https://doi.org/https://doi.org/10.15722/jds.20.02.202202.19
IBRAHIM, Niko
PUTRA, Panca O. Hadi
HANDAYANI, Putu Wuri
  • Downloaded
  • Viewed

Abstract

Purpose: Understanding the distribution channel is a foundational element of successful hotel revenue management. This study aims to assess hotel distribution network partnerships and develops a model that can be utilized to ensure hoteliers are not becoming increasingly reliant on a single channel, optimize their market exposure, and maximize their portion of the overall worth of the network. Research design, data and methodology: This study utilizes a grounded theory approach to form a theoretical model by analyzing and examining the current practice of hotel distribution management through interviews with 15 stakeholders in Indonesia, such as hoteliers, online travel agents, wholesalers, and connectivity managers. Results: Based on data analysis, we describe hotel distribution elements, revenue team, managed channels, and channel prioritization for a different type of hotel. Finally, we propose a distribution channel model that comprises hotel teams, customer types, indirect channels, and direct channels. Conclusions: The model contributes to the literature by exploring the options of distribution channels for various hotel types to support hotel revenue management practice. By utilizing our model, practitioners can have a complete picture regarding the strategic choice of the channel by considering their hotel capacity and market target.

keywords
Hotel, Distribution Channel, Revenue Management, Tourism Supply Chain, Grounded Theory

Reference

1.

Beritelli, P., & Schegg, R. (2016). Maximizing online bookings through a multi-channel-strategy: Effects of interdependencies and networks. International Journal of Contemporary Hospitality Management, 28(1), 68-88. https://doi.org/10.1108/IJCHM-07-2014-0326

2.

Buhalis, D. (2008). Relationships in the Distribution Channel of Tourism. International Journal of Hospitality & Tourism Administration, 1(1), 113-139. https://doi.org/10.1300/J149V01N01_07

3.

Carroll, B., & Siguaw, J. (2003). The Evolution of Electronic Distribution: Effects on Hotels and Intermediaries. Cornell Hospitality Quarterly, 44(4), 38-50. https://doi.org/10.1177/0010880403444004

4.

Cazaubiel, A., Cure, M., Johansen, B. O., & Vergé, T. (2020). Substitution between online distribution channels: Evidence from the Oslo hotel market. International Journal of Industrial Organization, 69, 102577. https://doi.org/10.1016/j.ijindorg.2019.102577

5.

Cespedes, F. V., & Corey, E. R. (1990). Managing multiple channels. Business Horizons, 33(4), 67-77. https://doi.org/10.1016/0007-6813(90)90060-O

6.

Cetin, G., Cifci, M. A., Dincer, F. I., & Fuchs, M. (2016). Coping with reintermediation: The case of SMHEs. Information Technology and Tourism, 16(4), 375-392. https://doi.org/10.1007/s40558-016-0063-2

7.

Charmaz, K. (2014). Constructing Grounded Theory. SAGE Publications.

8.

Chen, M.-J., Farh, J.-L., & MacMillan, I. C. (1993). An Exploration of the Expertness of Outside Informants. Academy of Management Journal, 36(6). https://journals.aom.org/doi/abs/10.5465/256823

9.

Choi, S., & Kimes, S. E. (2002). Electronic Distribution Channels’Effect on Hotel Revenue Management. The Cornell Hotel and Restaurant Administration Quarterly, 43(6), 23-31. https://doi.org/10.1016/S0010-8804(02)80015-5

10.

Corbin, J., & Strauss, A. (2015). Basics of Qualitative Research. SAGE Publications.

11.

Dieck, M. C. T., & Fountoulaki, P. (2018). Tourism distribution channels in European island destinations. International Journal of Contemporary Hospitality Management, 30(1), 326-342. https://doi.org/10.1108/IJCHM-12-2016-0649

12.

Domingo-Carrillo, M. Á., Chávez-Miranda, E., & Escobar-Pérez, B. (2020). Scientific production on revenue management in tourism on Web of Science and SCOPUS. Current Issues in Tourism, 23(7), 880-905. https://doi.org/10.1080/13683500.2018.1564738

13.

Eisenhardt, K. M. (1989). Building Theories from Case Study Research. The Academy of Management Review, 14(4), 532. https://doi.org/10.2307/258557

14.

González-Serrano, L., & Talón-Ballestero, P. (2020). Revenue Management and E-Tourism: The Past, Present and Future. Handbook of E-Tourism, 1-28. https://doi.org/10.1007/978-3-030-05324-6_76-1

15.

Green, C. E., & Lomanno, M. V. (2012). Distribution Channel Analysis : A Guide for Hotels. The HSMAI Foundation.

16.

Guillet, B. D. (2020). An evolutionary analysis of revenue management research in hospitality and tourism: Is there a paradigm shift? International Journal of Contemporary Hospitality Management, 32(2), 560-587. https://doi.org/10.1108/IJCHM-06-2019-0515

17.

Guillet, B. D., & Chu, A. M. C. (2021). Managing hotel revenue amid the COVID-19 crisis. International Journal of Contemporary Hospitality Management, 33(2), 604-627. https://doi.org/10.1108/IJCHM-06-2020-0623

18.

Guillet, B. D., & Mohammed, I. (2015). Revenue management research in hospitality and tourism: A critical review of current literature and suggestions for future research. International Journal of Contemporary Hospitality Management, 27(4), 526-560. https://doi.org/10.1108/IJCHM-06-2014-0295

19.

Hayes, D. K., & Miller, A. A. (2011). Revenue Management for the Hospitality Industry. Wiley.

20.

Ivanov, S. (2014). Hotel revenue management: from theory to practice. In Anatolia (Vol. 27, Issue 2). https://doi.org/10.1080/13032917.2015.1115947

21.

Ivanov, S., & Ayas, Ç. (2017). Investigation of the revenue management practices of accommodation establishments in Turkey: An exploratory study. Tourism Management Perspectives, 22, 137-149. https://doi.org/10.1016/j.tmp.2017.03.007

22.

Kang, B., Brewer, K. P., & Baloglu, S. (2007). Profitability and survivability of hotel distribution channels: An industry perspective. Journal of Travel and Tourism Marketing, 22(1), 37-50. https://doi.org/10.1300/J073v22n01_03

23.

Kim, H., Ham, S., & Moon, H.-Y. (2012). The impact of hotel property size in determining the importance of electronic distribution channels. Journal of Hospitality and Tourism Technology, 3(3), 226-237. https://doi.org/http://dx.doi.org/10.1108/17579881211264503

24.

Kimes, S. E. (1989). The Basics of Yield Management. Cornell Hotel and Restaurant Administration Quarterly, 30(3), 14-19. https://doi.org/10.1177/001088048903000309

25.

Kimes, S. E. (2003). Revenue management: A retrospective. The Cornell Hotel and Restaurant Administration Quarterly, 44(5-6), 131-138. https://doi.org/10.1016/S0010-8804(03)90117-0

26.

Kimes, S. E., & Ho, J. (2018). Revenue management in luxury hotels. Journal of Revenue and Pricing Management, 17(4), 291-295. https://doi.org/10.1057/s41272-017-0113-1

27.

Kotler, P., & Armstrong, G. (1996). Principles of Marketing (7th ed.). Prentice Hall College Div.

28.

Kracht, J., & Wang, Y. (2010). Examining the tourism distribution channel: Evolution and transformation. International Journal of Contemporary Hospitality Management, 22(5), 736-757. https://doi.org/10.1108/09596111011053837

29.

Law, R., Leung, R., Lo, A., Leung, D., & Hoc Fong Nang, L. (2014). Distribution channel in hospitality and tourism Revisiting disintermediation from the perspectives of hotels and travel agencies. 27(3), 431-452. https://doi.org/10.1108/IJCHM-11-2013-0498

30.

Le, N. T., Pearce, D. G., & Smith, K. A. (2018). Distribution channels and ownership of upmarket hotels in a transition economy. International Journal of Hospitality Management, 68, 50-58. https://doi.org/10.1016/j.ijhm.2017.09.008

31.

Lei, S. S. I., Nicolau, J. L., & Wang, D. (2019). The impact of distribution channels on budget hotel performance. International Journal of Hospitality Management, 81, 141-149. https://doi.org/10.1016/j.ijhm.2019.03.005

32.

Marinov, S., & Kazandzhieva, V. (2010). Improving the distribution of Bulgarian seaside holiday hotels. UTMS Journal of Economics, 1(1), 29-38. https://ssrn.com/abstract=1967378

33.

Meyer, D. F., & Meyer, N. (2015). The role and impact of tourism on local economic development: A comparative study and leisure. African Journal for Physical, 21(1), 197-214. https://hdl.handle.net/10520/EJC172415

34.

O’Connor, P. (2016). Distribution channel management in hotel chains. The Routledge Handbook of Hotel Chain Management, 11531, 251–261. https://doi.org/10.4324/9781315752532

35.

O’Connor, P. (2019). Online tourism and hospitality distribution: a perspective article. Tourism Review, 75(1), 290-293. https://doi.org/10.1108/TR-06-2019-0216

36.

O’Connor, P., & Frew, A. J. (2002). The future of hotel electronic distribution: Expert and industry perspectives. Cornell Hotel and Restaurant Administration Quarterly, 43(3), 33-45. https://doi.org/10.1016/S0010-8804(02)80016-7

37.

O’Connor, P., & Frew, A. J. (2004). An evaluation methodology for hotel electronic channels of distribution. International Journal of Hospitality Management, 23(2), 179-199. https://doi.org/10.1016/J.IJHM.2003.10.002

38.

Pearce, D. G., & Schott, C. (2005). Tourism Distribution Channels:The Visitors’ Perspective: Journal of Travel Research, 44(1), 50–63. https://doi.org/10.1177/0047287505276591

39.

Pearce, D. G., Tan, R., & Schott, C. (2007). Distribution channels in international markets: A comparative analysis of the distribution of New Zealand tourism in Australia, Great Britain and the USA. Current Issues in Tourism, 10(1), 33-60. https://doi.org/10.2167/cit290.0

40.

Pezenka, I., & Weismayer, C. (2020). Which factors influence locals’ and visitors’ overall restaurant evaluations? International Journal of Contemporary Hospitality Management, 32(9), 2793-2812. https://doi.org/10.1108/IJCHM-09-2019-0796

41.

Raab, C., Berezan, O., Christodoulidou, N., Jiang, L., & Shoemaker, S. (2018). Creating strategic relationships with online travel agents to drive hotel room revenue: An OTA perspective. Journal of Hospitality and Tourism Technology, 9(1), 121-135. https://doi.org/10.1108/JHTT-10-2016-0069

42.

Shoemaker, S., Lewis, R. C., & Yesawich, P. C. (2006). Marketing Leadership in Hospitality and Tourism: Strategies and Tactics for Competitive Advantag (4th ed.). Prentice Hall.

43.

Stangl, B., Inversini, A., & Schegg, R. (2016). Hotels’ dependency on online intermediaries and their chosen distribution channel portfolios: Three country insights. International Journal of Hospitality Management, 52(1), 87-96. https://doi.org/10.1016/j.ijhm.2015.09.015

44.

Szende, P. (2020). Hospitality Revenue Management: Concepts and Practices. CRC Press.

45.

Wang, X. L., Heo, C., Schwartz, Z., Legohérel, P., & Specklin, F. (2015). Revenue Management: Progress, Challenges and Research Prospects. Journal of Travel & Tourism Marketing, 32(7), 1-28. https://doi.org/10.1080/10548408.2015.1063798

46.

Xiang, Z., Magnini, V. P., & Fesenmaier, D. R. (2015). Information technology and consumer behavior in travel and tourism:Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, 244-249. https://doi.org/10.1016/J.JRETCONSER.2014.08.005

47.

Yin, C. H., Goh, E., & Law, R. (2019). Developing interorganizational relationships with online travel agencies (OTAs) and the hotel industry. Journal of Travel & Tourism Marketing, 36(4), 428-442. https://doi.org/10.1080/10548408.2019.1568951

48.

Zhang, X., Song, H., & Huang, G. Q. (2009). Tourism supply chain management: A new research agenda. Tourism Management, 30(3), 345-358. https://doi.org/10.1016/j.tourman.2008.12.010

The Journal of Distribution Science