You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose.

The traditional distribution channels for the hotel industry include the hotel’s own website, online travel agents, Global Distribution Systems (or GDS), and wholesalers. Each of these approaches has its own set of benefits and drawbacks when picked as a preferred or one of the preferred ways to deliver the rooms. Hence the hotel management team should carefully consider their environment and target customer base when making this decision. It is important to specify that modern hotels rarely use only one of the outlined options, looking to maximize their market reach. It is more common for a hotel to take part in several, or even all of the options described, despite the operation management difficulties it might create.

Establishing a hotel’s own website ensures the firm’s exclusive access to its customer base and the subsequent profits without having to provide a share to the middleman platform. Additionally, the hotel, by logical extension, has full control over its website’s contents and wouldn’t have to navigate the somewhat competitive environment of the platform websites. The consumers wouldn’t be exposed to the special offers and potentially lower prices of the hotel’s direct competitors while browsing for rooms. However, the development process of a user-attractive website and its maintenance might be a costly investment. Its promotion would also fully be a hotel’s responsibility and could require an additional marketing budget.

Online travel agencies level up the visibility of a small family hotel and the branch of an internationally known hospitality chain. They provide an even playing field and thus are often one of the best shots for smaller local hotels. However, arguably in the modern environment, said platforms have become commodified. Their efficiency in providing equal opportunities to smaller branches might be called into question, as when both smaller and larger hotels have access to the platforms, the latter remain in the more privileged position. Additionally, a hotel would have to provide the online travel agency with a share of its profits, which is always a disadvantage, and during the COVID aftermath, particularly so.

A wholesale distribution channel is largely similar to the aforementioned one, but in this case, the middleman buys the bulk of hotel rooms by itself for the purpose of reselling them later. It provides the hotel with maximized occupancy and guaranteed rates, as well as securing a certain amount of revenue. However, within this approach, hotels would have to provide a significant discount to the bulk buyer and, once again, lose out on potential profits.

The Global Distribution Systems channel, commonly referred to as GDS, is also known as the corporate travel market system. It provides a range of travel-related services to clients, including car rentals and local flight monitoring. Hotel room distribution is one of the services included in a GDS, and the firm has a high chance of attracting high-budget clients willing to pay for the whole package. On the downside, the users of such systems would have to, once again, sacrifice the share of their profits and deal with the competitors located on the same platform.

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Academic.Tips. (2022) 'You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose'. 7 October.

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Academic.Tips. (2022, October 7). You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose. https://academic.tips/question/you-have-built-a-new-4-hotel-with-200-rooms-on-a-beach-of-a-greek-island-discuss-various-way-how-you-would-make-your-rooms-available-to-end-users-hotel-guests-clearly-point-out-advantages-but-als/

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Academic.Tips. 2022. "You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose." October 7, 2022. https://academic.tips/question/you-have-built-a-new-4-hotel-with-200-rooms-on-a-beach-of-a-greek-island-discuss-various-way-how-you-would-make-your-rooms-available-to-end-users-hotel-guests-clearly-point-out-advantages-but-als/.

1. Academic.Tips. "You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose." October 7, 2022. https://academic.tips/question/you-have-built-a-new-4-hotel-with-200-rooms-on-a-beach-of-a-greek-island-discuss-various-way-how-you-would-make-your-rooms-available-to-end-users-hotel-guests-clearly-point-out-advantages-but-als/.


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Academic.Tips. "You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose." October 7, 2022. https://academic.tips/question/you-have-built-a-new-4-hotel-with-200-rooms-on-a-beach-of-a-greek-island-discuss-various-way-how-you-would-make-your-rooms-available-to-end-users-hotel-guests-clearly-point-out-advantages-but-als/.

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"You have built a new 4* hotel with 200 rooms on a beach of a Greek island. Discuss various way how you would make your rooms available to end-users (hotel guests). Clearly point out advantages but also disadvantages of each distribution (sales) channel you plan to choose." Academic.Tips, 7 Oct. 2022, academic.tips/question/you-have-built-a-new-4-hotel-with-200-rooms-on-a-beach-of-a-greek-island-discuss-various-way-how-you-would-make-your-rooms-available-to-end-users-hotel-guests-clearly-point-out-advantages-but-als/.

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