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Channel Distribution Management
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Direct Channels
Direct sales through own website, personal interaction, without intermediaries; greater control and higher profit margins.
Indirect Channels
Use of third parties like travel agencies and online travel agents (OTAs); wider reach but lower profit margins due to commissions.
Online Travel Agents (OTAs)
Expedia, Booking.com; provides broad visibility and convenience but charges commission fees; price competitiveness.
Global Distribution Systems (GDS)
Amadeus, Sabre; connects services including flights, hotels, and car rentals in a single network; mainly used by travel agencies.
Central Reservation Systems (CRS)
Internal system used by hospitality chains to manage reservations; centralized database, real-time inventory, rate management.
Meta-search Engines
Websites like Kayak, Trivago; aggregates data from various sources for comparison; they refer customers to OTAs or direct channels.
Brick-and-Mortar Travel Agencies
Physical travel agencies; personalized service, caters to non-tech savvy customers; however, they are diminishing in number.
Hotel Wholesalers
Buy rooms in bulk and resell to travel agents or OTAs; negotiate special rates; aid in filling large quantities of rooms.
Mobile Applications
Dedicated hospitality apps; offer convenience, mobile-specific deals, and loyalty points; increasing customer engagement.
Tour Operators
Plan and sell packages that include various travel components; convenience for travelers; varied pricing strategies.
Destination Management Companies (DMCs)
Local expertise, offering specialized services; helps in creating unique experiences; emphasis on customization.
Convention and Visitors Bureaus (CVBs)
Promote a destination; offers planner guides, resources for event planning; non-profit, representing a region or city.
Affinity Groups
Groups with a shared interest or purpose; special rates or custom packages; potential for niche marketing.
Retail Travel Agents
Independent agencies; personalized advice and travel planning services; earn commissions from product sales.
B2B Travel Platforms
Connects business suppliers like hotels with corporate clients or other businesses; streamlined procurement, often with negotiated rates.
Last Minute Booking Channels
Sites like HotelTonight; target customers looking for immediate accommodation; potential for selling remaining inventory.
Social Media Platforms
Marketing and engagement through platforms like Facebook, Instagram; direct communication with customers, brand awareness.
Traditional Advertising
Use of print, radio, television; broader reach albeit non-targeted; less measurable compared to digital channels.
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