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Channel Distribution Management

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Direct Channels

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Direct sales through own website, personal interaction, without intermediaries; greater control and higher profit margins.

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Indirect Channels

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Use of third parties like travel agencies and online travel agents (OTAs); wider reach but lower profit margins due to commissions.

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Online Travel Agents (OTAs)

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Expedia, Booking.com; provides broad visibility and convenience but charges commission fees; price competitiveness.

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Global Distribution Systems (GDS)

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Amadeus, Sabre; connects services including flights, hotels, and car rentals in a single network; mainly used by travel agencies.

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Central Reservation Systems (CRS)

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Internal system used by hospitality chains to manage reservations; centralized database, real-time inventory, rate management.

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Meta-search Engines

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Websites like Kayak, Trivago; aggregates data from various sources for comparison; they refer customers to OTAs or direct channels.

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Brick-and-Mortar Travel Agencies

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Physical travel agencies; personalized service, caters to non-tech savvy customers; however, they are diminishing in number.

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Hotel Wholesalers

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Buy rooms in bulk and resell to travel agents or OTAs; negotiate special rates; aid in filling large quantities of rooms.

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Mobile Applications

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Dedicated hospitality apps; offer convenience, mobile-specific deals, and loyalty points; increasing customer engagement.

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Tour Operators

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Plan and sell packages that include various travel components; convenience for travelers; varied pricing strategies.

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Destination Management Companies (DMCs)

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Local expertise, offering specialized services; helps in creating unique experiences; emphasis on customization.

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Convention and Visitors Bureaus (CVBs)

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Promote a destination; offers planner guides, resources for event planning; non-profit, representing a region or city.

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Affinity Groups

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Groups with a shared interest or purpose; special rates or custom packages; potential for niche marketing.

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Retail Travel Agents

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Independent agencies; personalized advice and travel planning services; earn commissions from product sales.

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B2B Travel Platforms

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Connects business suppliers like hotels with corporate clients or other businesses; streamlined procurement, often with negotiated rates.

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Last Minute Booking Channels

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Sites like HotelTonight; target customers looking for immediate accommodation; potential for selling remaining inventory.

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Social Media Platforms

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Marketing and engagement through platforms like Facebook, Instagram; direct communication with customers, brand awareness.

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Traditional Advertising

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Use of print, radio, television; broader reach albeit non-targeted; less measurable compared to digital channels.

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