Managing reservations through online distribution channels

Abstract

PurposeThis study aims to evaluate current room inventory distribution strategies of mid‐segment hotels in India, identifying factors that influence the managerial decisions in selecting electronic distribution channel for their property.Design/methodology/approachA qualitative research methodology using structured interviews with senior level managers of five mid‐segment hotels in National Capital Region of India (NCR). Data collected were analysed to generalise the findings of this research.FindingsMid‐segment hotels in NCR rely on traditional distribution channels. Managers do not have sufficient knowledge about electronic distribution. There is a large gap between average room rate of mid‐segment hotels and higher‐level hotels. Demand during the period of study was higher and the trend for higher demand is likely to continue. Repeat business in mid‐segment hotels is nearly 70 percent.Practical implicationsThe present high demand environment demands that the mid‐segment hotels look beyond their existing customer base and distribute inventory through multi‐channels including electronic distribution to achieve higher RevPAR, improved visibility and sustainable customer base for a longer period.Originality/valueThis research attempts to bring out factors that influence managerial decisions while selecting a distribution channel in the context of the Indian hospitality industry.

Bridging the gap: An examination of the relative alignment of hospitality research and industry priorities

“…For example, internet marketing and distribution research was largely focussed on understanding the implications for this new marketing initiative from either a customer perspective (e.g., impact of website design - Fam et al, 2004;Baloglu and Pekcan, 2006;Law and Hsu, 2006; impact of online social forums - Vermeulen and Seegers, 2008;Ye et al, 2008;Dwivedi et al, 2007) or from an operator's perspective (e.g., on-line pricing and distribution strategies - Gazzoli et al, 2008;Chen and Schwartz, 2008;Dabas and Manaktola, 2007;Law et al, 2007; utilisation of emarketing tools - Murphy and Kielgast, 2008;O'Connor, 2008;Schmidt et al, 2008). Given its relative infancy in general business practice, most of the corporate social responsibility (CSR) hotel research has been focussed on current practices (e.g., Henderson, 2007;Holcomb et al, 2007;Chan, 2008) or the link between CSR and hotel performance (e.g., Garcia Rodriguez and del Mar Armas Cruz, 2007;Lee and Park, 2008).…”

The Decision Making in Selecting Online Travel Agencies: An Application of Analytic Hierarchy Process

“…Brand websites were the source of 75% of the brands' centrally booked Internet reservations, compared to 71% in 2004. Reservations booked through brand websites climbed 33%, while bookings through merchant websites, Jupiter (Dabas & Manaktola, 2007) predicts that travel products will eventually outsell other online products by nearly twofold. O'Connor 484 JOURNAL OF TRAVEL & TOURISM MARKETING (2003) found that almost 6 out of 10 leisure travelers actively seek the lowest possible prices for travel services, and a study by the Joint Hospitality Industry Congress (2000) found that consumers expected Internet prices to be lower than those available in bricks-and-mortar channels.…”

Information Technology Applications in Hospitality and Tourism: A Review of Publications From 2005 to 2007

“…This is addressed by ''best price guarantees'' offered by most international hotel chains. However, mid-segment hotels still rely on traditional distribution channels due to their lack of knowledge of electronic distribution (Dabas & Manaktola, 2007).…”