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Electronic Channel DistributionHotel Inventory Pearl Brewer, Ph.D. University of Nevada, Las Vegas Channel Distribution Terms Merchant Model Intermediaries negotiates rooms at net rates with suppliers and then sells them at a marked-up price. Opaque Site Brand opaque H Price opaque F Auctions or Name your own Price P Distribution Channels The Hotels Website Chain Website CRS links to travel agent websites or travel agents Auctions or other opaque sites Airline sites Online intermediaries Affiliates Tour Operators Brokers Distribution Channels Handout Issues for Hotels – A Study Of Hotel Operators Control Issues Ability to control inventory manipulating black out dates and allotments inability to close out inventory manipulating availability Ability to control Rates maintaining rate parity not able to change rates as needed Power in the negotiation of Contracts with large companies (Expedia, Travelocity etc.) Control property descriptions across the web. Profitability Issues Revenue Yield Reduction in Margins due to discounting Collecting Payment Transactions costs Ability to Manage Channels Time Knowledge of the channels Ease of use of each channel from the management perspective Data received from channels Skills needed to manage channels Who should be responsible Customer-centric Issues Visibility of sites to the target audience Do they reach the intended market? Market positioning visual ranking of the channel on the user’s search engine display Purchase of keywords Purchase Sponsored links Usefulness of the sites Ease of use for the customer Availability of information Image of the channel in the mind of the customers Corporate Restriction, Technology, and Data Issues Chains and Corporation may place restrictions on their individual properties Technology to control channel management is either not known or understood by management Data collection an use in minimal and difficult Channel Management StrategiesMost Hotels did not have an official st
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