Key Markets and Distribution Channels

This report provides an overview of the tourism sector and focuses on a small boutique hotel in Canada. It discusses market segmentation, delivering quality, distribution channels, and the importance of advanced technology.

Key Markets and
Distribution Channels

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Summary of the tourism sector and Business selected................................................................3
Market Segmentation...................................................................................................................4
Delivering Quality...........................................................................................................................4
Tangible items.............................................................................................................................4
Distribution Channels......................................................................................................................5
Type of distribution channel........................................................................................................5
Number of passengers..................................................................................................................5
Technology......................................................................................................................................5
Importance and usage of advanced technology...........................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A distribution channel can be defined as that chain of businesses which consists of activities
related to providing products and services to ultimate consumers. It can include retailers,
wholesalers and distributors. Internet can also be the part of distribution channel. Present report
will lay emphasis on small boutique hotel situated in Canada. James hotel in Toronto is an
intimate hotel which consists of 10 rooms with stylish décor. It will provide brief overview of
this sector.
MAIN BODY
Summary of the tourism sector and Business selected
Brief overview of sector: Small boutique hotel is an intimate hotel which do not consists of
more than 100 rooms. They provide accommodation and food services to individuals who are
staying with them. It is better than normal hotels as it provides guests with more crazy
experience that lacks the vastness of a normal hotel. Travellers who want to enjoy leisure and
quality time without disturbance of more crowd can go for small Boutique hotels. These type of
accommodation services also have creative and attractive interiors which assists them in
attracting more travellers towards them.
It has been analysed that boutique hotels are growing with an increased pace; more number
of individuals are looking to invest in this sector. Growth of these hotels are been increasing
because of location, quality and attractiveness of services that is being provided by them. In
United Kingdom travellers it has been recorded that travellers are going to invest £26.3 billion,
in this business (Melián-González & Bulchand-Gidumal, (2016). So there is a significant growth
in this sector. Small boutique hotel provides travellers with more reliable and local experience.
By staying in them, travellers can get more connected to destination, they can explore more. In
Canada, these type of accommodation services has seen an incline of 10%. Individuals are
generating more revenue through boutique hotels.
Actual business operating in this sector: The James hotel, Canada is an exclusive small
boutique hotel who are engaged in providing luxurious services to travellers. They have 10 suites
and room and a stylish Furniture’s. This business was established by owners 20 years ago. Hotel
is providing accommodation services to its travellers, they have master suite which consists of
attractive marbled bathroom. They have ideal lounges and facility of hot water Spa in order to
attract consumers. The main and private room in hotel is separated by a Door. Individual can also

conduct business meeting over there, as small boutique hotel provides services like I-pod, I-pad,
personal smartphones etc.
Market Segmentation
Target customers of hotel: The James hotel Canada has segmented their market on
demographic basis, they are targeting people between the early 20s and mid-50s. As they are
engaged in providing high class luxurious services their main target is couples who want to enjoy
quality time with each other (Melián-González & Bulchand-Gidumal, (2016). Small boutique
hotel is also giving opportunity to travellers to dine in executive lounge, they also provide them
with ala carte breakfast. Guest also receive various types of complimentary services like health
club, spa and swimming pool.
Information included: Small boutique hotel that is James hotel lays their emphasis on
segmenting market on demographic basis. They are engaged in doing research about individual’s
personal interest of travellers. There main focus is on leisure travellers who want to take vacation
from everyday mundane life. They want to relax on beaches or in room. So their main focus is on
providing high quality services to these individuals. They are working towards analysing needs
and demands of them so that they can increase their goodwill and reputation.
Specialised tourist segment: There specialised tourist segment is people who have special
interest, like they are targeting couples who wants to have fun and be in touch with nature.
Delivering Quality
Tangible items
In the context of products and services of hotels, it can be said that quality is one of the
main key of the success. Quality is one of the main factor which is being considered by
customers. The James hotel provides luxurious bedrooms to its target market, specially to
married couples. It provides marbled bathroom as well as whirlpool bath, attractive interior
furniture, spacious lounge below. Sophisticated rooms including king-sized bed, balcony which
gives attractive view. All these are main tangible items given by this hotel Melián-González &
Bulchand-Gidumal, (2016).
It is stated that The James hotel identify customers needs and market trends with
marketing activities. In the analyse, it identifies that what its competitors are doing and how it
can take competitive advantages. With the help of market analysis, it maintains service quality

and expectations. By making an effective use of technology, in depth research, it develops
services and quality of all products.
Distribution Channels
Type of distribution channel
The James Hotel provide online reservation or booking facility to its target market and
customers. It has a huge hotel findings and booking engine on its main website. So, it can be said
that focuses on digital marketing and distribution for selling its services and products to its
customers. Rather, website and online distribution of products, it uses third party merchant
model. According to this model, it has a contract with Some Websites like booking. Com which
makes booking available through some travel agents. It has some loyalty programmes which
allow its loyal and potential customers to get extra points by staying in this hotel. It is the best
way of promoting products and distributing services to customers. It helps The James hotel in
maintaining the long-term relationship with its customers. This hotel makes its customers
enthusiastic to use its services. So, it can be said that this company use both online and offline
distribution channels Poletti, (2019).
Number of passengers
By making an effective use of each of the distribution channel it limits number of
passengers as per the number of rooms. It provides all details on website like 15 rooms are
booked already, 10 rooms are left like this. By doing this, it can be said that it limits the number
of passengers as well as rooms. It has critical impacts on its performance. By limiting number of
rooms, it cannot increase sales but on the other hand, by doing this it can maintain quality of
services. By maintaining quality and limiting number of rooms, it makes its loyal customers feel
that they are important for the company. For them quality matters rather quantity. When they
make customers feel that quality is their preference then it increases customers satisfaction.
Technology
Importance and usage of advanced technology
In the context of technology in hotel industry, it can be said that using social media for
online booking and other services playing a vital role. In the context of The James Hotel, it is
stated that it is making an effective use of room service robots. It is one of the best way of saving

time of others. Usage of this technology or room service robot has made significant changes as it
satisfy needs of al types of guests without getting tired and boring. Guests also enjoy this service.
Using technology not only increase sales of hotel but also help hotels in increasing
customers' satisfaction and experience. Using social media and internet for online booking, room
service robots save time of customers. Via Social media and on company's online Website, guest
can get all type of informations which helps them in taking the best buying decision Luan, Zhang
& Zhang, (2020). The James Hotel provide post sales services to guests online which increase
their satisfaction and experience.
Advanced technology, providing Wi-Fi, other facilities and online services, hotel is
increasing its revenue. One of the most important benefit is it decreases labour cost, increase
customer satisfaction which retain customers with the company for the long run. When
customers retain with the company then it increases brand image which attract other customers.
This helps company in increasing sales and revenue as well.
CONCLUSION
From the above study, it has been summarized that technology and quality played a vital
role in hotel industry. It attracts customers towards buying services and products of company
which increases sales and customer’s satisfaction.

REFERENCES
Books and journals
Luan, Y., Zhang, S., & Zhang, J. (2020, January). The application of ISO9000 quality
management system in the development of hotel industry. In 2019 International
Conference on Management Science and Industrial Economy (MSIE 2019). Atlantis
Press.
Melián-González, S., & Bulchand-Gidumal, J. (2016). A model that connects information
technology and hotel performance. Tourism Management. 53. 30-37.
Poletti, E. (2019). Furniture design and digital distribution channels. Systemization and

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