Product Distribution and Revenue Management in Hospitality Industry

Running Head: PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT 1
Product Distribution and Revenue management
Name:
Institution

PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT 2
Table of Contents
Introduction......................................................................................................................................3
Distribution channels.......................................................................................................................3
Online travel Agents. (OTA).......................................................................................................4
The hotel Website........................................................................................................................4
Trends in tourism and hospitality that impact distribution and revenue management....................5
Improved technology...................................................................................................................5
Adopting sustainability and corporate social responsibility........................................................5
Overview of the current strategies...................................................................................................6
Stakeholder communication.........................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT 3
Introduction
Revenue or yield managers in the hotel and hospitality industry ensure that the assets of a
particular hotel are rented at the best prices because the hotel industry derives its profit from
capacity. The revenue managers are tasked with analyzing and monitoring the accounts
department of a hotel, creating financial projections and determining the eligibility of offering
discounts while keeping track of sales and reservation. Some of the skills of revenue managers
include relationship management, analytical skills and technology skills. Relationship
management are critical skills for maintaining a good rapport with both internal and external
stakeholders (Cetin, Demirciftci & Bilgihan, 2016). For example, the revenue manager at Hilton
hotel can create a good relationship with the sales team through providing mentoring programs
and guiding them on effective accounting skills (Debortoli, Müller & vom Brocke, 2014).
Additionally, the revenue manager also needs to prioritize the good relationship with IT partners
such as Online Travel Agents, to increase the number of customers (Ellinger, A & Ellinger, D,
2014). Analytical skills enables the manager to predict trends and opportunities in the hotel
industry. It enables them to understand data and make quick and informed decision such as
adjustment of the price. Following the advent of technology, revenue managers should also have
technology skills because many hotel functions such as reservations are made online (Ferguson,
Mark and Smith, 2016). The managers should also be able to interact with revenue management
software programs and also be able to pull data from online sources.
Distribution channels
Distribution channels in the hospitality industry refers to the different platforms or
methods that the consumer uses in booking for the hotel. A good distribution channel helps in
marketing of the hotel and improves sales by attracting more customers (Thakran & Verma,
2013). It is important for the hotels to diversify their distribution channels to reach a wider client