Hotel Distribution Channels Management & E-commerce Impact

This report examines the role of distribution channels in the hospitality industry, particularly focusing on Horwath Hotel's strategies for improvement. It discusses the relationship between distribution channels and the marketing mix, highlighting the importance of online visibility and customer reviews. The report analyzes the evolution of the distribution landscape, key issues, and trends, including the impact of e-commerce and digital platforms. It emphasizes the need for hotels to adapt to changing market dynamics, leverage online channels, and utilize meta-search sites to attract travelers. Furthermore, the report explores the opportunities and challenges presented by digital technology, such as company websites and social media, and their impact on channel management, customer satisfaction, and cost reduction. The conclusion suggests that Horwath Hotel should enhance its marketing strategy and distribution channels, focusing on social networking sites and online presence to build a strong market image.

Hospitality Distribution
Channels Management

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY-1...................................................................................................................................3
Role of distribution channel and relationship with marketing mix.............................................3
How the distribution landscape has evolved and the key issues and trends in the hospitality
distribution..................................................................................................................................4
Development and influence of e-commerce and digital platforms in Hospitality distribution
channels.......................................................................................................................................4
Impact of these digital technology on channel management of the hotel..................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Distribution channel for hotels can be refer to chain of different intermediaries hotel
room pass through before it reach the guest. There are different types of distribution channels
i.e., wholesalers, retailers and direct to consumer sales (Ali and et.al., 2021). Present report will
lay emphasis on how Horwath hotel can build its image. In the report distribution channel and its
relation with marketing mix is being described. Key issues in distribution channel and influence
of e-commerce and digital platforms in hospitality.
ACTIVITY-1
Role of distribution channel and relationship with marketing mix
Distribution channel is used by hotels for promotion and aggressive sales. The main
purpose of the hotels is to create a good visibility on distribution channels so that customers can
easily find good hotels and book room (Hao and Tan., 2019). To improve the sales of the hotels
distribution channel are necessary. The best way to attract lot of customers or guest is online
system. In today's world technology is the only mode by which promotion can be done better.
There are much new software in hospitality which can help hotels to find and gain new
customers or guests.
Nowadays, customers can check reviews on online sites and they can book room
according to their comfort. Horwath hotel in UK should improve its distribution channel to
increase the sale and attract customers (Law., Chan and Wang., 2018). They should provide good
facilities and take help of social media for promotion. The Horwath hotel should provide details
about the hotel on online sites. This will help in improving the reputation and more customers
will come to know about the hotel. The owner of the hotel is required to consider the changes.
Most of the hotels set their prices after analysing the prices of their competitors.
Distribution channel refers to the process in which products and services are made
available to the customers who needs it (Modak and et.al., 2019). Distribution channel is one of
the element of marketing mix. This can be done directly with the help of producer or service
provider and indirectly through distribution channels. Marketing mix, price and product are easy
to understand but the distribution channel is essential as product should reach to correct
customer. Price of distribution channel can be reduced by using more online sites. Manufacturers

who are using direct sales option takes full responsibility for marketing and direct
communication with the consumers. Using most efficient distribution channel will help in
retaining customer .
How the distribution landscape has evolved and the key issues and trends in the hospitality
distribution
Distribution landscape has evolved as earlier when the guest reach the hotel they are
given rooms to stay and there was no guarantee that room will be available or not. The
distribution channel used by the hotel owners nowadays is different as they provide details to the
customers on online sites and consumer can book through websites or any other direct means.
Horwath hotel should also change its distribution channel and move with the latest trends. Due to
Covid -19 scenario is different. The demand is decreased for the both the direct channels and
online travel agents (Schott and Nhem., 2018). Due to change in technology the distribution
channel is changing.
Key issues in the hospitality distribution are, most of the hotel owners described macro
environment for hotel distribution is online marketing. In present situation hotel owners can
increase their revenue through online channels. Horwath hotel owners should use advance
technology as it is an opportunity for them as they can attract more customers. This advancing
technology can be a threat also for Horwath hotel, if competitors have more better technology
then customers will go their. Another issue is changing market trends and dynamics.
Trends in hospitality distribution is increasing online channels for booking. The travellers
have started to visit the online platforms so, hotel owners have expanded their distribution
channel by communicating more with online websites. Another trend in hospitality is increasing
use of meta search sites (Rebelo and et.al., 2019). Hotels can list themselves on meta search sites
or platforms which give fair chance or option to attract travellers and increase their bookings.
Horwath hotel need to identify these trends and change their working pattern to compete in the
market and to build a good image in the market.
Development and influence of e-commerce and digital platforms in Hospitality distribution
channels
The e-commerce and digital platforms has influenced hospitality distribution channels. In
present scenario customers are buying more products through online sites. Purchasing through

online sites is easy and flexible for customers. Many hotel owners are providing customers to
take virtual tour on the website of hotel. Digital platforms provide travellers variety of options
and travellers can compare the prices and services provided by different hotels (Anđelković and
Radosavljević., 2020). Horwath hotel should provide all the information on the sites and also
provide tour packages to the travellers so that booking of the rooms can be increased. Horwath
hotel is a five star hotel having 500 rooms and 2 special restaurants. Hotel owners should provide
all this information on the digital platform in creative and innovative way so that customers get
attracted. E- commerce is an opportunity for the Horwath hotel for promoting and improving
sales in the hotel business. With the rapidly increase in the population people are more using
internet. E- commerce provide opportunities to the hospitality distribution for the growth of the
business. The advantage of e-commerce to Horwtah hotel is to focus on customer satisfaction
and improve the quality of service. It also helps in maintaining good customer relation and get
good reviews (Shi., Liu and Petruzzi., 2019). E -commerce helps hotel owners to reduce cost. E-
commerce saves time and money of the customers and flexible for customers. Horwath hotel
have lot of opportunities as they can do promotion online through social media. Hotel owners
should provide good services to the customers. They should take review from the customers
about the facilities provided by them. E-commerce and digital platforms help the owners in
identifying the customers and make strategies how to attract customers. Horwath hotel should
improve its marketing strategies to increase its sales and revenue.
Impact of these digital technology on channel management of the hotel
Digital tools Opportunities they
provide to hotels in
Europe
Challenges they might face
in European Markets.
Impact of this
digital technology
on channel
management of
hotels.
Company
website
Company website helps
customers to find the best
hotel. It provides
Horwath hotel may face
challenges in European
markets. There are many
Company website
will help in better
promotion of the

opportunity to hotels as
all the essential
information is available
on the website of the
hotel and it is easy for
customers to compare.
It is an opportunity as
Horwath hotel can also
provide details on its
websites.
hotels that provide best
services to the customers.
Horwath hotel should do
market research and
provide better services to
the customers.
Horwath hotel and
also help in
attracting new
travellers.
Social media Social media is one of
the best digital tool used
by many companies for
promotion. It is an
opportunity for Horwath
hotel as it can do
promotion of the hotel
through social media and
attract more travellers.
Challenges face by
Horwath hotel is there are
many hotels that may
provide good services and
at less price. Marketing
strategies of competitor
may be good then Horwath
hotel.
Social media will
help Horwath hotel
in attracting youth
as they are more
active on social
sites.
CONCLUSION
From the report it can be concluded that, Horwath hotel should change its marketing strategy and
distribution channel to build image in the market. Hotel owners should use more social
networking sites so that customers get attracted. Hotel should provide discounts or offers to the
travellers. Horwath hotel should provide all the details on its websites.

REFERENCES
Books and Journals
Ali, F., and et.al., 2021. Response rates in hospitality research: An overview of current practice
and suggestions for future research. Cornell Hospitality Quarterly. 62(1). pp.105-120.
Hao, L. and Tan, Y., 2019. Who wants consumers to be informed? Facilitating information
disclosure in a distribution channel. Information Systems Research. 30(1).pp.34-49.
Law, R., Chan, I. C. C. and Wang, L., 2018. A comprehensive review of mobile technology use
in hospitality and tourism. Journal of Hospitality Marketing & Management. 27(6).
pp.626-648.
Modak, N. M., and et.al., 2019. Analyzing a socially responsible closed-loop distribution channel
with recycling facility. SN Applied Sciences. 1(10). pp.1-14.
Rebelo, J., and et.al., 2019. A hedonic price analysis for the Portuguese wine market: Does the
distribution channel matter?. Journal of Applied Economics. 22(1). pp.40-59.
Schott, C. and Nhem, S., 2018. Paths to the market: analysing tourism distribution channels for
community-based tourism. Tourism Recreation Research. 43(3). pp.356-371.
Anđelković, A. and Radosavljević, M., 2020. The length of the distribution channel as a factor of
its efficiency. Strategic Management. 25(2). pp.9-17.
Shi, H., Liu, Y. and Petruzzi, N. C., 2019. Informative advertising in a distribution
channel. European Journal of Operational Research. 274(2). pp.773-787.
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