Analysis of Key Markets and Distribution Channels in Tourism

This report provides a detailed analysis of the tourism sector, focusing on the key markets and distribution channels employed by businesses, specifically using Hotel Quintessence as a case study. It explores market segmentation within the tourism industry, emphasizing how businesses target specific customer groups and tailor services to meet their needs. The report examines various distribution channels, including social media, websites, and booking engines, and discusses how these channels enhance revenue generation. It also delves into the impact of technological advancements, such as mobile check-in and AI, on customer service, operational efficiency, and profitability within the accommodation sector. The conclusion highlights the importance of adapting to industry trends to ensure business growth and customer satisfaction.

Key Markets and
Distribution Channels
1

Table of Contents
Summary of tourism sector..........................................................................................................3
Market segmentation...................................................................................................................3
Delivering quality............................................................................................................................4
Analyse the business selected on good service continuum.........................................................4
What are the service expectation surroundings the business and product and services that are
sold?.............................................................................................................................................4
Distribution channels.......................................................................................................................5
Which distribution channels do they use to market and sell their services to enhance revenue. 5
Do they limit the number of passengers or rooms that sold using channels?..............................5
Technologies....................................................................................................................................5
Which technologies advance have made most significant changes in sector..............................5
How to work with technological advancement to enhance customer service.............................5
How to work with technical advancement to increase profitability............................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
2

Summary of tourism sector
In recent times there is high boom in tourism sector as people lifestyle is changing it has
allowed them to travel from one to another. Tourism sector consists of many sub sectors and is
expanded into wide area. The sectors include accommodation, air and rail service, etc.
Accommodation sector provides variety of services and other facilities such as breakfast, off
lodging, rooms, etc. (Gundlach and Krotz, 2020) Moreover, types of services depend on hotel
category. Canada has emerged as a new tourist destination for people usually in winter season.
There are many types of hotels and resorts in country. With growth in tourism sector there is also
rise in its sub sector. Each of them is interrelated with one another. Moreover, tourist places are
connected via road, rail, air, etc. that enable people to easily go there.
It has been analysed that there is high growth in this sector. There are many new and
unique hotels emerging in different areas. Alongside, people are able to access data and
information from internet that has allowed them to search. Furthermore, with rise in labour
supply there is rise in demand as well (Hotel sector in Canada, 2019). Also, new services are
offered to customers on several themes. However, global tourism is rising due to flexibility in
transport services. In Canada there is high rise in accommodation service which is up to 66% in
2018. Also, the revenue per room has increased from $102 to $ 107. It is expected that revenue
will go up to $112. Similarly, there is 2% increase in supply of room services. The room demand
has seen growth of 6.5%. However, more hotels are on sale with rise in investment. This is
because more foreign and local investors are investing in boutique hotel of Canada.
Market segmentation
In tourism sector there are many sub sectors that fulfil needs of customers in unique way.
Also, customers get attracted towards variety of services offered. Their needs and demands vary
from one another (Pawar, 2020). The boutique hotels are known for their luxurious and quirky
environment and provide high quality services. They are differentiated on basis of personalised
services. Basically, they are called as design and lifestyle hotel. Likewise, Hotel Quintessence is
also a small boutique hotel in Canada. It consists of on site restaurant, bar and spa with dine in
terrace. Generally, Hotel Quintessence serve tourists who prefer to do trekking and want to stay
in suite. In addition to it, their secondary market are those couples or customer who want to
spend quality time. However, in both cases they target high class income people and mostly
couples.
3

It is important for Hotel Quintessence to search about customers so that their needs are
identified. For this, there is several types of information which needs to be gathered. This is
because it will help in analysing data and providing services accordingly. Therefore, Hotel
Quintessence should focus in demographic and product characteristics. It is because through that
info gathered will give insight to them regarding whether value of services is generated or not.
The hotel does not use many segmentations for targeting the market. They emphasize on income
level and behaviour.
Hotel Quintessence tourist segment is special interest. Here, they target those whose
interest is in trekking and spending luxury time. As hotel is located near hilly area and it provides
suite services and other facilities thus, it becomes a destination for them (Özoğlu and Topal,
2020).
Delivering quality
Analyse the business selected on good service continuum.
Over the past few decades, Hotel based hospitality is termed out as the key driver of
growth and domination of service sector in nation economies (Gundlach and Krotz, 2020).
Additionally, tangible services within hotel inclusive of acquisition and supply of good and
services such as are tour package, car hire, Restaurant means, pick and drop facilities, tickets and
guide services etc.
Thus, hotel quintessence is taking initiatives to providing superior services that can able
to build long term relations with customers and stakeholders affecting the functioning. In this
context, quality service plays significant components of sustainable development and loyalty.
What are the service expectation surroundings the business and product and services that are
sold?
Service quality within the hospitality industry termed out as to one of crucial components
for gaining sustainable competitive advancement (Pawar, 2020). In the current era, the guest has
lot of expectation at time to experience at hotels. Therefore, customer put their primarily focus
on two factors such as services and price.
With the use of high technical advancement, the hotel providers may provide high
effective services in minimal cost. So, it can be stated that Hotel technology plays the pivotal
role in enhancing guest experience, engaging and retaining guest etc.
4

Distribution channels
Which distribution channels do they use to market and sell their services to enhance revenue.
Distribution channels used by the hotel plays vital role in enhancing the customer
satisfaction. Hotel quintessence uses the channels as social and official website, booking engine,
revenue management software, email marketing and direct selling etc.
In the current era, the hotel must take initiatives to provide artificial intelligence system and
many technology products that can aids to enhance the customers satisfaction and this ultimately
leads to increase organisation profitability.
Do they limit the number of passengers or rooms that sold using channels?
They are using the both traditional and modern channels to render the best services
experience to customers. Therefore, traditional approaches limit the number of passengers to
hotel and this is not a positive sign. Additionally, hotel provides must render the services with
high techniques and this kind of digital communication aids to advance the landscape of guest
satisfaction. This also assist to entity to get reach to number of customers within market.
Technologies
Which technologies advance have made most significant changes in sector.
There are number of technical advancements that plays the crucial role in advancing the
services of hospitality sector (Özoğlu and Topal, 2020). Therefore, services inclusive such as
Mobile check in and digital key, personalised experience, ease of communication, Artificial
intelligence service etc.
This kind of technical advancement that provide ease to customer and also have made the
most significant changes in Hospitality sector (6 Ways Technology Can Improve the Hotel Guest
Experience, 2018). With the advent of digital age, the demand for the product and services as
well all over experience of customer is higher than it has ever been.
How to work with technological advancement to enhance customer service.
Technological advancement within the accommodation sector has helped in reduce cost,
aids to enhance the operational efficiency and also improve the services to customers. Thus,
techniques have helped within the tourism and hospitality industry to replace the human labour
with technological labour. It is one of the effective advancements that has helped as to reduce
the cost to labour and also avoid the issues in the customer service.
5

How to work with technical advancement to increase profitability.
In today's extremely competitive business environment, the most effective key weapon
that can enhance the sustainability within accommodation sector is high technical advancement.
However, with the use of technologies in the constant state of flux and unlocking the new
opportunities to improve customer satisfaction can allows to boost the internal efficiency (DJoy,
Dadwal and Pryce, 2020). Thus, hotels must use the following techniques as to provide online
booking, Artificial intelligence, smart room facilities etc. This can be true to stated that the
accommodation sector must streamline the internal process as this allows the hotel to become
leaner and mean. This aids to offer seamless and effective guest experience.
CONCLUSION
Hereby, it can be concluded that key trends within the hospitality sector has fueled the
business growth and brings tremendous changes. The present report has covered the business
activities of accommodation sector of Hotel quintessence. Also, report has covered key trends,
markets and distribution channels that aids to enhance the guest satisfaction
6

REFERENCES
Books and journals
Gundlach, G.T. and Krotz, R.T., 2020. Resale price maintenance: implications of marketing
trends for the colgate doctrine and the leegin factors. Journal of Public Policy &
Marketing. 39(1). pp.48-61.
Pawar, J.K., 2020. EMERGING TRENDS IN DIGITAL MARKETING IN INDIA. Our
Heritage. 68(27). pp.407-416.
Özoğlu, B. and Topal, A., 2020. Digital Marketing Strategies and Business Trends in Emerging
Industries. In Digital Business Strategies in Blockchain Ecosystems (pp. 375-400).
Springer, Cham.
Joy, J., Dadwal, S.S. and Pryce, P.A., 2020. Innovative Trends in Technology for Marketing of
Events. In Handbook of Research on Innovations in Technology and Marketing for the
Connected Consumer (pp. 374-400). IGI Global.
Nair, B.B., 2020. Heal and Revive: Emerging Trends in Wellness Tourism in Kerala. In Global
Developments in Healthcare and Medical Tourism (pp. 220-235). IGI Global.
Online
Hotel sector in Canada, 2019. [online] Available through : < https://renx.ca/hotels-sector-
booming-canada-cbre-report/>
6 Ways Technology Can Improve the Hotel Guest Experience, 2018. [Online]. Available
through: <https://blog.capterra.com/6-ways-technology-can-improve-the-hotel-guest-
experience/>
7