The distribution system of rooms in the hospitality industry is vast and complex for several reasons. First of all, because it concerns a worldwide market and secondly because of the multiplicity of entities related to hotel distribution.
This article draws on a topic discussed during one of the meetup Hotelier.
Channels of distribution in the Hospitality industry are evolving at the same time that the tourism sector does. In the beginning, when tourism was being generalized and accessible to a larger number of people a distribution system born – now is known as the classic or conventional distribution system.
This distribution channel is constructed as follows:
The customer visits a travel agency, travel agency summited the client’s demand to the Tour operator, the Tour Operator applied a request to incoming agencies via a CRS or else, and finally, the incoming agency registered a reservation with the hotel.
Later GDS where implemented to the hospitality industry, and the Consolidators invented for hotels chain to have a database of hotel’s disponibility- and capacity. This innovation raised a faster way to sell rooms and to prevent overbooking. Traditional distribution system hotels
With the venue of the Internet, the landscape fundamentally changes new entities and new travelers behaviors. We distinguish the OTA’s (online travel agencies) offering customers a faster and direct way to book rooms and compare. Simultaneously, the basis of social traveling starts to raise via travelers communities. Finally, but this is recent, the business specialized in “flash sales” are drowning the hotelier’s distribution system