The Complete Guide to Distribution Channels in the Hotel Industry (2023)

In the highly competitive hospitality industry, effective distribution channel management plays a pivotal role in driving bookings and maximizing revenue. Understanding the various hotel distribution channels and how to leverage them is essential for hoteliers to stay ahead in the digital era.

But before we get on to discuss the hotel online distribution strategies and associated technologies, let us us understand the meaning and importance of distribution channels.

Table of Contents

What is a Hotel Distribution Channel?

A hotel distribution channel refers to the platforms or channels through which hotels distribute and sell their inventory to potential guests. These channels can be online or offline and enable hotels to reach a wide audience, expand their market reach, and generate bookings.

What is the Role of Distribution Channels in the Hospitality Industry?

Distribution channels play a crucial role in the success of the hospitality industry, particularly in the hotel sector. These channels serve as the bridge between hotels and potential guests, facilitating the booking process and shaping the overall guest experience.

Here’s how hotel distribution companies play a crucial role in expanding reach and maximize revenue with a vast network of travel agents and distribution partners.

  1. Enhancing Visibility

    Distribution channels significantly contribute to a hotel’s visibility in the market. By partnering with various distribution channels such as online travel agencies (OTAs), global distribution systems (GDS), metasearch engines, and direct booking platforms, hotels can expand their reach to a wide range of potential guests.

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    These channels provide extensive exposure, ensuring that hotels are visible to travelers across different demographics, geographies, and booking preferences. Increased visibility leads to greater brand awareness, attracting more guests and generating higher occupancy rates.

  2. Increasing Revenue

    Effective distribution channel management directly impacts a hotel’s revenue generation. By leveraging multiple distribution channels, hotels can tap into diverse customer segments and capture bookings that they might not have reached otherwise.

    Each distribution channel brings its own customer base and marketing capabilities, enabling hotels to maximize their revenue potential. Moreover, distribution channels often offer dynamic pricing options, allowing hotels to adjust rates based on market demand, competitor analysis, and seasonal trends. This flexibility helps hotels optimize revenue and occupancy rates, ensuring optimal financial performance.

  3. Improving Guest Experience

    Distribution channels play a vital role in shaping the overall guest experience. With the advent of online booking platforms, guests have become accustomed to the convenience of browsing, comparing, and booking hotels at their fingertips.

    Distribution channels provide seamless and user-friendly interfaces, making it easier for guests to find suitable accommodations, explore amenities, and make reservations. Moreover, distribution channels often feature guest reviews and ratings, allowing potential guests to make informed decisions based on the experiences shared by previous visitors. By delivering a positive and streamlined booking process, distribution channels contribute to a positive guest experience from the very beginning of their journey.

  4. Expanding Market Reach

    One of the primary advantages of distribution channels is their ability to expand a hotel’s market reach. Through partnerships with OTAs and GDS platforms, hotels can tap into a vast network of travel agents and agencies. These channels provide access to a global audience of travel enthusiasts and corporate clients, enabling hotels to target different market segments and attract international visitors. Additionally, metasearch engines allow guests to compare prices and amenities across multiple platforms, helping hotels reach price-sensitive travelers and gain a competitive edge. By diversifying distribution channels, hotels can reach new markets and unlock untapped revenue streams.

  5. Read Why: Metasearch is critical for your Direct Bookings Strategy

  6. Strengthening Relationships with Partners

    Distribution channels foster collaboration and partnerships within the hospitality industry. By working closely with OTAs, GDS providers, and other distribution partners, hotels can establish mutually beneficial relationships.

    These partnerships often involve joint marketing campaigns, targeted promotions, and preferred placement on distribution platforms. By cultivating strong alliances, hotels can leverage the marketing expertise and customer base of these partners, resulting in increased visibility and bookings.

  7. Revenue Optimization with Expert Advice

    Hotel distribution companies possess valuable expertise and insights into the hospitality industry. They can provide hotels with expert advice on revenue optimization strategies, pricing tactics, and market trends. These companies have access to data analytics tools that help identify patterns, booking trends, and demand fluctuations, enabling hotels to make informed decisions to maximize revenue.

    Through regular performance analysis and reporting, hotel distribution companies help hotels identify underperforming channels, adjust pricing strategies, and implement targeted marketing campaigns. With their in-depth knowledge of the industry, these companies offer guidance on positioning the hotel within the market, identifying unique selling points, and differentiating from competitors.

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By strategically selecting and managing distribution channels, hotels can effectively position themselves in the market, attract a diverse range of guests, and achieve long-term success.

But to do so, we must understand the different types of online hotel distribution channels.

Which are the Most Popular Types of Hotel Distribution Channels?

Common hotel distribution channels include online travel agencies (OTAs), global distribution systems (GDS), direct bookings through the hotel’s website, metasearch engines, and wholesalers. By utilizing multiple distribution channels, hotels can increase their visibility and accessibility to potential guests.

  1. Online Travel Agencies (OTAs)

    OTAs such as Expedia,, and Agoda are popular distribution channels that provide a platform for hotels to showcase their inventory to a global audience. They offer a wide range of accommodation options and allow travelers to compare prices and book rooms conveniently.

  2. Global Distribution Systems (GDS)

    GDS platforms like Amadeus, Sabre, and Travelport serve as intermediaries between hotels and travel agents. They provide a centralized system for travel agents to access real-time information about hotel availability, rates, and bookings.

  3. Direct Bookings

    Direct bookings refer to reservations made directly through a hotel’s website or reservation system. This distribution channel enables hotels to establish a direct relationship with guests, offering benefits such as higher profit margins and the opportunity to provide personalized experiences.

  4. Metasearch Engines

    Metasearch engines like Google Hotel Search, Trivago, and Kayak aggregate hotel information from various sources and allow users to compare prices and book directly through the platform. They provide a convenient way for travelers to find the best deals and make informed booking decisions.

  5. Read More: Metasearch Engines: A Game Changer for Online Businesses

  6. Wholesalers

    Wholesalers purchase hotel inventory in bulk and distribute it to specific markets or travel segments. They often target niche markets and cater to specific customer needs, such as group travel or package deals.

  7. Read More: How to Benefit from Hotel Wholesalers

What are the Key Aspects of Effective Key Channel Management?

  1. Rate Parity

    Rate parity refers to the consistency of rates across all distribution channels. It ensures that the same room is available at the same price, regardless of the booking platform. Maintaining rate parity is crucial for a hotel’s reputation and guest loyalty. By enforcing rate parity, hotels avoid rate discrepancies that could lead to customer confusion or dissatisfaction. Rate parity also fosters fair competition among distribution channels, preventing price undercutting and maintaining a level playing field for all partners.

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    To achieve rate parity, hotels can implement automated channel management systems that synchronize rates and availability across all platforms in real-time. These systems help hotels maintain rate integrity, reduce manual errors, and ensure consistent pricing for guests.

  2. Inventory Management

    Effective inventory management is vital to avoid overbooking or underselling rooms. Hotels must allocate inventory across different distribution channels to maximize occupancy and revenue. By implementing a centralized inventory management system, hotels can have a real-time overview of their available rooms and distribute them strategically across channels.

    Inventory management systems also enable hotels to implement restrictions and control room allocations based on factors such as room type, rate plans, and booking window. This ensures that inventory is appropriately allocated to different channels, optimizing revenue while avoiding overbooking situations.

  3. Read More: How do Hotels Distribute Inventory to Drive Bookings

  4. Channel Optimization

    Optimizing distribution channels involves selecting the most relevant and profitable channels for a hotel’s target audience. Hotels should evaluate the performance of each channel based on factors such as booking volume, revenue generated, and customer acquisition costs. By identifying the channels that deliver the best results, hotels can allocate resources and marketing efforts effectively.

    Additionally, channel optimization involves continuously monitoring and adjusting the distribution mix based on market trends, customer preferences, and competitor analysis. By staying informed about changing market dynamics, hotels can adapt their distribution strategy to maximize revenue and reach the right audience.

  5. Performance Analysis

    Regular performance analysis is crucial to evaluate the effectiveness of distribution channels and make data-driven decisions. Hotels should track key performance metrics such as conversion rates, average daily rate (ADR), revenue per available room (RevPAR), and return on investment (ROI) for each distribution channel.

    Analyzing performance metrics helps hotels identify underperforming channels, identify areas for improvement, and make informed decisions about resource allocation and marketing strategies. By leveraging data analytics tools and reports, hotels can gain valuable insights into customer behavior, booking patterns, and channel performance, empowering them to optimize their distribution strategy.

  6. Streamlining Operations

    Efficient distribution channel management goes beyond revenue optimization. It also involves streamlining operations and ensuring consistent branding across all channels. Hotels should maintain consistent and accurate information across all distribution platforms, including room descriptions, amenities, and images. Any updates or changes should be promptly reflected across all channels to avoid guest confusion and maintain brand integrity.

    Moreover, streamlining operations involves automating processes wherever possible. Utilizing channel management software, property management systems, and booking engines can help hotels automate inventory distribution, update rates, and availability in real-time, and seamlessly manage reservations.

Embracing the Digital Era: Hotel Online Distribution Strategies

In the digital age, hotels need to adapt to changing consumer behavior and leverage online distribution strategies to stay competitive. By adopting these strategies and leveraging technology, hotels can effectively navigate the online landscape and create a strong online presence.

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  1. Responsive Website Design

    In the era of mobile devices and increasing online bookings, having a responsive website design is crucial for hotels. A responsive website ensures that your hotel’s website is optimized for different screen sizes and provides a seamless user experience across devices. With more travelers using smartphones and tablets to research and book accommodations, a responsive website design improves accessibility, engagement, and conversion rates. It also enhances your search engine rankings and boosts your online visibility, ultimately driving more direct bookings.

  2. Search Engine Optimization (SEO)

    To increase your hotel’s online visibility and attract more organic traffic, implementing effective search engine optimization (SEO) strategies is essential. SEO involves optimizing your website’s content, structure, and metadata to rank higher in search engine results. By researching relevant keywords, optimizing page titles and descriptions, and creating high-quality, keyword-rich content, you can improve your hotel’s visibility on search engines like Google. This, in turn, drives targeted traffic to your website, increases brand exposure, and boosts direct bookings. Regularly monitoring and refining your SEO efforts will help you stay ahead of the competition and attract more guests through organic search.

  3. Social Media Marketing

    Social media platforms have become powerful marketing tools for hotels. Creating a strong social media presence allows you to engage with potential guests, showcase your property’s unique features, and build brand loyalty. By crafting compelling content, sharing stunning visuals, and leveraging user-generated content, you can create a strong emotional connection with your target audience. Social media platforms also offer advertising options that enable you to target specific demographics and reach potential guests. Integrating social media marketing into your online distribution strategy can amplify your brand’s reach, increase engagement, and drive traffic to your website, ultimately leading to more direct bookings.

  4. Online Reputation Management

    In the digital era, online reviews and guest feedback play a significant role in travelers’ decision-making process. Effective online reputation management involves actively monitoring and responding to guest reviews across various platforms. By promptly addressing guest concerns, expressing gratitude for positive feedback, and implementing guest feedback to improve your operations, you can enhance your hotel’s reputation and build trust with potential guests. Positive online reviews and a strong reputation contribute to increased bookings and word-of-mouth recommendations. Implementing reputation management tools and encouraging guests to leave reviews can help you proactively manage your online reputation and maintain a positive brand image.

  5. Technology for Streamlining Online Distribution

    Advancements in technology have revolutionized hotel distribution channel management. By adopting the right technology solutions, hotels can automate processes, improve efficiency, and gain a competitive edge in the dynamic distribution landscape.

    1. Channel Manager: A channel manager is a software solution that helps hotels manage rates, availability, and inventory across multiple distribution channels from a centralized platform. It automates the distribution process, ensuring that room information is up to date across all channels, minimizing the risk of overbooking or rate discrepancies.
    2. Property Management Systems (PMS): A hotel property management system is a comprehensive software tool that assists hotels in managing their daily operations, including reservations, guest profiles, check-ins, check-outs, and billing. Integration with distribution channels allows seamless management of room inventory and rates.
    3. Customer Relationship Management (CRM) Systems: CRM systems enable hotels to maintain and manage guest data, preferences, and interactions. By understanding guest preferences and behavior, hotels can personalize their offerings, enhance guest satisfaction, and cultivate loyalty.
    4. Revenue Management Systems (RMS): RMS software helps hotels optimize their pricing strategies based on market trends, competitor rates, and demand forecasting. It enables hoteliers to dynamically adjust room rates to maximize revenue and occupancy.
    5. Online Reputation Management Tools: These tools assist hotels in monitoring and managing their online reputation by tracking guest reviews and feedback across various review platforms. By promptly responding to reviews and addressing guest concerns, hotels can maintain a positive online presence and attract more bookings.

How to Build a Hotel Distribution Channel Strategy

Building a successful hotel distribution channel strategy involves several key steps.

  1. Identify the target market and guest preferences.
  2. Select relevant distribution channels based on the target audience.
  3. Consider channel costs, commission rates, and potential long-term partnerships.
  4. Implement a channel management system to streamline operations and manage inventory.
  5. Regularly monitor and analyze channel performance to optimize effectiveness.

Best Practices for Maximizing Distribution Channel Performance

In the dynamic landscape of hotel distribution, maximizing the performance of distribution channels is crucial for hotels to stay competitive and drive revenue. By regularly auditing channels, managing pricing and rates strategically, optimizing content, proactively managing guest reviews, and staying abreast of industry trends, hotels can enhance their distribution channel performance and effectively reach their target audience.

  1. Regular Channel Audits

    Performing regular channel audits allows hoteliers to evaluate the performance and effectiveness of their distribution channels. By analyzing metrics such as bookings, revenue, conversion rates, and channel costs, hotels can identify any underperforming channels and make informed decisions to optimize their distribution mix. It’s essential to assess factors like channel reach, target audience alignment, and cost-effectiveness to ensure optimal channel selection and allocation of resources. Regular audits also help identify any technical issues or discrepancies that may impact the guest booking experience and can be addressed promptly.

  2. Pricing and Rate Management

    Effective pricing and rate management is vital for maximizing distribution channel performance. Hoteliers should adopt a dynamic pricing strategy based on market demand, seasonality, and competitor analysis. By leveraging revenue management systems and rate intelligence tools, hotels can set competitive rates that optimize revenue while considering channel-specific pricing rules. It’s crucial to monitor rate parity across distribution channels to maintain consistency and avoid rate disparities that may lead to guest dissatisfaction or loss of bookings. Regularly analyzing pricing data and adjusting rates based on demand fluctuations contribute to improved channel performance.

  3. Content Optimization

    Optimizing content across distribution channels ensures consistency and provides compelling information that drives guest engagement and conversions. Hoteliers should focus on creating high-quality descriptions, captivating visuals, and accurate room information to entice potential guests. Tailoring content to suit the target audience of each channel enhances relevancy and attracts qualified leads. Additionally, optimizing keywords and metadata improves search engine visibility and increases the chances of appearing in relevant searches. Regularly updating content with fresh images, room descriptions, and promotional offers maintains the interest of potential guests and drives bookings.

  4. Guest Reviews Management

    Managing guest reviews is critical for maintaining a positive online reputation and driving bookings through distribution channels. Hoteliers should actively monitor and respond to guest reviews across platforms promptly. Responding to both positive and negative reviews demonstrates attentiveness and engagement with guests. Addressing concerns, expressing gratitude for positive feedback, and resolving issues in a timely manner can significantly influence potential guests’ perception and decision-making. Encouraging guests to leave reviews and leveraging guest feedback to improve services and operations showcases a commitment to guest satisfaction, enhancing the reputation and performance of distribution channels.

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  5. Staying Updated with Industry Trends

    The hospitality industry is continuously evolving, driven by technological advancements and changing guest preferences. Staying updated with industry trends and adopting innovative practices helps hoteliers adapt and optimize their distribution channel performance. Engaging in industry forums, attending conferences, and following industry publications enable hoteliers to gain insights into emerging trends, technology solutions, and best practices. Embracing new distribution platforms, adopting new technologies, and understanding evolving guest behaviors empower hotels to stay ahead of the competition and maximize the effectiveness of their distribution channels.

Distribution channels are the lifeblood of the hotel industry, connecting hotels with potential guests across the globe. By understanding the intricacies of hotel distribution channels and effectively managing them, hoteliers can enhance their visibility, drive bookings, and increase revenue.

Looking to navigate the dynamic landscape of distribution channels and leverage them to their advantage in the hospitality industry? Connect with us.


What are the hotels distribution channels? ›

A mix of direct channels, such as a hotel's website, and indirect channels such as online travel agents (OTAs), Global Distribution Systems (GDS) and wholesalers are typically used.

What are examples of distribution channels use in the hospitality industry? ›

A hotel distribution channel can be any method or platform by which your hotel sells its rooms. Examples include online travel agents, booking engines (website + social media), phone/email/walk-ins, metasearch, global distribution system.

What is distribution channel management in hotel industry? ›

Channel management in the hotel industry is the process of managing online distribution channels to sell your hotel inventory to various agents anywhere in the world, including online travel agents (OTAs), retail travel agents, Meta Search Engines (or aggregators) and Global Distribution Systems (GDS).

What are the 4 parts of the distribution channel? ›

Distribution channels include wholesalers, retailers, distributors, and the Internet.

What are the 7 channels of distribution? ›

Here are eight distribution channels that can help consumers access products:
  • Direct sales. ...
  • Retailer. ...
  • Independent distributor. ...
  • Reseller. ...
  • Wholesaler. ...
  • Intensive distribution. ...
  • Exclusive distribution. ...
  • Selective distribution.
Mar 10, 2023

Is hotel reception a distribution channel? ›

Your front desk staff is a gold mine for extra revenue. With a little bit of training, they can be trained to convert enquiry calls into bookings. More importantly, being the ones who deal with the guest on a one-on-one level, they are well placed to get repeat visitation.

What are the advantages of distribution channel in hotels? ›

Improve Revenue and Business Performance

Additionally, distribution channel managers can make it easier to add new distribution partners and improve overall hotel visibility, potentially increasing demand, occupancy rates, and the amount that can be charged.

What are the most common distribution channels? ›

Retail is the most common distribution channel for consumer brands, using third-party outlets to bring products to market. Supermarkets, big-box stores, convenience stores and department stores all act as intermediaries and the point of contact for customers.

What is the function of hospitality distribution channel? ›

GDS communicates and distributes hotel reservation information and enables selling of hotel rooms / reservations throughout the world. It is basically a large network and a reservation tool that permits hotel inventory and rates to travel agents and allows them to make & manage bookings.

What is an example of channel management distribution? ›

What is an example of channel management? One example of channel management would be devising marketing strategies that are specific to the producer-agent-wholesaler-retailer-consumer channel. These strategies should differ from the producer-consumer channel.

How important is channel distribution in the hospitality and tourism industry? ›

What is a tourism distribution channel? As a B2C travel agent or tour operator, distribution channels represent the various ways to sell or market your product. You need to have a multi-channel presence to maximize your sales opportunities and brand presence, and to reduce your risk.

How do you manage distribution channels? ›

The channel management process contains five steps.
  1. Analyze the Consumer. We begin the process of channel management by answering two questions. ...
  2. Establish the Channel Objectives. ...
  3. Specify Distribution Tasks. ...
  4. Evaluate and Select Among Channel Alternatives. ...
  5. Evaluating Channel Member Performance.

What are the 6 C's of channel distribution? ›

The six C's of the channel strategy are cost, capital, control, coverage, character, and continuity.

What are the 4 main functions in distribution? ›

Physical distribution and logistics:In this phase, the distribution channel performs four functions; assembly, storing, sorting out the product, and transportation from the production to the final buyer.

What are the 4 steps of the distribution channel in order? ›

Producer-wholesaler-retailer-customer – This is regarded as the traditional stage of product distribution which flows from producer to wholesaler to distributor to retailer before finally reaching the consumer.

What are the 3 types of distribution channels? ›

There are three types of distribution channels: direct, indirect and hybrid.

What are the product strategies for hotels? ›

Six essential hotel sales strategies are: group bookings, direct bookings, destination marketing, cross promotional sales, guest rewards strategies, revenue management strategies. Other room selling techniques might include upselling, cross-selling, packages, promotions, re-marketing, and local partnerships.

What are the offline distribution channels for hotels? ›

Distribution channels can be online or offline. Offline channels include voice reservations, walk-ins, groups, wholesale/tour business, and the GDS (travel agent and managed corporate business).

What does channel mean in hotel? ›

A Channel can be a hotel's booking engine, a direct phone reservation or a specific stream of revenue such as a 3rd party website, an OTA, etc. Keeping track of channels is important in order to maximise marketing and revenue.

What is the most efficient distribution channel? ›

E-commerce is the most efficient distribution channel available for a business. It decreases dramatically the need to use multiple storage locations, multiple distributers and brokers to connect you to retailers to sell your product line.

What are the 5 advantages of distribution channel? ›

5 Benefits of Multichannel Distribution
  • Increase Customer Base and Reach More Target Market Segments. ...
  • Improve Customer Interactions and Increase Availability. ...
  • Increase Revenues. ...
  • Optimize the Supply Chain. ...
  • Multiple, Diversified Distribution Channels Reduce Risk.
Jun 26, 2020

Why are distribution channels important to a customer? ›

Distribution channels are important to businesses as they allow for the smooth delivery of goods or services to a customer. If a business does not source the best collection of businesses for this purpose, it can lead to unhappy customers and an inadequate provision of services.

What is the simplest distribution channel? ›

The simplest form of distribution channel is a direct one, where the supplier sells directly to the final customer.

What is a main distribution channel? ›

A distribution channel is a path that a product or service could take on its way to market. What's a direct distribution channel? A direct distribution channel is one where a company sells directly to the consumer, usually through their website or retail store.

What is an example of a distribution strategy? ›

For example, if your target customer base for your paper towel product is a middle-aged woman buying at a grocery store, you may choose to distribute to various brick-and-mortar storefronts, like grocery store chains and warehouse companies.

Why do hotels need a channel manager? ›

Without a channel manager, you're forced to split your inventory between channels and risk double-bookings or failing to reach full occupancy. Pooled inventory and automated updates of availability and rates in real time means guests can only ever book a room that is actually available.

How do you network in hospitality? ›

How to network with hospitality industry insiders
  1. Build strong brand awareness. ...
  2. Create a robust social media presence. ...
  3. Participate in a networking group. ...
  4. Attend insider events. ...
  5. Reach out to industry professionals directly. ...
  6. Host a party. ...
  7. Form community partnerships. ...
  8. Don't underestimate the power of informal chats.

What are channels of distribution and why do organizations use them? ›

Distribution channels are the path products take from their initial manufacturing stage to selling them to consumers. The main goal of these channels is to make goods available to final consumers in sales outlets as soon as possible.

What are the 5 steps of channel management process? ›

The channel management process contains five steps.
  • Analyze the Consumer. We begin the process of channel management by answering two questions. ...
  • Establish the Channel Objectives. ...
  • Specify Distribution Tasks. ...
  • Evaluate and Select Among Channel Alternatives. ...
  • Evaluating Channel Member Performance.

What is the goal with using channels of distribution? ›

The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and the user of it, whether the parties are located in the same community or in different countries thousands of miles apart.

Which are two examples of direct distribution channels? ›

Some of the companies that use direct distribution include Amway, Apple, Avon, Bowflex, Charles Schwab, L.L. Bean, Mary Kay, Peloton, and Walmart.

What is distribution channels in the tourism industry? ›

A tourism distribution channel is a network of intermediaries that facilitates the sales and deliv- ery of products and services specifically related to tourism from suppliers to consumers (Buhalis and Laws 2001; Kracht and Wang 2010; Longhi 2009).

What are the rules of distribution channels? ›

A distribution channel must be efficient and effective. It means that transportation and other logistical requirements need to be used at maximum capacity and at the lowest rates possible. Distribution channels can either be direct or indirect. The indirect channels can be divided up into different levels.

How can I improve my distributor performance? ›

Encourage regular sales meetings with your distributors. You can do this by organizing meetups or by setting up online webinars. Make the get togethers exciting. Promote your products, give incentives, and offer rewards as it is also a way to improve teamwork while marketing your items.

What are the three tips for using distribution channels? ›

Three criteria are important when choosing your distribution channel: the type of product, your potential customers and the target market.

What are the factors affecting distribution channel? ›

Top 6 Factors Affecting Channel Distribution
  • a. Perishability of Product: ADVERTISEMENTS: ...
  • b. Technical Aspects: ...
  • c. New v/s Existing Product: ...
  • d. Complexity and Risk Related to Use of Product: ...
  • e. Size of Product: ...
  • f. Divisibility of Product: ...
  • g. Unit Price of Product: ...
  • h. Legal Aspect:

What is channel strategy in marketing? ›

A channel strategy is the process of choosing certain marketing channels to reach your target audience. These channels can include online platforms, retail stores, TV advertisements, and more.

What are the five factors that can determine the type of channel? ›

The nature and type of product helps in determining a decision about channel of distribution.
  • (i) Price of Product:
  • (ii) Weight:
  • (iii) Standardisation:
  • (iv) Product Nature:
  • (v) After Sale Services:
  • (i) Market Size:
  • (ii) Nature of Customers:
  • (iii) Location of Buyers:

What are the 9 channel functions? ›

The nine channel functions are: physical possession, ownership, promotion, negotiation, financing, risk, ordering, payment, information sharing.

What are the 7 functions of marketing distribution? ›

The 7 functions of marketing are promotion, selling, product/service management, marketing information management, pricing, financing and distribution.

What are the 5 functions of distribution? ›

Generally there are five types of flows that take place through a distribution channel. They are – physical flow, title flow, payment flow, information flow, and promotion flow.

What are the five 5 key functions of physical distribution process? ›

Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials.

What are 4 distribution channels used by the airlines? ›

LCC distribution channels: Direct, NDC, GDSs and consolidators.

What are the three 3 distribution channels? ›

There are three types of distribution channels: direct, indirect and hybrid.

What are the different types of distribution channel? ›

There are two types of distribution channels – direct (producer to consumer) and indirect, where intermediaries (wholesalers, retailers, distributors) are involved.

What are the two 2 types of distribution channel? ›

There are two types of distribution channels: direct and indirect. As the names would imply, direct distribution is a direct sale between the manufacturer and the consumer, and indirect distribution is when a manufacturer utilizes a wholesaler or retailer to sell their products.

What is distribution channel strategy? ›

A distribution channel strategy evaluates ways to improve the positioning of products to boost demand around them. Your main goal is to find the right customers and locations of demand, in order to speed up the process of connection between products and customers and make it profitable.

What is the most common type of distribution? ›

The Normal or Gaussian distribution is arguably the most famous distribution, as it occurs in many natural situations. A variable with a normal distribution has an average, which is also the most common value.

What is 3 step distribution? ›

DISTRIBUTION: 3-Step Distribution This is a term for a distribution process. In 3-Step Distribution, (1) the Manufacturer sells to the WD, (2) the WD sells to the Jobber, (3) the Jobber then sells to the consumer. 2-Step Distribution This is a term for a distribution process.


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