Chaotic changes in distribution channels: implications for hospitality companies

Abstract

Distribution channels of hospitality products are going through chaotic changes and slowly making the traditional tourism and travel marketing obsolete. These changes are already having significant impact on hospitality companies’ operational strategies. As a result, required skills and talents of hospitality employees are evolving from reservation taking and confirming to inventory controlling and forecasting to selling to managing revenue. In addition, the need for synchronization of multiple channels for most efficient operation is further forcing hospitality operations to develop strategies that will minimize the negative impact of those changes on their operations and profitability. This study examines the changes hospitality distribution channels are going through and discusses the strategic implications of those changes for hospitality companies.