Managing reservations through online distribution channels

Abstract

PurposeThis study aims to evaluate current room inventory distribution strategies of mid‐segment hotels in India, identifying factors that influence the managerial decisions in selecting electronic distribution channel for their property.Design/methodology/approachA qualitative research methodology using structured interviews with senior level managers of five mid‐segment hotels in National Capital Region of India (NCR). Data collected were analysed to generalise the findings of this research.FindingsMid‐segment hotels in NCR rely on traditional distribution channels. Managers do not have sufficient knowledge about electronic distribution. There is a large gap between average room rate of mid‐segment hotels and higher‐level hotels. Demand during the period of study was higher and the trend for higher demand is likely to continue. Repeat business in mid‐segment hotels is nearly 70 percent.Practical implicationsThe present high demand environment demands that the mid‐segment hotels look beyond their existing customer base and distribute inventory through multi‐channels including electronic distribution to achieve higher RevPAR, improved visibility and sustainable customer base for a longer period.Originality/valueThis research attempts to bring out factors that influence managerial decisions while selecting a distribution channel in the context of the Indian hospitality industry.