The impact of hotel property size in determining the importance of electronic distribution channels

Abstract

PurposeThe purpose of this paper is to examine the use of electronic distribution systems (EDS) in Korean hotels and investigate the differences between large and small and medium (S&M) hotels.Design/methodology/approachThis is a qualitative and explorative study. An in‐depth interview was conducted of seven large hotels and nine S&M hotels.FindingsRegardless of size, the surveyed hotels received, on average, more reservations through offline systems than online. It was found that large hotels showed less variation in the use of EDS than S&M hotels. While there was no distinct difference in the overall use of EDS, in terms of average, the highest percentage of hotel EDS use was demonstrated by S&M hotels. Regarding specific components and distribution flows, large hotels overall employed a variety of distribution channels, often implemented in multi‐faceted systems. S&M hotels, in most cases, adopted simpler distribution flows, i.e. hotel web sites and online travel agencies. This difference seems to be the result of the affiliation of primarily large hotels with huge hotel corporations.Research limitations/implicationsAn emphasis has been placed on the current use of an EDS within S&M hotels, given their greater competitive challenge with regards to their larger counterparts.Practical implicationsMeaningful implications are made that building an extensive and effective information system appropriate to the size and type of the hotel's operations is especially needed by S&M hotels.Originality/valueThe paper addresses EDS issues specifically for S&M hotels.