3 reasons hotel distribution is a critical part of your growth strategy

Katja Bohnet

Director of Hotel Distribution, Amadeus

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As the hospitality industry evolves to accommodate new trends in consumer behavior and travel agent preferences, the distribution channel remains a key component of any hotelier’s revenue and marketing strategy. In this blog post we’ll review three areas of consideration to stay ahead in today’s market.

1. Changing traveler expectations increases the value of a distribution strategy 

Hotel distribution is more important than ever as travelers review multiple booking options and channels available to them – whether it’s direct, indirect, metasearch, OTA (Online Travel Agency), or by phone.  

According to the Online Travel 2020: Evolve, Expand or Expire report the average traveler today searches nearly 50 times online and makes 38 site visits before booking. Travel sellers are also expanding their sourcing options: traditional B2C players are targeting B2B (Booking.com, Expedia) or alternative accommodation players with long- and short-term apartment rentals.

In the 2019 Global Travel Agent GDS Report distribution platform usage is increasing at a faster rate than other channels and 2019 will prove to be a record year for hotel bookings via a global distribution system. Our research shows that travel agents book 22 times more hotels than consumers, and they do it on a distribution platform.

For hotels, and other content providers such as booking.comincluding their content on a distribution platform can effectively leverage this channel to distribute available rates and inventory, offering not only a wider and greater choice of content but also different commercial models for travel sellers to choose from.

With distribution systems, like the Amadeus Travel Platform hoteliers gain value from our investment in standardization through machine learning to ensure travel agents are presented with the same property even if it comes from different sources and has different commercial models. This content uniformity means that travel sellers can access a B2B metasearch type experience regardless of distribution channel, be it through our own Selling Platform, through API connectivity or self-booking tools, like Amadeus cytric Travel & Expense.


2. Distribution drives demand generation and revenue growth strategies

Distribution is about finding the right strategy for hotels, its channels, payment, invoicing, technology and regulation in different countries.

Distribution has also spread into other areas of demand generation for hotels as they focus further on direct sales: loyalty programs, metasearch and social media campaigns, or personalization of offers through attributes.

We observe changing behaviors of a growing generation of travelers emerging from the Millennial workforce that are used to ‘living on-demand’. Our Drivers of Changewhitepaper looks into how hoteliers must incorporate the human touch of hospitality with technological innovation – be it devices, platforms or applications – needed to meet modern consumer expectations. 

Amadeus strives to provide a seamless travel experience to guests through an end-to-end technology platform that enables our hotel customers to service the traveler throughout their journey.


3. Enabling today’s traveler goals: bleisure trips are surging 

Today’s business travelers want more from their trips and increasingly extend their business trips to add some leisure activities. In the whitepaper“Travelers feel frustrated and underserved in Destination X”, this topic is explored: “Combining business with leisure allows to better take advantage of trips but also adds extra time and careful coordination to stay on top of while being on the road”. 

With rapid changes in the way information is collected and analyzed, hotels can improve the way the hospitality sector caters to its clients and personalize its offering by adding a leisure component on top of their business trip proposition.


Taking action to leverage distribution in your strategy

At Amadeus, we know choice is important, which is why we’ve expanded to a comprehensive travel platform. By doing this, we can offer hotel buyers and travel agents a variety of options on a massive scale– from different types of accommodations, to personalized travel packages, transportation, activities, and more. Today, travel agents have the ability to create custom journeys for their guests from millions of booking options.

By leveraging the data and tools needed to deliver a more personal and meaningful experience to their guests who increasingly expect a more connected, memorable and immersive travel experience, hoteliers can successfully leverage the distribution channel in their strategy.

To find out more about the Amadeus hospitality offer, please check our solutions page and latest news




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