An analysis of distribution channel parity and yield management practices in United States hotels
Date
2007
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Publisher
University of Delaware
Abstract
The Internet has altered the business environment completely. It has dramatically affected the distribution of hotel rooms creating both opportunities and challenges for the lodging industry. Revenue Management is used by the hoteliers as a demand forecasting tool to manage their room inventory effectively for greater financial gain. This study investigates whether hotels in the U.S. utilize the basics of revenue management and offer consistent rates among all distribution channels. The results of this study have shown that the room rates on hotel's direct distribution channels are not significantly different than room rates that are on indirect distribution channels. Only 31% of the hotels in the U.S. set their prices according to market trends. Only 16% of the hotels in this study avoided using third parties as the booking date approached. Most of the hotels' rates were consistent across indirect distribution channels. ☐ Keywords: Online Distribution Channel, Revenue Management, Internet