Distribution Channels and Management in the Swiss Hotel Sector

Investigation of how the hospitality sector in Switzerland has embraced the new world of (online) distribution finds that direct booking channels remain the dominant sales tools in Switzerland, although their proportion in the distribution mix has been decreasing steadily in the last years.

Abstract

This research investigates how the hospitality sector in Switzerland has embraced the new world of (online) distribution. It analyses the role of existing distribution channels, and gives insights into channel management methods used. Data is gathered through an online survey among Swiss hotels resulting in 196 usable questionnaires. Findings show that direct booking channels remain the dominant sales tools in Switzerland, although their proportion in the distribution mix has been decreasing steadily in the last years. The Internet Distribution System channel reaches 16.4% and thus is the channel with the highest growth rate in 2011. A cluster analysis on multi-channel distribution strategies results in four groups: multi-channel distributors, electronic distributors, real time distributors, and traditional distributors. Further, it is shown that more than half of the hotels manage rates and availabilities manually and only one out of four hotels has implemented a channel manager able to manage different channels.