Marketing Hospitality, 3rd ed., Hsu/Powers Chapter 9 Place in Hospitality Marketing: Distribution

Distribution n The strategy of place –Presence –Representation n Three levels of distribution –Intensive distribution –Selective distribution –Exclusive distribution

Distribution Channel Members in Manufactured Goods n Merchant firms n Retailers n Agents

Need for Distribution in Lodging n Physical presence n Representation –Reservation network

Central Reservation Network Travel Agency Carlson Wagonlit Thomas Cook $6 to $8 Global Distribution System SABRE Galileo $3 to $5 Switch Company THISCO Wizcom $2 to $3 Central Reservation Service Hilton Hotels Sheraton Hotel Property Alternative Internet Reservation Path G U E S T S Booking a hotel room through the Internet Booking a hotel room via traditional reservation structure

Lodging Channels of Distribution n Lodging chains –Management contract n Franchise n Travel agents n Other channel members

Lodging Franchise n Membership system n Franchise and membership services –National brand and marketing program –Reservation system –Quality assurance –Buying coops –Training programs n Impact

Distribution Via Travel Agents n Travel wholesalers n Retail travel agencies n Services to travel agents –Toll-free number –Travel agent club –Commission payment plan –Incentives –Fam trip –Information packages

Other Channel Members n Hotel sales representative companies n Incentive houses

Foodservice Distribution Systems n Franchise system –Growth vs. control Master franchisee –Encroachment n Intensive distribution—intercept marketing –Points of distribution (POD) –Hosts –Venues

Foodservice Distribution Systems n Franchise system n Intensive distribution—intercept marketing n Intermediaries –Third-party delivery services