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Substitution Effects Across Hotel Distribution Channels

Conference paper

Abstract

The evolution of distribution channels in the hospitality sector has followed different paths over time depending on the technology used. This research analyses the evolution of market shares of different clusters or generations of distribution channels using multi-generation diffusion methods. The data for the study are a series of annual member surveys by Hotelleriesuisse since 2002 which monitored the evolution of market shares of 15 individual distribution channels. We grouped the distribution channels into three generations starting with the pre-World-Wide-Web era; the middle generation comprises Internet-based direct booking channels and the latest generation includes online intermediaries such as Online Travel Agencies and social media. The results of our analysis show substitution effects across different clusters of distribution channels and shed light on the dynamics of competing sales funnels. From the practitioner’s point of view, the study gives insight into the future evolution of the distribution mix. This evolution is crucial for hotel marketing strategies as the Internet is the most powerful marketing tool in the hospitality industry today.

Keywords

Hotel Distribution OTA Switzerland Fisher-pry model Substitution effects 

Notes

Acknowledgments

The authors want to thank Professor Leonard Adkins for the final English editing of this text and the anonymous reviewers for their useful remarks on the first draft of it.

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Copyright information

© Springer International Publishing Switzerland 2013

Authors and Affiliations

  1. 1.Institute of TourismUniversity of Applied Sciences and Arts Western SwitzerlandValaisSwitzerland

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