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Distribution Channels of the Hotel Industry

Distribution Channels of the Hotel Industry

Abstract

Distribution Channels of the Hotel Industry SAGE Publications, Inc.1974DOI: 10.1177/001088047401400405 William H.Kaven Economics and Marketing Cornell University THE HOTEL INDUSTRY must be widely defined to include the broad spectrum of lodging establishments other than hotels such as motels, motor inns, tourist courts, and in some instances, rental condominiums. If we are to gain perspective necessary to define and describe the hotel industry's channels of distribution we must adopt an even broader view and see hotels as they function within the whole travel industry. No longer are the various travel venders neatly separated, for example, intro, hotel companies, transportation companies, travel agents, tour operators, and caterers. Instead there has been movement toward the development of what Kotler calls vertical marketing systems (VMS) in which hotel and transportation companies, especially airlines, work within the same corporate systems and perhaps even engage in catering operations and travel tour operations. This article defines the marketing channels found in the hotel industry and relates them to that larger framework of the travel industry. The Customer's Need for Information The endless combinations and permutations of alternative routes, transportation modes, times, and lodging accommodations make many travel decisions difficult even for the initiated. When the
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