Effects of Online Distribution for Marketing of Budget Accommodation Segment in Kolkata, India

Dr. Soumendra Nath Biswas and Mr. Sudipta Kumar Pal
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Dr. Soumendra Nath Biswas: Associate Professor, Assam University (A Central University), Silchar, Assam, India
Mr. Sudipta Kumar Pal: Research Scholar, Utkal University of Culture, Bhubaneswar, Odisha, India

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 8, 1250-1259

Abstract: The budget accommodation segment has witnessed a significant shift with the rise of online distribution channels. While these platforms offer vast opportunities, they also bring forth a set of substantial challenges. This paper discusses the primary challenges faced by budget accommodation providers in the online distribution sphere and proposes solutions to address them. The key challenges include market saturation and competition, revenue management complexity, and the critical role of online reputation and reviews. The intense competition among numerous online travel agencies and accommodation platforms has made it challenging for budget accommodations to differentiate themselves and maintain profitability. Revenue management complexities arise from dynamic pricing and rate parity issues, which can lead to revenue leakage. Additionally, online reviews and reputation management are critical, as negative feedback can severely impact bookings and revenue. To address these challenges, budget accommodation providers can focus on differentiation through personalized experiences and value-added services. They can also utilize revenue management tools and data analytics to optimize pricing strategies and ensure rate parity. Active engagement with guests and prompt response to reviews, along with maintaining consistent service quality, can help manage online reputation effectively. In summary, while online distribution presents challenges for budget accommodations, innovative strategies and technology adoption can empower providers to thrive in a competitive landscape, ensuring sustainable growth and guest satisfaction.

Date: 2023
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