Substitution Effects Across Hotel Distribution Channels

Roland Schegg () and Miriam Scaglione ()
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Roland Schegg: University of Applied Sciences and Arts Western Switzerland
Miriam Scaglione: University of Applied Sciences and Arts Western Switzerland

A chapter in Information and Communication Technologies in Tourism 2014, 2013, pp 801-812 from Springer

Abstract: 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 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-03973-2_58

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DOI: 10.1007/978-3-319-03973-2_58

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