PowerPoint Presentation 03/01/2014 1 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved1 Technology Strategies for the Hospitality Industry, 2nd[.]
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Upper Saddle River, New Jersey 07458 • All rights reserved 1
Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
Global Distribution Systems and
Channels
Chapter 8
Copyright ©2012, 2005 by Pearson Education, Inc
Technology Strategies for the Hospitality Industry, 2nd ed.
INTRODUCTION
• The area of global distribution is one of the most
complex aspects of the hospitality business and an
area that has been greatly impacted by technology
change with the rise of new channels or sales
outlets
– The term global distribution can be defined in this case
as attaining the broadest possible reach to the largest
available audience meeting a company’s target market
segments at the most affordable cost and with the
highest potential for winning conversion (i.e., generating
bookings).
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Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
INTRODUCTION
FIGURE 8-1 Common Channels Used When Booking Lodging
Accommodations
Understanding Pathways to
Customers
Intermediary
Direct
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Copyright ©2012, 2005 by Pearson Education, Inc
Technology Strategies for the Hospitality Industry, 2nd ed.
INTRODUCTION
• The thrusts of distribution are market reach
and penetration, branding, merchandising,
and revenue generation
– Supporting the global distribution function is a
global distribution system (GDS), that, in
effect, has become the circulatory system of the
lodging organization
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Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
INTRODUCTION
FIGURE 8-2 The GDS Ecosystem
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Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
IMPORTANCE OF GDS
• The roles played by a
GDS have evolved
over time—from one of
transaction-based
emphasis to one of
strategic value—but at
any one point in time, a
GDS fulfills five
important roles.
FIGURE 8-3 The Many Roles of a GDS
Copyright ©2012, 2005 by Pearson Education, Inc
Technology Strategies for the Hospitality Industry, 2nd ed.
IMPORTANCE OF GDS
FIGURE 8-4 GDS-Related Core Competencies Essential for Competitive Advantage
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Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
DEVELOPING A DISTRIBUTION CHANNEL
STRATEGY
• Finding and Competing for Electronic
Shelf Space
• Cost Implications
• Understanding Share of Distribution
• Maintaining Inventory Control: A
Daunting Challenge
• Inadequate GDS Technology
Infrastructure
• Inventory and Rate Management Issues
DEVELOPING A DISTRIBUTION CHANNEL
STRATEGY
FIGURE 8-5 Distribution Channel Evaluation
Criteria
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Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
DEVELOPING A DISTRIBUTION CHANNEL
STRATEGY
• Rise in Number of Electronic
Intermediaries
• Shift in Balance of Power from Supplier
to Customer
• New Models of Distribution and Pricing
• Accelerated Rates of Change
• Relinquished Control of the Customer
Relationship
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Agency Model
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15
Merchant Model
Opaque Model
• Opaque Product
• Opaque Price
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17
Auctions
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Search and Meta Search
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Technology Strategies for the Hospitality Industry, 2nd ed.
Peter D Nyheim and Daniel J Connolly
TRENDS IN HOTEL AND RESORT GDS
• Disintermediation and Reintermediation
• Digital Divide
• Transparency: A Hope for the Future
• Bypassing Airline GDSs
• Leveraging Technology to Reduce
Overhead
• Mobile Apps (Applications)
• Shopping Bots
M-Commerce
Any time, anywhere access Location-based services SMS “push” capabilities Value-add services