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At Delta Squared we understand that the constant challenge for hoteliers is to ensure that product (hotel rooms), price (hotel rates) and
engaging content (product description) are available in the right channels, at the right time and at the right price.
A key question is 'how best to do this in an increasingly competitive and complex business environment, that is driven in part by customers
purchasing in many different ways?'
For hotels, this may mean selling to a guest via the call center, the sales force, direct to hotel, travel agent, wholesaler, third party
intermediary, or via a Global Distribution System (GDS). The method can include a number of different devices, internet, email, telephone,
mobile or wireless device or even the mail!
Also, whilst the cost to distribute travel products has continued to rise, the supplier has not seen any comparable increase in value from the
distribution channel. In fact, costs for all suppliers have increased without a comparable increase in profits
The key distribution issue facing hotels is 'which of the many strategies should be employed to manage channels more effectively and more
profitably?'
Delta Squared can help answer these questions and improve performance by addressing the following key stages in distribution:
Strategy (Distribution)
- What are the strategic goals of the organisation and what makes it unique?
- What is the nature of the business? – International / national, economy sector / luxury sector.
- What is the value proposition? o Low total cost, operational excellence o Superior Products, cutting edge innovation
- What are the main strategies in moving this organisation to being more successful in hotel distribution?
- What are the key short-term goals to achieve these strategies?
- What are the main constraints in executing these strategies?
- Are these strategies the right ones?
- What is the competitive landscape – how does the organisation perform?
Systems
- What systems and technology are in place to enable efficient distribution?
- How are the systems managed and are they well aligned?
- What tools and processes are in place and are they fit for purpose?
- What are the key systems that support the business/organisation?
- What are the 5 most important distribution system problems that if solved or improved would significantly improve profitability or
organisational effectiveness? Why?
Structure
- How is the distribution department organised, and where does it fit into the overall organisation?
- How does distribution sit with revenue, pricing, sales or marketing organisations?
- Do the goals and objectives of these organisations converge or are they working for potentially different outcomes?
- What key things are done in the organisation to help integrate various functions and departments that are interdependent?
- How does the structure help/hinder this organisation in accomplishing its strategy?
Staff
- What are the strengths and weaknesses of the organisation's key people?
- Who of these are most important to the success of the business? Why?
- What are you most concerned about regarding the quality of the key staff? What are the strengths and weaknesses of the organisation's
labour force?
- What are you most concerned about regarding the quality of the organisation's work force?
Skills
- What key knowledge and skills are needed to succeed in this business/organisation?
- How is that expected to change over time?
- How do the organisation's current strengths and weaknesses compare against the needed knowledge and skills?
- What challenges does the organisation face in strengthening or maintaining this match between knowledge and skills needed now and in the
future?
'In a challenging environment finding new ways to make distribution work more effectively is crucial.Doing the same old things and hoping for
the same results is, at worst, a definition of distribution downturn! At best it is a flawed strategy.'
However, if you recognise the opportunities:
- to drive revenue by extending market reach,
- to optimise rate through effective management of demand,
- to improve profitability by applying an appropriate multi channel strategy,then Delta Squared Performance Improvement should be your
partner.
“In life and business we are faced with a series of great opportunities brilliantly disguised as problems” Lee Iacocca
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