Hotel Tech Ecosystem: Adaptations to Online Distribution

Abstract

Digitalization is no longer a luxury – it is an opportunity. Over 60% of leisure and business travel arrangements are made online. Online Distribution Channels, including over 200 Online Travel Agencies (OTAs), and Channel Managers integrated with Property Management Systems (PMSs) are available for distribution of hotel services via the Internet. Hoteliers are challenged to work out effective strategy and should apply a multi-channel marketing approach to stay competitive. The assessment of distribution strategy tools in their typology, key characteristics, strengths, weaknesses, opportunities and risks is required to help the hotel management benefit from digitalization in increased efficiency, reduced operational costs, data analytics and lack of human error. The current study investigates adaptations of the hotel tech ecosystem to rapidly changing technologies in the digital travel market. The study utilizes a SWOT Analysis – a simple, yet powerful tool to streamline business strategy, and can be used for academic purposes in hospitality educational programs.