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Hospitality distribution

Published on February 27, 2025   34 min

A selection of talks on Marketing & Sales

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0:00
We'll talk about hospitality distribution. Peter O'Connor from the University of South Australia and Dimitrios Buhalis from Bournemouth University have been working on distribution for more than 20 years. Hospitality distribution is one of the most critical elements of profitability because it actually determines how much money a hotel can do and how much they can recover their cost and what is the return on their investment.
0:27
Hospitality products are perishable. What is good today cannot remain for tomorrow. If it is not sold today, a hotel bed or a meal or a seat or a cocktail on the bar would not be good for tomorrow. That is very critical in terms of hospital profitability.
0:48
Hospitality operations and hotels in particular have got very fixed cost because they require a very significant investment in the beginning to build the facility and to employ staff in order to be able to operate. Some of the costs are fixed in terms of the rent, the loan repayment and the rates and some of the costs are variable in terms of how many people you need to serve a certain number of rooms and a certain number of customers. By matching the fixed cost and the variable cost, we're trying to maximize the profitability of the operation and we're trying to find the optimum way that hospitality operation can work in order to satisfy the customers but at the same time do it profitably and increasing the competitiveness at the same time.

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