The role of distribution is one historically intertwined with the strategic function of revenue management. While distribution strategy has a very micro and specific business focus, it has become a hot topic of interest for hotel executives. As another facet of revenue management, we, as an industry, have spent time over the recent years analyzing and dissecting the opportunities an intelligent distribution strategy can bring hotels. Most notably, there has been a significant evolution in the role it plays in driving hotel profitability – largely due to emerging industry data sources, channels and various types of technology. Add in the complexity of prices, restrictions, add-ons, channel usage, technology and distribution costs, and many hotel organizations have easily considered this function large enough to split off on its own, increasing job roles that develop, execute and measure their comprehensive and intelligent distribution strategies. The complexity of distribution and its impact on today’s organizational structure makes it critical for executives to understand how the quality of this role increases their overall hotel profitability. Not accounting for real distribution costs (which include details like basics of percentages, tracking direct costs and monitoring revenue results) can have an extremely unprofitable impact on overall revenue management strategies. Not properly managing or accounting for distribution costs directly affects the net revenue results hotel executives can expect from their property’s distribution channel strategy. Get the full story at IDeaS