Distribution channel

A distribution channel in travel refers to the different ways that travel products such as hotel rooms, airline tickets, or vacation packages are made available to customers. 

Distribution channels can be categorized into two big groups: direct and indirect. Direct channels are company’s own website(s) or live sales. Indirect channels include 

• online travel agencies (OTAs) like Expedia or Booking.com, 
• traditional travel agencies, or 
• partnerships with other businesses like tour operators or TMCs. 

Each channel serves as a way for travelers to access and purchase travel-related products, and each of them has its pros and cons. So every travel company develops its own distribution strategy – an optimal mix of channels that will ensure maximum profitability.

For businesses, there are several ways to manage their distribution. For example, in the hospitality industry, if a small property has few distribution channels, it often manages them manually in spreadsheets and via OTA extranets. Hotels with more complex distribution structures use channel managers – software that automatically updates inventory availability and prices across multiple channels.