Channel Performance in Multichannel Tourism Distribution Systems

Abstract

This article addresses the issue of channel performance in multichannel tourism distribution systems involving a mix of direct and indirect channels. It focuses on one major component of channel performance, net revenue generated. The article outlines a comprehensive and systematic methodology for measuring net revenues across multiple distribution channels, discusses the challenges involved and suggests how these might be overcome. The empirical results for a range of attractions and accommodation businesses in New Zealand are then analyzed. These show substantial variations may occur in net revenue across the different channels. Differences are found in the structure of channel costs with staff costs being particularly important. The managerial implications of the results obtained are discussed.