Deck 16: Channels of Distribution

Question 1

Which is not a best practice for hospitality website design?

A) The online reservation feature should be prominent
B) Security of the transaction is conveyed
C) The property is well- photographed
D) There is some sort of guarantee of the best price on the internet

Answer 1

C

Question 2

Most hospitality organizations utilize one channel of distribution.

Answer 2

False

Question 3

Franchising means that a franchisee has access to a brand's CRS, marketing departments, and revenue stream.

Answer 3

False

Question 4

To evaluate a channel of distribution, a hospitality manager should:

A) Evaluate the pay- per- click numbers
B) Compare it to their CRS
C) Perform a break even analysis
D) Rely on the channel to do the evaluation

Question 5

Who takes responsibility for distribution channel management at the hotel chainwide level?

A) Each individual property's marketing manager
B) The general manager of the chain
C) Each individual property
D) The corporate marketing office

Question 6

The following are methods of getting the product to the consumer, except:

A) Global distribution systems
B) Corporate travel departments
C) Convention meeting planner organizations
D) Franchising

Question 7

The goal of distribution is to get the products to where the customer is now or will be in the future.

Question 8

Leading Hotels of the World can be an example of a representation firm, which is:

A) An organization that does marketing and sales for a group of independent hotels
B) A corporate travel agency
C) A central reservations system for a brand
D) A franchisor for a group of small independent hotels

Question 9

Tracking customer clicks and typical navigation on a hotel's website can be used to:

A) Monitor pay- per- click advertisements
B) Sell the hotel's product more efficiently
C) Segment the online customer market
D) Examine the efficiency of search engine placement

Question 10

What are the two audiences that hospitality websites should be designed for?

A) The potential client and search engines
B) The potential client and the online distribution system
C) Search engines and corporate travel agents
D) The potential client and corporate travel agents

Question 11

The usual franchise fee for a hospitality company is around 4- 5% of sales, plus marketing and reservation fees.

Question 12

Hotwire.com and Priceline.com are beneficial to hoteliers because:

A) They take a percentage of the royalties from the sale
B) They interface directly with the CRS
C) They can mark up their prices higher
D) They can protect their brands

Question 13

A major advantage of branding is that the brand owns both the physical property asset as well as the brand on top of the asset.

Question 14

In addition to being a representation firm, Leading Hotels of the World is a soft brand, which is:

A) A brand that does its own central reservations system
B) A brand that is a rep firm and its own independent brand as well
C) A brand that hasn't quite yet met brand standards
D) A brand that is small in its sales volume and franchisees

Question 15

A major advantage of franchising, with regard to distribution systems is that:

A) Franchising increases revenue for the company and the brand
B) Franchising increases the geographic presence of the brand
C) Franchising dilutes the financial risk associated with buying assets
D) Both A and B

Question 16

One of the major challenges with the online distribution market in China is:

A) The language barrier is too great
B) Most customers have domestic bank debit cards
C) The Chinese tend to question the reliability of online information
D) Both B and C

Question 17

A private label service is an example of:

A) A soft brand
B) An in- house CRS
C) An in- house travel agency
D) An outsourced CRS

Question 18

Which statement is not true about the merchant model of online channels work?

A) The CRS systems are still more popular with consumers than the online channels
B) Is a different system than the agency model
C) Hotels sell online distribution channels rooms at a net rate; they mark them up a certain percentage
D) Hotel websites became direct competitors to the online distribution channels

Question 19

Onward distribution of hotel rooms refers to:

A) The passing on of a room rate from one distributor to other distributors
B) The hotel's website selling its inventory directly to customers
C) A meta search engine that searches multiple sites for the hotel's best rate
D) The hotel selling rooms to an online distribution channel at a negotiated rate

Question 20

What is the main reason for the distribution system being more complex for the hospitality industry than other industries in general?

A) There is such a wide variety of products offered
B) The online third party retailers such as Expedia are now in the mix
C) Most hospitality organizations are the retailers of the product as well as the manufacturers
D) They sell intangible goods

Question 21

Keywords help with a hotel website's search engine placement.

Question 22

The lower the star rating of the hotel the more involved and descriptive the hotel's website should be.

Question 23

An example of a new challenge with online distribution systems is price transparency.

Question 24

The share online distribution marketing in the hospitality marketing budget is staying about the same from year to year.

Question 25

An intermediary connects a buyer and a seller to make a sale.