Question 1

Which is not a best practice for hospitality website design?

Accepted Answer

C

Question 2

Most hospitality organizations utilize one channel of distribution.

Accepted Answer

Most hospitality organizations use multiple channels of distribution to reach a wider audience and maximize their market presence.

Question 3

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

Accepted Answer

Franchising typically grants the franchisee the right to use the brand's name, products, and business model, but not direct access to the brand's central reservation system (CRS), marketing departments, or revenue stream.

Question 4

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

Accepted Answer

Performing a break-even analysis helps the manager understand the costs and benefits associated with the channel, allowing for a more informed decision on its effectiveness.

Question 5

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

Accepted Answer

The corporate marketing office typically takes responsibility for distribution channel management at the hotel chainwide level to ensure consistency and efficiency across all properties.

Question 6

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

Accepted Answer

Franchising is a method of expanding a business and distributing goods and services through a licensing relationship, not a direct method of getting a product to the consumer.

Question 7

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

Accepted Answer

Distribution aims to ensure that products are available at locations where customers currently are or are expected to be, facilitating access and purchase.

Question 8

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

Accepted Answer

Leading Hotels of the World is a representation firm that provides marketing and sales support for a collection of independent luxury hotels, helping them to compete with larger hotel chains.

Question 9

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

Accepted Answer

Tracking customer clicks and navigation helps understand customer behavior and preferences, allowing the hotel to optimize its website and marketing strategies to sell its products more efficiently.

Question 10

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

Accepted Answer

Hospitality websites should be designed for potential clients to attract and convert them into customers, and for search engines to ensure the site is easily discoverable and ranks well in search results.

Question 11

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

Accepted Answer

Franchise fees in the hospitality industry typically include a percentage of sales, often around 4-5%, along with additional fees for marketing and reservation services.

Question 12

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

Accepted Answer

The answer of Hotwire.com and Priceline.com are beneficial to hoteliers...

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.

Accepted Answer

Branding primarily involves creating a unique identity and image for a product or company, but it does not imply ownership of physical property assets.

Question 14

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

Accepted Answer

A soft brand is a collection of independent hotels that maintain their unique identity while benefiting from the marketing and distribution channels of a larger brand, like Leading Hotels of the World.

Question 15

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

Accepted Answer

Franchising allows a company to expand its geographic presence without the company itself having to invest in new locations, thus increasing revenue and brand presence.

Question 16

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

Accepted Answer

Both B and C are correct. Most customers in China have domestic bank debit cards, which cannot be used for international online purchases. Additionally, the Chinese tend to question the reliability of online information, making it difficult for foreign businesses to establish trust with potential customers.

Question 17

A private label service is an example of:

Accepted Answer

A private label service is an example of an outsourced CRS (Central Reservation System) where a third-party company manages the reservation system for a hotel or chain under the hotel's brand name.

Question 18

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

Accepted Answer

The statement that CRS systems are still more popular with consumers than online channels is not true. Online channels have become more popular and widely used by consumers compared to traditional CRS systems.

Question 19

Onward distribution of hotel rooms refers to:

Accepted Answer

Onward distribution of hotel rooms involves passing on a room rate from one distributor to other distributors, allowing multiple parties to sell the hotel's inventory.

Question 20

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

Accepted Answer

In the hospitality industry, organizations often act as both the manufacturer (creating the service experience) and the retailer (selling it directly to consumers), which adds complexity to the distribution system.

Quiz 16: Channels of Distribution