Aspects of distribution system in the hostness industry

1. ASPECTS OF DISTRIBUTION SYSTEM IN THE HOSTNESS INDUSTRY

Scientific article to order

2.

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The article analyzes research and publications on distribution issues, the features of the concept of
"distribution system" are revealed; given characteristic innovations in distribution, used by modern
hotels enterprises; revealed the relevance of electronic distribution as the most important kind of
marketing innovations on the example of hotel enterprises.
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The urgency of the chosen topic lies in the fact that, in conditions of market relations, an important factor in the
successful business of hospitality enterprises is to increase the competitiveness of the institution and the elements of
bringing the services to consumers. The processes of globalization and the differentiation of consumer demand
contribute to the growth of distribution in the aspect of improving the quality of services. The active development of
IT-technologies, integration into different industries, effective use in the management of numerous profiles and
business activities has not left the party and the sphere of hospitality. High competition among market participants
activates them to find the most effective methods. The need for innovations in the distribution system of hospitality
enterprises today is due to changes in the market, which is facilitated by the emergence of new opportunities to meet
the needs of consumers of services hotel industry.
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The purpose of the work is to specify and improve ways to improve the quality of hotel services due to the
efficiency of the distribution system.
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The object of research - the distribution system in the hospitality industry.
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The subject of the study is theoretical and methodological aspects of the analysis of the distribution system in
the hotel industry.

3.

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The system of distribution in hospitality enterprises includes in itself planning, organization and control of the
services provided for the purpose satisfying the needs of consumers and benefiting the enterprises themselves.
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Organization of the distribution system is a key element of the hotel business, and so the commercial services
of hotel сompanies are trying to make their sales the strategy is more active and varied.
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The main elements of the distribution structure are: distribution processes; distribution channels; systems of
service; intermediaries.
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The tasks that are implemented through the distribution companies include:
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- adaptive formation and adaptation of services to the needs of consumers;
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- collection and transfer of information about the marketing environment;
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- transfer of ownership of products and services;
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- negotiations;
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- financing operations;
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- reduction of risks.
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In modern conditions, the importance of the distribution system increases, and the role is growing various forms
of mediation, such as tour operators, travel agents, reservation systems, hotel service dealers [10 p.72-85].

4.

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Recognizing the importance of existing scientific developments it lack of study of certain aspects of the Internet
reservation systems in Ukraine should be noted. Outlined problem covered in scientific professional literature only in
the context of development and opportunities of application of global reservation systems (GDS). Uncertain is the
question of the use of alternative reservation systems (ADS) in the marketing activities of enterprises of hospitality
industry.
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According to Baburin V.A., internet technologies in the tourism industry form understanding of practical
workers the feasibility of using alternative reservation systems in sales of hotel services. However, the mechanism of
their implementation of marketing activities is not worked enough, causing an imbalance in the application of Internet
marketing instruments [3].
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Extensive analysis of hotel industry enterprises located in 22 regions of Ukraine (excluding the Crimea,
Donetsk and Lugansk regions) give evidences of detailed activities of enterprises of hotel industry to attract
alternative systems of distribution to sales of hotel services. For some enterprises of hotel industry such cooperation is
the foundation of activity in the Internet.
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The main objectives of innovation in the distribution system are:
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- more complete satisfaction of the needs of consumers; retention or increase
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market share;
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- penetration into new markets to increase sales volumes;
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- development of new sales channels;
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- increasing the ability to take into account customer requests;
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- development and strengthening of relations with consumers.

5.

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According to Kuchera L.S. innovation in the distribution system, in addition to enhancing the competitiveness,
image and reliability of guest companies in a particular segment of the market, increase the profitability of the
services provided and, at the same time, affordability for consumers on time, place of delivery, value and price [10
p.468].
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Today in the practice of Ukrainian service there are obvious positive changes in
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following directions:
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- service providers are aware of the importance of consumers in business development and competition the
consumer is fighting;
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- transforms the organizational and technological process of service with using computer technology, etc.
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It is important that all employees understand the significance of the improvement professional skills, both for
individual development and for effective work of the enterprise. Professionalism in the work creates a positive image
of the enterprise in the presentation of consumers, accompanied by rising incomes, a good reputation in the
professional environment [6].
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Because of total increase in reservation systems of today their total number it can not be set. There aren`t
relevant all ADS for Ukrainian enterprises of hotel industry. Research results of popularity of these resources and
analysis of their search engine optimization show that for the domestic hotel market there are such promising
alternative distribution systems: booking.com, trivago.com, tripAdvisor.com, hotels24.ua, hotelium.com, hotelsscanner.com. It is important to note that the activities of hotelium.com and hotels-scanner.com are based on a
comparison of prices for the various booking systems. The functioning of other submitted systems has individual
character of interaction with hospitality industry enterprises.

6.

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The dynamic expansion of ADS sinherent to domestic enterprises of hotel industry. However, such actions are
not always systemic, logic and consistent, for example, hotels of Kyiv, Lviv, Odessa, Kharkiv and Dnipropetrovsk are
characterized by the highest concentration of accommodation means and have a high level of tourist and business
attractions (table 1).
Table 1
The number of hotels in some Ukrainian cities in alternative booking systems
Cities of Ukraine
Kyiv
Lviv
Odessa
Dnipropetrovsk Kharkiv
booking.com
134
42
89
32
67
trivago.com
157
91
128
36
23
tripAdvisor.com
115
58
67
25
40
holels24.ua
61
47
38
18
27
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The relationship hotel industry of enterprises and ADS is carried out by a single principle: there is no fixed fee
for services of distribution and their functioning is financed by fees (10–25 %) from sales of hotel services. At first
sight transparency and simplicity of this structure are indisputable because enterprise of hotel industry maximizes the
number of sources of sales and reservation system makes a profit only in case of realization of its hotel services.
However, a high degree of internal competition between alternative distribution systems directly affects on the
development of own Internet resources of hotels.

7.

◦ The intensity of the use of hotels depends not only on the level of service, price policy, as well as from their location.
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Average load capacity the hotel industry in rural areas was lower and 12%, while in urban settlements - 24.7%
(including in cities Lviv - 27,9%, Truskavets - 26,3%).
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In the structure of incomes of hotel enterprises, Polish foreigners stayed abroad - 5.4 million UAH., Russian
Federation - 5.3 million UAH, Germany - 3.5 million UAH, USA - 2.3 million UAH (Figure 3).

8.

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Compared to 2016, the cost of living citizens of the Russian Federation increased by 2 times (by 2.7 million
UAH), US citizens - by 1.5 times (by 0.8 million UAH), German citizens - by 9.4% (by 0.3 million UAH).
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The total financial result of the activity of enterprises of the hotel industry of the region in 2016 amounted to
13.1 million UAH. damage However, two thirds (68%) of the enterprises of the hotel industry of the region in 2007
were profitable.
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The growth of incomes of hotel enterprises in 2016 was due not only to the increase in the number of visitors
and the expansion of the network structural divisions of the service sector, but also an increase in the cost of hotel
servants The cost of hotel services in 2016 was influenced by a significant the prices of public utilities and the rise in
prices of food.
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In 2016, the rise in prices for hotel business enterprises was higher than in the previous year and amounted to
15.6% (in 2015 - 13.4%). In general, in Ukraine, the cost of hotel services in 2016 increased by 12,7%.
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According to the State Tax Administration of Ukraine, incomes of hotel establishments of individuals in 2016
amounted to 14.2 million UAH. (9.9% of revenues from residence in hotel establishments of enterprises - legal
entities) [7].
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9.

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Conclusions.
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Development of distribution systems refers to intra-industry factors determining the development of international
tourism. Thus, the organization of the distribution system is one of the key elements of the development of the hotel business.
A modern hospitality business should be focused on continuous improvement of the services provided, forms and methods of
marketing, including the distribution system. As part of the development of the latter, innovative approaches are being
developed that enhance the competitiveness of the hotel company and its successful positioning on the market. Therefore,
commercial services of enterprises of the sphere hospitality seek to make their marketing strategy more diverse and active. To
achieve these goals, the actions of competitors are analyzed, using direct marketing techniques, using proven channels of
marketing. The transfer of sales functions to intermediaries enables the hotel to focus on the quality and competitiveness of its
services and reduce its costs of production of its services somewhat.
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Thus, the development of tourism in the whole world brings increased requirements to the quality of the hotel
service, which depends on the efficiency of the distribution system.
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To increase the efficiency of hospitality industry enterprises appropriate:
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- identify the goals of strategic development;
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- actively implement innovative technologies in the hotel business;
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- provide a high level of service provision.
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The effectiveness of activities aimed at improving the efficiency of activities hospitality companies, should be
based on its precise organization. As an integrated system, the sphere of hospitality industry should be based on the
establishment of appropriate forms of management (methods, incentives). Taking into account the peculiarities of the
hospitality industry, the basis for increasing the efficiency of the distribution system in it, should be the basic
principles of the management process of hotel enterprises: innovation, efficiency of functioning, timeliness of
decision-making.
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10.

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