The impact of distribution channels on budget hotel performance

Abstract While distribution channels substantially influence revenue management for hotels, previous studies have rarely provided empirical evidence for the impact of different use of distribution channels on hotel performance. This study investigates the current practice of distribution management in the budget hotel industry in China. Using a data set from the operation of budget hotels in multiple cities in China and two-stage least square regression analysis, the results demonstrate the impact of different distribution channels and their combinations on RevPAR. This study provides insights for distribution management in budget hotel market.