Managing online distribution for tourism growth in india

Managing online distribution

for tourism growth in India

Kirti Dutta and Kamal Manaktola

Institute for International Management and Technology, Gurgaon, India

Abstract

Purpose – With the growing use of the internet, online distribution is emerging a communication

and distribution channel. This paper aims to explore the role of the internet as a tool for sustainable

tourism in India, especially as deployed by a large segment of three star and four star hotels in India.

It discusses the practices currently employed by the mid-segment hotels for the distribution of their

services and seeks to delineate how they can use this as a tool for working towards sustainable

growth.

Design/methodology/approach – The paper discusses how selected hotels in the National Capital

Region (Delhi) are deploying online distribution. Their web sites have been assessed to evaluate how

they fare in a generic search on the three major search agents currently being used in India: Yahoo,

MSN and Google. The web sites are assessed as to whether they are likely to attract and provide

enough information to potential tourists. Discussions with practitioners from the industry have also

been incorporated to give more conclusive insights into how they practice the online distribution of

their services.

Findings – The paper points at elements which should be incorporated while designing the web sites

so as to effectively distribute their inventory and make it easily accessible to tourists looking for

accommodation. This will reduce the intermediaries involved and, as this is paperless transaction,

result in sustainable low-cost economic growth.

Research limitations/implications – The paper provides an insight into what consumers have

access to when they search for hotels via different search engines and whether or not this information

is sufficient to precipitate a decision when choosing a particular hotel. If this can be managed

effectively, customers can go online for all their bookings. This would yield cost savings for the

organization and the customer, and in so doing, contribute to sustainable growth.

Practical implications – These findings are relevant to academics and practitioners as they offer

an insight into online distribution channel management and communications with potential

customers.

Originality/value – Relatively few studies have been conducted in the field of online distribution in

the hospitality industry. This paper aims to assist hospitality operators in framing strategies to use the

internet as a tool for sustainable tourism.

Keywords Internet, India, Tourism, Sustainable development, Hotels, Information retrieval

Paper type Research paper

Introduction

India has historically been an attractive destination for curious travellers and Indian

history is replete with their stories. While Conde Nast Traveller ranks India as the

fourth most preferred travel destination, Lonely planet rated it among the top five

destinations on the world map. In the past three-and-half-years there has been a

45.5 per cent growth in foreign tourist arrivals, increasing India’s foreign-exchange

earnings from $3.5 billion in 2003 to $5.7 billion in 2005. It was also observed that

foreign tourists in India spent an average of $1,470 per person, i.e. nearly double the

global average of $844; compared to France, the top tourist destination in the world,

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1755-4217.htm

WHATT

1,1

40

Worldwide Hospitality and Tourism

Themes

Vol. 1 No. 1, 2009

pp. 40-51

q Emerald Group Publishing Limited

1755-4217

DOI 10.1108/17554210910949878