The HSMAI Global Distribution Advisory Board recently met to offer their insights into what every Sales leader needs to know about Distribution.

The board spoke about the complexity of distribution and the different groups that work to distribute rooms to third party partners. There can be a disconnect between sales & distribution when the teams are not working together. This can result in contracts that are difficult to execute and frustration between the teams. We must work together to drive our organizations Distribution strategy forward.

Here are ten takeaways for Sales Leaders:

  1. When negotiating a third-party partner contract, Distribution & Revenue Management should have a seat at the table. This ensures that the terms of the deal can easily be executed.
  2. Be sure to include all teams in quarterly QBR meetings (account management, connectivity, content, revenue management.)
  3. Understand the cost to work with each partner. Its not all about margins. There are typically several aspects that make up a Distribution contract and then you need to factor in the costs to manage each partner as well – connectivity, payments, content and reservation management costs should be reviewed.
  4. Revenue, Sales, and Distribution should have shared goals – not individual goals. This is especially true if they managed under different parts of the organization.
  5. Distribution teams love to talk about what we do! And we love to educate! Work together to gain a high-level understanding of how our world works, especially connectivity.
  6. Before a contract is signed, review the value of a partner and what they will bring to the table with the Revenue & Distribution teams.
  7. It was noted by all members that it is most effective for the organization when Sales, Revenue & Distribution report up through the same leader.
  8. Include Distribution in training and onboarding for sales & revenue management.
  9. Brainstorm ideas & solution together on things like parity or onward distribution of rates.
  10. Distribution is highly complex, don’t be afraid to ask questions!

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