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Redistribution (Hotel Revenue Management)
Redistribution is a dynamic concept introduced into hotel channel management. Channel management refers to the management by hotels of room rates, availabilities and restrictions as distributed across multiple sales channels and online travel agents (OTAs), a core practice in hotel revenue management. Channel manager software allows hotels to control the distribution of these room parameters from a convenient single login area that connects in the background to the required sales channels via XML or scraping connectivity. The concept of redistribution is a dynamic process in advanced channel managers whereby incoming reservations that reduce the room availability, or other dynamic variables, trigger a reassessment of rates, availabilities or restrictions per channel which are then distributed out again to relevant channels. This ongoing dynamic redistribution can allow hotels to automatically close off certain distribution channels and move room availabilities preferentially to other channels as inventory drops, allowing hotels to derive better margins on favoured channels.