Adopting a network marketing model as a distribution channel for hotels in the maldives: An exploratory study

ABSTRACT

Although hoteliers are looking for new ways to distribute their products and services, the concept of network marketing as a method of distribution has yet to be widely adopted by the hotel industry. This study aims to explore the feasibility of adopting the network marketing distribution model for hotels. Results from semi-structured interviews conducted with the sales and marketing managers/directors of selected hotels and resorts in the Maldives indicated that the network marketing concept can be deployed in the distribution strategies for hotels. However, the association of network marketing with illegal pyramid schemes and a lack of available resources are identified as possible barriers to the implementation of such a concept. This study proposes several recommendations to overcome those barriers.

KEYWORDS:

• Network marketing
• multi-level marketing
• hotel industry
• distribution channel
• Maldives