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Abstract
Today the hospitality industry is booming day by day which is impacting by rise in number of hotels. The supply of rooms is increasing and to meet the optimal revenue, hotels are implementing revenue management in various areas of the hotel. Revenue management takes into consideration the five elements, namely product, price, customer, time and distribution channel. The number of distribution channels for hotels have increased over the past few years which has also helped hotels optimizing the room revenue. But there is no concrete measure to check productivity of a said distribution channel. The paper explains the concept and derivation of channel productivity ratio and how this ratio can be utilized in star category hotels.