Without a channel manager, hotels must manually update inventory and availability on each channel -- a tedious, time-consuming process that often creates inconsistencies across channels.
A channel manager software also empowers hotels with greater control over the channel mix. Revenue managers can set specific targets on a channel-by-channel basis, and then adjust inventory and/or pricing on individual channels to optimize revenue. By using this dynamic approach, Revenue managers can more precisely manage a hotel’s distribution and prioritize the most profitable channels at any given time.
Presently, only about 50% of hotels worldwide employ dedicated channel managers to help them automate, manage and optimize online distribution. If your hotel is considering a channel manager, here are the top criteria to use when choosing the best channel manager for your hotel.
What is Channel Management in the Hospitality Industry?
Channel management in the hospitality industry refers to the process of managing and optimizing the distribution of a hotel’s inventory across multiple online booking platforms and channels. These channels can include online travel agencies (OTAs) like Booking.com and Expedia, global distribution systems (GDS), and the hotel’s own website. Effective channel management ensures that room availability, pricing, and reservations are consistently updated in real-time across all platforms, preventing issues like overbooking or rate disparities.
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Channel Managers Shortlist
Here are 10 of the top Channel Managers that are covered in this article:
- 1. RateGain — Best for optimizing pricing strategies with dynamic revenue management
- 2. eviivo — Best for a user-friendly interface suitable for all skill levels
- 3. Cloudbeds — Best for integrating with over 300 distribution channels
- 4. roomMaster — Best for managing multiple distribution channels effortlessly
- 5. SiteMinder — Best for automating tasks to save time and reduce errors
- 6. Yanolja — Best for managing multi-property operations effortlessly
- 7. Profitroom — Best for expanding property reach through broad connectivity
- 8. freetobook — Best for synchronizing availability, rates, and bookings across channels
- 9. Hotelogix — Best for accurate, current information across all distribution channels
- 10. Blastness — Best for managing multiple distribution channels effortlessly
What is a Hotel Channel Manager?
A hotel channel manager is a simple yet powerful tool that increases occupancy, saves time, boosts direct bookings and maximizes online sales. It allows a hotel to expand its reach and online bookings, as well as more easily manage its rates, availability, and reservations.
How Does a Hotel Channel Manager System Work
With a channel manager, hotels can connect to hundreds of online distribution channels in real-time. This allows the hotel to boost visibility (and ultimately reservations) with almost no risk of being overbooked. Channel managers can connect to any of the following:
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Online travel agencies (OTAs): Booking.com, Agoda and Expedia, also any metasearch channel that has direct booking functionality (think TripAdvisor and Google Hotels)
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Vacation rental platforms like AirBnB and Homeaway
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Brick and mortar travel agencies: Channel managers allow you to sell inventory via GDS
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Direct: this is through your hotel website and booking engine
Hotel Channel Management System Benefits
A channel management system is essential for any hotel looking to maximize visibility, boost revenue, and improve operational efficiency. Here are the key benefits of implementing a hotel channel manager:
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Real-Time Updates Across Channels - The system automatically synchronizes room rates, availability, and bookings across all connected channels in real time. This minimizes the risk of overbooking and double bookings, ensuring that your inventory is always up to date.
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Increased Visibility and Reach - By distributing your inventory across multiple online travel agencies (OTAs) and global distribution systems (GDS), your hotel can reach a broader audience. This increased visibility leads to higher chances of securing more bookings.
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Time and Labor Savings - Automating the process of managing rates and availability across channels significantly reduces the time spent on manual updates. This frees up staff to focus on other important tasks, such as guest services, rather than worrying about data entry.
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Optimized Revenue Management - A channel management system allows hotels to quickly adjust rates based on demand, competitor pricing, and market trends. This ensures that your pricing strategy remains competitive, helping to maximize revenue and occupancy rates.
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Better Data Accuracy and Fewer Errors - Manual updates across multiple platforms can lead to inconsistencies in rates and room availability. A channel management system reduces the likelihood of human error, ensuring that the data remains accurate across all distribution channels.
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Improved Booking Efficiency - With automated processes, the booking flow becomes much more efficient. All reservations made across platforms are instantly reflected in the property management system (PMS), reducing administrative delays and ensuring a smooth guest experience.
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Enhanced Reporting and Insights - Most channel management systems offer detailed reporting features, providing insights into booking trends, revenue performance, and channel effectiveness. This data enables hotel managers to make informed decisions about where to focus marketing efforts and which channels are most profitable.
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Deep Integrations with Pricing Rules - A good channel manager should have the ability to integrate with all the hotel’s existing core systems, such as the PMS, RMS, and CRS.
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PMS: The property management system is the central hub for hotel management, so data from the channel manager must flow back and forth.
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RMS: To accurately and effectively manage revenue and profits, the revenue management system and channel manager need to share data.
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CRS: For seamless operations and a single unified view of property management, the channel manager must feed data to the central reservation system which then links with other systems.
Choosing the Right Channel Manager for Your Hotel
Channel manager software is a valuable resource for revenue managers as they balance profitability-per-booking with gross room revenue targets. Distributing your inventory to the broadest base of connected channels maintains visibility and increases your chances of bookings. The ability to selectively choose online channels keeps you in control over the optimal channel mix and profitability at the booking level.
When choosing a channel manager provider, here are some questions to ask to determine the best channel manager for your property:
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How many channels are you connected to?
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Are you connected to the most important channels for my hotel?
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How many channels, room types per channel, and days can my hotel manage simultaneously?
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How far out can you manage availability?
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What reports will you provide me? Will you show me which channels deliver the most bookings and which provide the most revenue?
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How long does the implementation take?
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Does the channel management system support multiple users?
In conclusion, a hotel channel manager is an essential tool for any property looking to streamline operations, maximize bookings, and improve profitability through optimized inventory distribution. With real-time updates, increased visibility, and automation of manual tasks, a channel manager can transform how hotels manage multiple booking platforms, reducing errors and enhancing guest satisfaction.
As you consider implementing a channel management system, it's crucial to evaluate your hotel's specific needs, from integration capabilities to scalability, ensuring you choose the right solution that aligns with your goals. The right channel manager will not only increase efficiency but also help your hotel stay competitive in today’s dynamic market.
