Channel Managers for Hotels: How to Choose a Channel Manager

Posted by Erric Ravi on March 19th, 2020

Having the best product out there won't do any good if one's target audience can't find it. And that is why hotels partner with OTAs (Online Travel Agents) such as Expedia, Hotels.com, MakeMyTrip, Orbitz, Booking.com, and TripAdvisor. But with that came the need to keep rates and inventory up to date on all the channels, the more channels one is present on, the more work it is. This is where the role of channel manager software comes into play.

What is a Channel Manager? 

Channel Management is the process of managing online distribution channels to sell hotel inventory to various agents across the globe. A Channel Manager allows one to directly connect with those agents, such as OTAs (Online Travel Agencies), as well as smaller retail agents, in different markets.

If one is currently part of the 50% of hotels that don't use a channel manager, they are probably spending hours every week uploading and updating rates, wondering where parity issues are coming, thus, wishing there was a way to make all this more accessible and quicker. 

It's not too late, one can use a channel manager software, an application designed to help accommodation providers efficiently manage their online distribution and let artificial intelligence (AI) do the rest.

What makes it so great?

A good channel manager for hotels connects the property to hundreds of OTAs, cuts admin work by keeping prices updated everywhere, helps to manage inventory and rate parity, and can also boost direct bookings. In short, a right channel manager is like a virtual assistant doing the grunt work, so hoteliers have time for other essential things to increase revenue.

With travel distribution, the scenario is becoming more and more complex, the need for a channel manager is increasing- unless one likes to upload rates manually and leave direct booking revenue on the table. So how to choose the best channel manager:

Ways To Choose Best Channel Manager For Hotels

Identify Target Channels

Every booking channel has value, but most of the bookings probably come from just a handful. With this in mind, any channel manager, one relies on must be able to support the channels that are most important to their business.

However, one should also investigate the other integrations available to make sure that the channel manager they are choosing offers access to a large number of promising channels.      

Calculate a Practical Budget

How much can one afford to pay on a monthly or yearly basis? Keep in mind that a channel manager is more of an investment than an outright expense, and if one uses it wisely can actively drive revenue for their hotel. When calculating the budget, consider how important a channel manager is to the overall strategy.

Try the Reporting Tools

Finding the right channel mix can be difficult, but it gets a little easier when the channel manager provides reports showing what channels are working and where one's revenue is really coming from. When reports are easy to create, clearer, and in-depth, one quickly learns which channels make a meaningful difference to them.

Experiment with the Interface

The channel manager should be easy to use. Before making any final choice, experience the product first hand. Observe whether the UI is user friendly, interface feels automatic and if information comes across clearly. Don't settle for a tool that makes work harder and more complex.

Investigate Support Options

When the system is on the fritz, one needs service and support immediately. After exploring the specific software solution, one must investigate the provider too. Find out how their support structure works, what kind of hotels they work with, and whether they have high client ratings. A channel manager is only as good as the provider standing behind it.

A great channel manager makes it effortless to engage with the audience along the way and to ultimately convert them into satisfied guests. Choose the best one!