Channel management strategies: Best practices for your hotel

After looking at some of these channel-related challenges in the hospitality industry, now let’s look at strategies for seamless channel management.

Channel Management Strategies for Maximum Benefit

Channel management, if done right, could help a hotel to smartly be on all the right platforms, and attract bookings rapidly. To make this happen, we are sharing some channel management strategies below for you to take notes.

1. Create a mobile-friendly website to attract direct bookings

In order to boost bookings through the direct distribution channel i.e., the hotel website, a business should have a user-friendly website optimized for mobile and search engines, with a smart booking engine. These are the prerequisites for boosting direct bookings.   

Although OTAs help a hotel get domestic and international visibility, direct bookings should not be neglected. They help a hotel get reservations without paying any hefty amounts in commissions.

Users sometimes check the room rates on OTAs and then visit the hotel website to look for more property-related information and better deals and make a direct booking.

In this case, the hotel does not want the visitor to go back to the OTA due to a bad browsing experience on the website. The website should be responsive i.e., adapting to different screen sizes and resolutions as most of the search happens on smartphones today. 

Furthermore, it should have a simple, intuitive yet engaging interface for ease of use. All the essential pages should be updated regularly, and be easily visible, with CTAs (call-to-action) that are catchy yet easy to understand.

The website must offer guests some perks, promotional offers, discounts, loyalty programs, subscription models, etc., to incentivize them to make a direct booking.   

It should also have a smart booking engine with an easy booking process. Lastly, the hotel website should be optimized for search engines for higher ranks and greater visibility and engagement chances.

All this could be done by leveraging CreateWith, a smart website builder that helps a hotel get the most stunning as well as a profitable website that is customizable to match the brand’s aesthetics.

2. Embrace Channel Manager and AI technologies

Emerging technologies and trends are redefining industries and their workflows. The hospitality industry is no different.

With the introduction of solutions such as hotel property management systems, channel managers, AI chatbots, etc., hotel operations as well as guest experiences are getting enhanced.

In fact, a lot of modern-day hotels manage their multiple hotel distribution channels using a channel manager. This solution allows hotels to effectively handle, and update inventory and rates on multiple channels in real-time.  

Through channels-related data, a channel manager helps a hotel to create and leverage the right mix of the most suitable and profitable booking channels for the business and share of allocated inventory based on the hotel's audience and objectives.   

It further helps a hotel to make data-driven, informed decisions through in-depth channel and performance monitoring and analysis. 

Bullo River Station is a property located in the Northern Territory bordering Western Australia. It is surrounded by rugged hills and only accessible by air, through a private charter plane. Despite its location, this property rapidly attracts new business. How?  

The hotel stays connected to guests from across the globe with the latest channel manager technology that integrates with their booking engine. This increases their online visibility, and exposure, as well as helps them capture potential bookings. 

Thus, hotels should not shy away from adopting this technology at their property for more streamlined channel management and greater online visibility.  

Furthermore, they can also leverage Freddie - AI chatbots for 24*7 customer support and recommendations on the website for visitors coming from different channels, looking to book rooms or services.   

The AI data and analytics could help hotels understand guest preferences and booking behavior and personalize guest journeys and services for them. Thus, AI chatbots in the hospitality industry could enhance the guest experience, boost bookings, and repeat business. 

3. Optimize rate and inventory management

To keep your revenue metrics looking satisfactory, you must optimize your rates and inventory management. This can be done by implementing dynamic or seasonal pricing, practicing yield management, and maintaining real-time inventory updates.  

By implementing dynamic pricing, hotels can keep the occupancy rates steady. This pricing strategy is applied by considering market demand, seasons, and competitor rates. The rates are charged keeping these factors in mind.   

For example, for low seasons, the rates are decreased to attract more crowds. Similarly, during high seasons, the rates are increased to capitalize on the increased demand and limited supply. This way hotels optimize their prices and available inventory.   

Then, with the help of a channel manager, allocate room inventory smartly across different distribution channels; optimizing yield management.   

Also, update inventory changes across all the distribution channels in real-time to avoid overbooking and underselling or any other discrepancies. This can be best done using automation in channel managers.

4. Forge connections with distribution partners

For effective channel management, it is important to forge strong connections with distribution partners and nurture them. It is thus important to constantly communicate and collaborate with them, and share regular updates on room rates, availability, and promotional campaigns.   

Furthermore, you must establish clear contractual agreements with them, enforcing rate parity and preventing any unauthorized discounts. Moreover, regularly audit their compliance to maintain safety and consistency.

You can also create joint marketing campaigns in collaboration with them to access their wider audience and improve engagement. Furthermore, be regular in reviewing and negotiating terms with these partners to grab competitive commission rates, preferred placements, and many such beneficial terms.

Lastly, closely monitor their performance to ensure that the partnership is still bearing you fruits.

5. Be on multiple platforms

One of the most important channel management best practices is to be visible on as many channels as possible and align with your objectives. More visibility and presence mean more opportunities and conversions.

However, if you want to target a specific region or audience, invest in dedicated channels and not all. This strategy will be more profitable for you.

6. Integrate channel manager with hotel PMS

Integrating a channel manager with hotel PMS is a crucial channel management strategy that facilitates a more connected and informed operational ecosystem.

Real-time updates generated by this integration allow hotels to skip manual entries and eliminate the room for errors and discrepancies.

A property management system is a centralized platform that allows a channel manager to access crucial data from multiple other integrated key hotel systems such as revenue management system (RMS), and central reservation system (CRS), to implement revenue-optimizing strategies and rates.

RMS studies and evaluates the market demand, competitor's rates, and other elements instrumental for pricing strategy and makes suggestions to the channel manager.   

Thus, investment in top hotel PMSs, and integrating it with the hotel channel manager is important and beneficial.

7. Focus on online reputation management

Lastly, as a channel management best practice, it is highly important to maintain an online reputation on channels that would get you bookings and other popular channels too.

Review and booking sites such as Booking.com, TripAdvisor, and others; search engines such as Google, Yahoo, etc., and social media platforms such as Facebook, Instagram, etc., will get you in direct bookings or drive traffic to your hotel website for direct bookings.

One crucial online reputation element is review. Ensure that you collect feedback during and post-stay using complete feedback management solutions such as HEDA.

This is important because if the feedback is not taken at different guest touchpoints, a hotel will not be able to understand if the guest journey is getting hampered due to any reason and won’t be able to fix it timely. This same negative emotion would be posted online post-stay and will damage the hotel’s reputation.

Thus, during-stay feedback is as important as post-stay feedback and reviews. Furthermore, ensure to ask guests for reviews at the check-out. Inventive them with some coupons, offers, or discounts that they can avail for their next visit after they post reviews. This would encourage them to post reviews and visit again.

Lastly, revert to every review regardless of its positive or negative emotions. Not replying to negative reviews does a similar amount of damage as the review itself. So, ensure acknowledging positive reviews as well as cordially yet professionally reply to negative reviews as well.

This would create a positive online image for your hotel and boost your bookings through direct, and indirect channels.

Choosing the Right Channel Manager for Hotels

Since we have understood the importance of a channel manager for streamlined and effective channel management, it is also essential to choose the most suitable one for your unique hotel needs.   

Introducing ChannelSyncro, for all your channel-related optimization needs.   

This cloud-based channel manager allows you to effectively manage multiple channels with an option to integrate with 100+ OTAs, multi-currency support, and seamless PMS integration.   

ChannelSyncro can help you leverage real-time updates, and smart pricing, implement inventory control, make data-driven decisions using in-depth monitoring and AI-powered performance analytics, and much more.   

With this EASY-TO-USE cloud-based channel manager, you can be at the top of your channel management today.   

Just book a demo and start your 14-day FREE TRIAL today!