Understanding the Role of a Hotel Channel Manager

Traditional channel management processes involve manual inventory and rate-related entries across connected channels that make the system prone to human errors, misinterpretations, and delays.

To overcome this, hotels embraced technology.

A hotel channel manager is a system that allows hotels to manage all their hotel distribution channels simultaneously. It helps a hotel list room inventory, and update room availability and rates on all the connected booking channels and hotel websites, as well as manage guest data.

With the percentage of guests using the internet to plan and book their stay increasing manifold every day, growing technological sector, etc., hotel presence on OTAs has become a common sight.

In fact, the hotel channel management market was valued at US$ 687 Mn in 2022 and is expected to reach a market valuation of US$ 1,618.23 Mn by 2033, growing at a steady CAGR of 8.1% between 2023-2033.

With the channel manager, this channel presence and management gets optimized.

It automatically updates any changes in room availability and rates on all sites as well as hotel PMS in real-time after a guest makes a booking; enhancing synchronization of inventory data across all platforms.

Streamlining Distribution Channels for Maximum Reach

A channel manager through integration with other key hotel systems such as hotel property management system (PMS), revenue management system (RMS), etc., offers data about the most suitable distribution channels to connect to and the share of inventory to be allocated to each of them.

Hotels can get detailed reports and insights into which hotel distribution channels are the most popular and performing and best fit for the business. A channel manager further provides data related to the most preferred room types, sales channels, sales seasons, etc.

Using this data, you could make data-driven and hence, informed decisions about your property listings, the platforms that you need to bid adieu to, and the ones that need to be updated. Hotels can further create more effective marketing and pricing strategies.

Real-Time Inventory and Rate Management Strategies

A channel manager automates and updates your hotel’s room inventory and rates across all connected channels such as Booking.com, TripAdvisor, etc., as well as the hotel website, in real-time. This reservation data is shared on a two-way basis with the PMS for further communication and coordination between different departments.

For example, if a guest books a room on Expedia, the channel manager will share this information with the hotel PMS. At the same time, it will also update the inventory across other connected channels such as Booking.com, Agoda, etc.

Since changes are updated in real-time on all sites, the hotel does not have to go through the embarrassment of over or double-bookings.

A channel manager thus simplifies and streamlines hotel distribution channel management in this manner and allows a hotel to reach a wider audience through them strategically.

The data analytics from the connected RMS further allows hotels to charge the most optimal prices. And hotels also get to practice dynamic pricing effectively using this tool; allowing a hotel to achieve full occupancy at the most profitable prices.

There is the reason that 86% of hoteliers stated in a survey that a channel manager is one of the most crucial hotel systems for day-to-day operations.

Leveraging Data Insights for Revenue Optimization

Channel manager technology offers valuable insights to revenue managers to adjust their distribution strategies as per market demand and guest preferences.

By studying the most profitable channel mixes and optimal occupancy levels, rates, and inventory allocation percentages, a channel manager allows a hotel to make data-driven revenue allocation decisions. These strategies are more accurate and realistic and hence, more revenue-generating.

Moreover, revenue managers use these advanced analytics to dynamically make the most suitable pricing strategies. Identification of under or non-performing as well as the best-performing channels in the report by the channel manager further allows a hotel to be present on the most paying channels.

Thus, the channel manager offers in-depth reports and hotel data analytics on the effectiveness of each channel and allows you to:

optimize channel mix,
charge the most profitable price as per demand and supply,
negotiate commissions,
create the most effective marketing strategies, and
end non-fruitful partnerships;

reducing costs and boosting revenue.

Choosing the Right Channel Manager for Your Hotel!

Choosing the right channel manager is rocket science if you do not have the right guidance.

But, if you have landed on this page, we will not let you go without the right solution!

Hence, introducing ChannelSyncro.

From smart inventory and price control, seamless integrations with 100+ OTAs, PMS, etc., to in-depth channel monitoring and AI-based performance analytics and much more, this smart channel manager offers it all with efficiency.