5 Problems Solved by Hotel Channel Management Software

This solution can integrate with other key hotel systems such as hotel property management system (PMS), revenue management system (RMS), central reservation system (CRS), etc., to create synergies and streamline hotel operations and guest management.   

After understanding what a channel manager is, let’s look at some of the channel management problems solved by this transformative technology.

How does a channel manager solve these 5 channel management challenges?

There are plenty of hospitality industry challenges that a hotelier and hotel staff must overcome to thrive in this competitive sphere.

Hotel channel management is one aspect of a hotel business that, if not managed properly, could become a major challenge. It can potentially hinder a hotel’s growth by hampering guest acquisition and damaging its reputation. All this will eventually lead to revenue losses.

However, the channel manager technology allows hotels to tackle these challenges like a boss!

But what are channel management challenges and how a channel manager help? Let’s understand.

1. Problem: Manual Data Entry & Overbooking

• With traditional channel management methods, a hotel must manually enter reservation details in all the relevant hotel internal systems. This demands significant time and human resources.

At the same time, it must update inventory and rate changes across all the connected channels timely enough for any visitor to view the updated information.

Since hotels are vibrant places, always thriving with activity, the window to do all this is not huge. This results in potential delays, errors, and future conflicts and disputes.   

• Moreover, the shared inventory technique helps hotels to sell rooms. Under this technique, the same room is sold or listed under multiple room types.
• Manually managing the same could lead to a single room being booked twice. 

Solution:

• A hotel channel manager maps room types based on each channel’s formatting requirements; eliminating the need for manual reconciliation and preventing duplications.  
• When a guest makes a booking on any connected channel, this solution automatically updates inventory and rate changes across all the other channels.   

This is done using a pool inventory model wherein the inventory is aggregated into a single place and bookings are pulled from this pool based on real-time availability.   

This also prevents a room from being booked more than once. The same is later updated on the hotel PMS and to all the other key hotel systems from there.    

• A channel manager transmits reservation data using two-way sync via XML. It connects each connected channel’s extranet and pushes Average Rate Index (ARI) updates
• to the particular channel and imports the data into the hotel PMS and CRS dashboard as well. 

This entire process saves hotels the time and human effort to log into each connected channel’s extranet and update the ARI multiple times daily. 

• Moreover, with all the reservations/cancellations data visible on a single screen in real-time, the risk of double or over-booking is significantly reduced or eliminated.

2. Problem: Limited Distribution & Visibility

• With traditional channel management, hotels might not choose the distribution channels based on market and guest data. As a result, the channel mix might not prove to be profitable for the hotel.
• Moreover, hotels might, to date, rely on manual distribution channels, reducing their visibility and restricting access to distant and global markets and diverse travel segments.

Solution:

• A channel manager allows a hotel to connect with some of the most popular domestic and international booking channels among guests, significantly enhancing its visibility and reach.

Channels such as OTAs (online travel agencies), global distribution systems (GDS), metasearch engines, etc., are accessible through the right channel managers.

• Furthermore, a channel manager allows you to create a diverse mix of high-performing and suitable channels for your business and allocate inventory as per your objectives for maximum benefit.

3. Problem: Inefficient Reporting & Performance Tracking

• One of the main challenges of traditional channel management systems is the lack of reporting, analytics, and performance monitoring.
• Interestingly, one of the key channel management best practices is data-driven channel-related decisions and strategies.

Solution:

• Some of the best channel manager solutions such as ChannelSyncro provide built-in analytics tools that allow hotels to track their performance across all the connected channels.

• Channel managers offer insights by analyzing data such as market structure, booking trends, channel performance, pricing strategies, and revenue. The data is presented in digestible forms such as charts, diagrams, and other graphical modes.
• Hotels can even access granular stats or filtered information such as the most preferred room types, seasons, etc.
• This reporting and data analytics feature helps hotels create practical and productive distribution, pricing, and marketing strategies.

4. Problem: Guest Data, Communication, and Review Management

• With traditional channel management tools, guest data collection and management might not be centralized and less streamlined. As a result, guest data could not be used to elevate guest experience.
• Furthermore, with manual entries of changes in room inventory and rates, confirmation and update communications to guests may get delayed, hampering the guest experience at one of the first guest touch points.
• Traditional channel management methods or systems also may lack review management capabilities. This results in missed reviews or feedback and hampers online reputation and bookings.

Solution:

• A channel manager helps to create guest profiles which in turn allows hotels to offer more personalized services.

Using a channel manager, you can save guests’ details and data such as payment details, tastes, and preferences, requests, etc., on a single, centralized platform.

This centralization of data speeds up any future booking process and allows you to offer services and make recommendations based on a guest’s past and present preferences.

• With card details already saved in a centralized system, the check-out also becomes quicker, hassle-free, and more personalized and humanized, in terms of hospitality.
• Further, a channel manager compiles all reservations and communication from multiple booking channels into a single platform. This enables hotel staff to keep a more effective communication with the guests; reducing the chances of missed messages or over-bookings.
• It also offers real-time updates on room availability and rates across all connected channels, ensuring guests receive accurate information and instant confirmation and change/update communications, and eliminating the likelihood of future conflicts or dissatisfaction.
• Lastly, multiple channel manager solutions offer integrated review management tools. These tools allow hotels to monitor and promptly respond to guest reviews across multiple channels from a single dashboard. This allows them to maintain a positive reputation and streamline online reputation management.

5. Problem: Scalability & Future-Proofing

• Management of multiple channels with traditional methods is time-consuming and prone to errors.
• These methods may lack integration capabilities, limiting their ability to adapt to changing technology, guest trends, and new channels.
• Manual adjustments to pricing with traditional methods can be inefficient and less responsive to market dynamics.

Solution:

• With a channel manager, hotels get a centralized platform to manage all their distribution channels. With this centralization, hotels are able to streamline their operations and scale easily as the number of channels increases.
• Channel managers, more often than not, offer seamless integration with other key hotel systems. This allows for smooth data flow between these systems, enhances operational efficiency, and provides actionable insights for future planning.
• Furthermore, as new distribution channels are introduced in the marketplace, a channel manager can easily and quickly integrate with them. This allows hotels to reach and access new markets and audiences and remain in the competition even when the market evolves.
• A channel manager further allows hotels to effectively implement dynamic pricing across all connected channels and respond quickly to changes in market demand and maximize revenue potential.

After learning about some channel management challenges, let’s move on to understanding how to choose the right channel manager to overcome them.

Tips for Choosing the Right Hotel Channel Management Software

ChannelSyncro is the best hotel channel manager that can help you overcome the above challenges. It has all the right features and capabilities to allow you to streamline your channel management. Some of its features include:   

• Smart Pricing & Inventory Control   
• In-depth Channel Monitoring and AI-based performance analytics   
• Seamless Multi-OTA Integration  
• Real-Time Updates  
• Seamless PMS Integration
• Extensive Customization 

...and much more.

So, choose the right hotel channel management and start your 14-day FREE trial today!