What is a channel manager?

Last Updated On: 27/03/2024

In today's digital world, travelers have numerous choices at their fingertips. Gone are the days of solely relying on direct bookings. While this opens doors to a wider audience, it also presents a significant challenge for businesses: maintaining accurate availability and rates across countless online travel agencies (OTAs) and booking platforms.

This is where channel managers come swooping in to save the day. They act as a central hub, seamlessly connecting your property management system to a multitude of booking channels. But how exactly do they work, and what are the benefits of utilizing them?

What is a channel manager?

A channel manager is a software designed to simplify managing your presence across numerous online booking platforms in various industries, particularly in hospitality.

Here's a breakdown of what a channel manager does:

• Connects your central system: It integrates with your property management system (PMS) or reservation system, centralizing all your inventory and rate data.
  
  
• Streamlines updates:Whenever you make changes to rates, availability, or other property information in your central system, the channel manager automatically pushes these updates to all connected booking channels (e.g., Booking.com, Expedia, Airbnb) in real-time.
  
  
• Eliminates double-bookings:By having real-time synchronized inventory, the channel manager prevents overbooking. If a room is booked on one platform, it instantly becomes unavailable on all other connected channels.
  
  
• Centralized management: You can manage everything from a single interface, saving you the hassle of manually logging in and updating each booking platform individually.

In essence, a channel manager automates the process of managing your online presence, saving you time and ensuring consistent information across various channels.

Why do you need a channel manager?

As the hospitality industry has become increasingly competitive, it is more important than ever for hotels to have a strong presence on various OTAs. A channel manager helps to ensure that a hotel can list its rooms on multiple OTAs (Airbnb, Google Hotels, Booking.com & Expedia) without updating each one manually. This saves the hotel time and resources and allows them to dynamically adjust their rates in real time based on changes in occupancy or demand.

Benefits of Using a Channel Manager?

1. Increased Revenue and Wider Reach:

• Channel managers provide access to a vast network of potential guests through multiple booking platforms.
  
  
• This expands your online visibility, attracting travelers who might not have otherwise discovered your property.
  
  
• By ensuring consistent availability and rates across various channels, you capture more bookings and maximize your revenue potential.

2. Enhanced Efficiency and Reduced Costs:

• Manual updating of rates and availability on individual booking platforms is eliminated, saving countless hours.
  
  
• Channel managers automate this process, freeing up your staff to focus on other crucial tasks like guest communication and service delivery.
  
  
• This translates to reduced operational costs and increased staff productivity.

3. Goodbye, Overbooking Headaches:

• Inventory is synchronized in real-time across all channels, preventing double bookings and guest frustration.

4. Consistent Information and Rate Parity:

• Channel managers ensure that your property information, including descriptions, photos, and most importantly, rates, are always up-to-date and consistent across all connected platforms.
  
  
• This builds trust with potential guests and eliminates confusion caused by price discrepancies.

5. Data-Driven Decision Making:

• Many channel managers offer comprehensive reporting features.
  
  
• This allows you to gain valuable insights into booking trends, channel performance, and guest behavior.
  
  
• By analyzing this data, you can make informed decisions about pricing strategies, marketing efforts, and resource allocation to optimize your online presence and overall business strategy.

Best Practices for Your Hotel's Channel Management Strategy

1. Selecting the Right Channel Mix:

• Identify your target audience.
  
  
• Analyze channel performance.
  
  
• Consider commission rates.

2. Optimizing Your Hotel Listings:

• Craft engaging descriptions that highlight your hotel's unique selling points and utilize relevant keywords to improve search ranking.
  
  
• High-Quality Photos.
  
  
• Ensure all details like room descriptions, rates, and policies are up-to-date and consistent across all channels.

3. Implementing Effective Rate Management:

• Adjust rates using your channel manager's capabilities based on factors such as seasonality, demand, and competitor pricing.
  
  
• Create tailored promotions and packages to attract specific guest segments and increase bookings during off-peak periods.
  
  
• It's important to stay up-to-date with your competitors' pricing and make necessary adjustments to your rates in order to remain competitive.

4. Leveraging Data and Analytics:

• Gain valuable insights into booking trends, guest demographics, and channel performance provided by your channel manager.
  
  
• Identify patterns and trends.
  
  
• You can utilize these insights to improve your pricing strategy, marketing efforts, and resource allocation.

5. Maintaining Strong Channel Relationships:

• Proactively update booking platforms with any changes to your property, policies, or offerings.
  
  
• Respond to both positive and negative reviews on booking platforms. This helps to build trust and demonstrates responsiveness.
  
  
• Maintain a good relationship with key booking channels and explore opportunities for better commission rates.

By implementing these best practices and leveraging the power of channel managers, hotels can:

• Increase direct and indirect bookings.
  
  
• Maximize revenue and profitability.
  
  
• Enhance guest experience through a seamless booking process.
  
  
• Gain valuable data to make informed business decisions.

10 Best Channel Managers for Hotels 2024

• GraceSoft Easy Innkeeping: Integrated solution, potentially streamlining operations and reducing costs. User-friendly interface.
  
  
• SiteMinder: Extensive channel network, complex for smaller properties.
  
  
• Cloudbeds: Integrated PMS, potentially less cost-effective for standalone channel management.
  
  
• RateGain: Strong revenue management features, requires additional training for advanced functionalities.
  
  
• Profitroom: User-friendly interface, lacks advanced features compared to some competitors.
  
  
• eviivo: Strong in vacation rental connections, may not be ideal for complex hotel inventory.
  
  
• Hotelogix: Two-way distribution system, potentially limited channel integrations.
  
  
• innRoad: Good for global exposure, may lack robust features and support.
  
  
• HotelRunner: User-friendly, may not scale well for high-volume properties.
  
  
• Sirvoy: Budget-friendly, limited channels and features.

Elevate Your Hotel Business with GraceSoft's Channel Manager

The hospitality industry relies on a strong online presence. However, managing multiple channels can be overwhelming. GraceSoft Easy Innkeeping's channel manager revolutionizes your distribution strategy and helps you unlock new revenue streams.

• With GraceSoft, you can effortlessly list your hotel on numerous OTAs, social media platforms, and your website, all from a single, user-friendly dashboard.
  
  
• Real-time automation ensures flawless inventory synchronization across all channels and your PMS, eliminating the risk of overbooking.
  
  
• Maximize your hotel's global visibility and attract a wider audience by seamlessly integrating with leading booking platforms such as Booking.com, Airbnb, Expedia, and Google.
  
  

“We've been in business as a gulf resort for 30 years. Starting small with a Nano gulf course, we had no technology issues. However, as we expanded to 18 hotels and 14 suites INN, we needed assistance. That's when we found Easy Innkeeping. From the start, they lived up to their name, making reservation management easy. They even helped us handle multiple meeting rooms and integrated our RV Campground reservations into their affordable solution. I highly recommend Easy Innkeeping for its personal touch, dependability, and affordability.” - Matthew Nail, Quail Creek Resort