Hotel channel manager: the key to success in the hotel industry?
PMS, CRM, channel manager… you never thought you’d need to be a software engineer to run a hotel. But long gone are the days when a nice location, a diary and a pen were enough. Today, you need the Internet to make your business profitable. And with software for efficient management.
But don’t worry! Most of these tools are designed for ease of use.
The real question is whether you really need one. What can a hotel channel manager do for you? What’s it for? Is it worth the investment? How do you use it?
Need answers? This article explains it all…
Can a hotel survive without an OTA?
Let’s start with an explanation that, at first glance, seems rather far removed from the hotel channel manager. You’ll see that a good understanding of the room distribution system is essential.
What is an OTA?
An online travel agency is a platform for searching, comparing and booking travel services. It’s a platform for researching, comparing and booking travel services. You can buy airline tickets, book hotel rooms or rent cars, often at competitive rates.
You’re probably familiar with some of the major players, such as Booking.com and Expedia.
These OTAs ensure your hotels’ visibility on the web. They’re your global showcase. Of course, this usually comes at a cost: a commission on every reservation you make.
You can read in our blog :
But can you afford to make this saving?
Making money without online travel agencies
A hotel can be profitable without depending on OTAs.
In this case, you need an extremely solid marketing strategy. And a strong brand.
You can invest in your own booking website to encourage direct bookings. And social network marketing, word-of-mouth and local partnerships then play a key role in attracting customers.
By cultivating a niche clientele, you can also succeed in developing a loyal customer base that is less dependent on mass booking channels.
With the right communication, you can indeed manage to stand out from the crowd. But this too comes at a price! And often a much higher one.
International visibility through OTAs
Although the covid-19 pandemic has tended to reduce OTAs’ share of hotel bookings in Europe, they still accounted for 28.8% in 2021.
In other words, more than one hotel room in 4 is booked this way. Enough to improve your occupancy rate during off-peak periods!
These online platforms are particularly interesting if you want to promote your establishment. And customer reviews can be a considerable asset when it comes to choosing a hotel.
These online travel agencies offer invaluable visibility and reach. And they make it easier for hotels to reach a wide audience worldwide. So they’ve become indispensable today for optimizing your sales. Don’t miss out!
And when it comes to managing these different booking sources, a channel manager is a particularly practical asset. But is it compulsory?
What is a hotel channel manager?
Let’s start with a quick English lesson to understand the principle behind this term.
“Channel” means “channel”. And “manager” means “to manage”. A channel manager is therefore a channel manager. A tool that enables you to supervise, synchronize and track in real time bookings made from different sources.
These sources or channels include OTAs, of course. But also metasearch engines like Google. Or your website.
This type of software is relevant for all short-term rentals.
And some are specifically dedicated to hotels. These are, you guessed it, hotel channel managers.
All the benefits of a hotel channel manager
These hotel-specific channel managers offer many advantages.
Channel manager in the hotel industry: benefits for your organization
- Centralized reservations management
A channel manager allows you to manage all reservations from a single location, simplifying the management process for each online reservation platform.
- Automatic availability updates
Without real-time updates, overbooking and problems with unhappy customers would be a daily occurrence.
When a reservation is made on one channel, the channel manager automatically updates availability on all other connected channels.
- Time saving
Manually managing multiple booking channels can be complicated and time-consuming. A channel manager automates this process. You have more time for other operational tasks.
- Preventing human error
Manual management of availability and rates across multiple platforms increases the risk of errors. With a channel manager, you can save yourself a lot of trouble!
Boost your room reservations with a channel manager
- Increased visibility
By connecting your hotel to several OTAs, a channel manager increases the visibility of your establishment. This can lead to increased bookings. Cloudbeds channel manager give acces to 300 OTAS
- Reports and analyses
Yes, this channel manager isn’t just for booking. Many channel managers provide detailed analysis and reporting. This enables you to better understand booking trends and optimize your pricing and distribution strategy.
Channel managers also help monitor online reviews. So you can respond quickly to customer concerns.
- Dynamic tariff management
Some channel managers offer dynamic pricing features. Room rates can be adjusted automatically according to various factors, such as changes in demand, local events, or even weather conditions.
- Better sales management
By maximizing room distribution, using effective pricing strategies and providing useful marketing analysis, a channel manager helps optimize your hotel’s revenues.
Create an operational system to manage your hotel
Many channel managers integrate easily with other hotel systems such as Property Management Systems (PMS), Customer Relationship Management (CRM) and Revenue Management systems.
If you’re not already familiar with these acronyms, you soon won’t be.
The PMS is your hotel’s brain. When a guest books a room, the PMS records that booking and updates room availability. It also helps manage guest check-in, payments, billing, and even room maintenance.
CRM, on the other hand, focuses on customers. It keeps track of their previous visits, preferences and opinions. You can use this information to personalize their experience the next time they visit.
In any case, these tools are very practical. And coupled with a channel manager, they form a highly efficient system for your management. Everything runs more smoothly.
And the customer experience is optimized.
So, is it absolutely necessary to implement channel management software to optimize your hotel business?
Can you do without a channel manager for your hotel?
As we’ve seen, it’s perfectly possible to do without an OTA.
And without an online booking platform, you don’t need a channel manager for your establishment.
You can also choose to use just one or two Online Travel Agencies, such as Booking.com. In this case, chances are you’ll be able to manage your bookings manually. But is your staff qualified 24 hours a day to make these manual entries?
Without a channel manager, you’ll have to update availability on every online booking platform. This is a time-consuming and error-prone process.
And what happens if a customer books your last room? And someone else books the same room simultaneously on another site?
The customer reviews that might result from such a situation would certainly have very negative consequences for your business.
The only solution to this potentially catastrophic problem is a channel manager. This tool is indispensable for multiplying sales through OTAs, Google and your own website. But without the risk of overbooking.
You’d be wrong not to.
Choosing the right channel manager for your hotel
Once you’ve decided to adopt this sales management tool, you still need to find the one that’s right for you. And there are several criteria to take into account.
Compatibility with existing systems
Make sure the channel manager you’re considering is compatible with the other systems you use, such as your PMS or CRM.
Your new tool should also integrate easily with your website for centralized reservation management.
The number and variety of distribution channels
A good channel manager should offer a wide range of connections to the main booking channels. As well as to niche channels specific to your market. The more channels you have available, the greater the visibility of your establishment.
Ease of use and good customer support
The user interface must be intuitive. To get an idea, take a look at the videos offered by these channel manager sales sites. Alternatively, you can usually take advantage of a free trial.
Responsive, competent customer support is also essential to quickly resolve technical problems and help you optimize the use of the software.
Advanced features
Check out the options. Some are very useful. Dynamic pricing in particular. But also the ability to compare your room rates with those of your competitors. Or detailed reports and analyses.
These tools can help you adjust your strategies and improve your sales.
Safety
Data security is paramount. Make sure the channel manager complies with data security standards, such as PCI DSS and RGPD, to protect your customers’ sensitive information.
Every payment must be automated and secure.
Price list
Evaluate the cost-benefit ratio. Some channel managers may offer performance-based rates or fixed-price models. Consider what’s most cost-effective for your hotel, based on its size and volume of bookings.
Feedback and reputation
The experience of other users gives you valuable information about the reliability and efficiency of the tool. Read the reviews and you’ll know which solution to choose.
Compare them all. And analyze them according to your own needs.
Once you’ve made your choice, just follow the guide. You’ll see that these reservation management solutions are very easy to use.
As you can see, adopting an effective channel manager is much more than just a gadget. It’s a necessity!
This versatile system doesn’t just synchronize your schedule and manage bookings on various platforms. It also optimizes the entire payment process and helps improve your customers’ overall experience.
Investing in a channel manager is a decisive step towards making yourself visible in the competitive world of hotels. You’ll quickly see an excellent return on your investment.
