For a modern hotel that wants to grow, connectivity is a must. Managing day-to-day operations, updating availability and prices, and automating processes and inventory — here are the party makers of a reliable scaling of your business. For this, a channel manager is your ace in a sleeve. What features should your perfect channel manager have? Let’s start with the basics.
What’s a channel manager?
So what is this technology about? A channel manager is a solution that allows hotels to simultaneously distribute their room inventory and rates across multiple online sales channels. It ensures that availability and pricing are consistently updated across all platforms in real time, preventing overbookings and maximizing occupancy.
A channel manager is a tool that automates and streamlines managing a property’s inventory across OTAs and booking platforms. When hotels adopt a robust channel manager and booking engine, a beautiful picture paints itself easily. What kind of a picture?
Why do you need a channel management solution?
Well, let’s talk numbers. Hotel owners and managers see great improvements in revenue and efficiency. For instance, many properties report a 30% increase in revenue and time savings of around 20 hours per week previously spent on manual updating. In the long run, it’s strategic budget is saved for steady growth!
This boost can be attributed to several factors:
- Wider distribution reach, exposing the property to more potential guests.
- Dynamic pricing capabilities that allow for more competitive and profitable rates.
- Reduced overbookings, leading to improved guest satisfaction and reputation.
But what separates an average channel manager from an exceptional one? Let’s explore the five essential features that every hotel owner should look for when choosing a channel manager.
Read also: Robotics in Fintech: Revolutionizing Peer-to-Peer Payments via Digital Wallets
Seamless multi-platform integration
The cornerstone of any efficient channel manager is its ability to integrate seamlessly with a wide range of platforms. This isn’t just about connecting to the big players like Booking.com and Expedia; it’s about casting a wide net to capture every potential booking opportunity.
A robust channel manager should offer:
- Integration with major OTAs, metasearch engines, and GDS systems. For instance, SiteMinder connects to 400 distribution channels.
- Compatibility with niche and local booking platforms. For example, Hosthub connects to niche platforms like Canopy and Stars and Theatre Digs Booker.
- Seamless connection with your property management system. Or you can adopt a hybrid approach — Cloudbeds has its own PMS and integrates with many others.
- Integration with your direct booking engine, like RezGain which offers its own booking engine solution.
- Payment integrations through various channels. For instance, Octorate integrates with Nexi, Stripe, PayPal, and SysPay.
Why is this crucial? It’s simple: the more places your rooms are listed, the higher your chances of securing bookings. But it’s not just about quantity. A good channel manager ensures that your property is presented consistently across all platforms, maintaining your brand integrity and pricing strategy.
Real-time updates and synchronization
In hospitality, time is everything. Last minute business group trip? A whim for a retreat? A family gathering that suddenly took some friends on board? Real-time updates are not just a luxury; they’re a necessity. An effective channel manager should offer:
- Instant synchronization of availability across all connected platforms. Example of such a solution? STAAH offers real-time updates for 200+ channels.
- Real-time rate updates to maintain pricing parity. For instance, RateTiger provides a Room Rate API for dynamic pricing across channels.
- Immediate reflection of bookings in your PMS. As a shiny example, Cubilis integrates with over 50 PMS applications for instant updates.
This real-time capability is a must to prevent overbookings and ensure that your pricing strategy is consistently applied across all channels. It’s not just about avoiding the headache of double bookings. It’s about capitalizing on every opportunity to drive your revenue higher.
Automated inventory management
Your hotel is fully booked for a city festival. Due to a last-minute cancellation, a room becomes available. Manually updating inventory across all OTAs and metasearch? Too troublesome. Here, automation is a way out, so a quality channel manager should offer:
- Automated distribution of rooms across channels based on your set rules, which is instantly distributed in SiteMinder.
- Dynamic inventory allocation to maximize occupancy. What to look out for? Katanox offers instant automatic inventory replenishment.
- Automatic closure of sales channels when inventory is depleted. As an option, Cloudbeds provides automated syncing and room type mapping for optimal allocation.
- Automated pricing adjustments based on market demand. For example, Aiosell dynamically adjusts rates.
This level of automation frees up valuable time for you to focus on providing an exceptional guest experience without any distractions. No more late nights manually adjusting inventory across dozens of platforms!
User-friendly interface and mobile accessibility
So you bought a plan for a channel manager and it’s time to onboard your front desk team. And here’s a thing: an overly complicated solution leaves them helpless and might take weeks and months for them to get used to.
Even the best channel manager in the world is useless if it’s too complicated and ties your employees to their PC. The ability to manage your property from anywhere, at any time, is invaluable in today’s fast-paced hospitality industry. Whether you’re at your desk or on the move, you should be able to access real-time data and make critical decisions with ease.
Off the shelf or custom?
Your choice of channel management solution depends on your business size, niche, and scaling plans. For instance, some channel managers for vacation rentals offer specialized integrations for the unique needs of short-term rental properties. This focus can be a real benefit for property owners in the vacation rental space.
At coaxsoft.com, we understand hotels’ unique challenges in managing their online presence. Our hospitality technology expertise has led us to develop solutions that exceed the needs of modern hotel owners. With our experience, we integrate solutions seamlessly into your infrastructure and develop more than just tools; we drive partnerships that transform your business operations.
