March 26, 2020

5 Amazing Advantages of Channel Manager to Hotels that every Hotelier need to Know

The emergence of the internet has caused direct bookings and the use of travel agents to decline while booking channels steadily rise in numbers.

A hotelier only ever wants to sell the greatest number of rooms, at the most lucrative price point that’s why the obvious thing to do to increase sales would be to make a hotel’s inventory available at the most sought-after digital marketplace. Hoteliers place their rooms for rent on online platforms such as OTAs, metasearch engines, and their brand website to ensure that their customers can find them wherever they go to make their reservations. The ideal tool to help hotels take advantage of today’s many sales channels while avoiding their pitfalls is a channel manager.

What is a Channel Manager?

A channel manager is a tool that will allow you to sell all your rooms on all your connected booking sites at the same time. It will automatically update your availability in real-time on all sites when a booking is made when you close a room to sale, or when you want to make bulk changes to your inventory.

A Channel Manager integrates with your hotel’s PMS in managing your hotel rooms and distributing across all channels simultaneously. It acts as a ‘middle software’ between your PMS and channels you sell your room on, managing real-time availability and guests’ data. They pull from a central pool of inventory that maps to existing rooms to provide real-time availability updates from/to the PMS. Each new reservation is delivered right into the PMS, without any manual intervention.


Benefits of Channel Manager

  • Increase Hotel Revenue: A channel manager displays live rates and availability across all your channels at the same time, and updates automatically you can accept bookings faster and almost eliminate the chance of double bookings. In addition, the data you can analyze from your channel manager can ensure your rates are always optimized and you’re using the most lucrative channels.
  • Reduce the risk of overbooking: One of the undeniable advantages of Channel Manager is the opportunity to reduce the risk of overbooking to the minimum, thanks to the access to sales results in all online channels and the real-time response. The sales offer includes the actual pool of rooms which is automatically divided between individual sales channels, thus reducing the risk of overbooking and significantly simplifying the management of prices and availability in each channel.
  • Save Time: A Channel Manager handles your hotel’s inventory in a centralized way from a single extranet, so you may use your time for more strategic and productive tasks.
  • Enhanced brand recognition: Brand recognition is crucial in the hotel industry, it encourages repeat bookings and positive word of mouth. Channel manager can allow you to advertise your rooms on channels that attract customers who would never have otherwise heard of your hotel, increasing both your brand awareness and brand recognition.
  • Boost Direct Bookings: It may seem illogical but it’s true! Many travelers will discover your property first on an OTA, but they want to learn more about you before they book. Often they will visit your website and then decide to book their stay. So you get a direct sale, but it was born on the OTA site – resulting in greater profit for your hotel. This is known as the billboard effect.


Conclusion

With a Channel Manager that works together with PMS, you’re able to manage guests’ bookings, your rooms’ real-time availability and prices, and your guests’ data simultaneously.  A Channel Manager is, therefore, a key component of the room distribution strategy that your hotel shouldn’t ignore.

If you are currently on the hunt for the perfect Channel Manager for your hotel, then Horeca Cloud + Channel Manager integration is your best solution! Remember, the key to maximizing your hotel revenues is to have the right channels to distribute your rooms and most importantly to manage them correctly!