Understanding channel managers for independent properties

As an independent property owner or manager, you might think your property has little in common with large chain hotels. However, when it comes to marketing and selling your rooms, you share a crucial need: an effective distribution network. This network is key to increasing occupancy and brand awareness for your property.

But how do you manage this network efficiently? That's where a channel manager comes in. Let's explore what a channel manager is, how it works, and why it's essential for your independent hotel.

What is a channel manager?

Starting with the obvious, it is not a remote control as the image on this article hints at. A channel manager is a cloud-based tool that synchronizes your booking information across all your partnered platforms. It acts as a central hub, connecting your property management system (PMS) with third-party booking partners, also known as online travel agencies (OTAs).

For example, if your rooms sell out for a particular date, a channel manager instantly notifies all your connected travel sites (like Airbnb, Expedia, and Booking.com) to remove availability for those dates. This real-time synchronization helps prevent overbooking and ensures consistent information across all platforms.

How does a channel manager work?

Think of a channel manager as a two-way street between your PMS and OTAs. It ensures that any changes to your inventory or rates are accurately reflected on all booking sites in real-time.

Let's say a popular event is announced in your area, and you decide to raise your room rates for that weekend. As soon as you set the new premium rate in your PMS, the channel manager automatically syncs that information across your entire distribution network. This ensures that any potential guest searching for your property online sees consistent, accurate information about your rates.

Benefits of using a channel manager

1. Time-saving

Manual updates of availability and rates across multiple platforms can be overwhelming and time-consuming. A channel manager automates this process, allowing you to update information in one place and have it reflected everywhere instantly. This frees up your time to focus on other aspects of your business and improve guest experiences.

2. Reduced risk of overbooking

One of the most embarrassing situations for a hotel owner is having to tell a guest their room has been double-booked. A channel manager virtually eliminates this risk by ensuring your availability is always up-to-date across all platforms.

3. Expanded marketing reach

While OTAs charge commissions, they also act as a powerful marketing tool. Many travelers use these platforms as search engines to discover new properties. By connecting to multiple OTAs, metasearch engines, and global distribution systems (GDS), a channel manager expands your hotel's reach and increases booking opportunities.

4. Real-time rate management

If you use yield management automation for your rates, a good channel manager will ensure these changes are reflected across all platforms immediately. This prevents situations where your room rates might increase on your booking engine due to low inventory but remain unchanged on OTAs.

5. Increased efficiency and accuracy

Centralizing and automating channel management means you won't need to log in to the extranet of each OTA one by one to update prices and inventory. You can avoid human mistakes by automating recurring tasks, making your business much more efficient.

6. Occupancy growth

When you use a channel manager, you get the opportunity to broaden your hotel's visibility. Your property can reach more businesses and both domestic and international travelers. This increases the chance of rooms getting booked by up to 10% or more.

7. Enhanced reporting & analytics

Modern channel managers offer great reporting tools that give insights into booking trends, channel performance, and revenue distribution. These analytics permit hoteliers to work on their strategies, optimize pricing, and tailor marketing efforts for better returns.

Choosing the right channel manager

When selecting a channel manager for your independent hotel, consider the following factors:

1. Compatibility: Choose a channel manager that integrates seamlessly with your existing PMS.

2. OTA connections: Ensure it connects with the most popular OTAs in your market.

3. Customization: Look for options that allow you to input occupancy restrictions and minimum night requirements.

4. Support: Opt for a provider that offers dedicated support for when you need assistance.

5. Real-time synchronization: Ensure the channel manager updates inventory and rates across all channels instantly.

6. Centralized management: Look for a user-friendly dashboard that allows you to manage all your distribution channels in one place.

Maximizing the benefits of your channel manager

To get the most out of your channel manager:

1. Connect to multiple channels: Aim to connect to more than five channels to maximize your online visibility.

2. Analyze performance: Generate and analyze performance reports such as channel mix to understand which platforms are driving the most bookings.

3. Integrate with your booking engine: Seamlessly manage your direct bookings alongside third-party bookings.

4. Maintain rate parity: Ensure consistent pricing across all channels to build trust with guests.

5. Regularly review and adjust: Keep an eye on market behavior and your competitors to optimize your distribution strategy.

The impact on independent properties

For independent properties, a channel manager can be a game-changer. It levels the playing field, allowing independent properties to compete with larger chains by increasing their online visibility and streamlining their operations.

The real-time functionality of channel manager software means that a room becomes available everywhere online as soon as it's made available in your Property Management System. This is particularly valuable for last-minute cancellations, allowing you to quickly resell rooms and maximize occupancy.

Conclusion

A channel manager is an invaluable tool for independent hotels looking to streamline their operations and maximize their online presence. By automating the distribution of your inventory and rates across multiple platforms, you can save time, reduce errors, and potentially increase your bookings.

While it may seem like an additional expense, the benefits of using a channel manager often outweigh the costs. It allows you to compete more effectively with larger hotels and ensures your property is visible to a wider audience of potential guests.

Remember, in today's digital age, being present on multiple platforms is crucial. A channel manager makes this presence manageable and efficient, allowing you to focus on what you do best - providing exceptional experiences for your guests.

See it in action: Woodland Park Manor

To see a real-world example of how a channel manager can transform an independent hotel's operations, check out our case study on Woodland Park Manor. This video showcases how implementing a channel manager helped streamline their distribution process, eliminated OTA related headaches, and improve overall efficiency.