Today’s technology allows hotels to offer their accommodations through different channels. But how can you get them all to work in harmony and avoid overbooking problems? Well, the answer is simple: with a channel manager. Learn here everything this tool can do for your hotel management.
What is a channel manager and what is it used for?
A channel manager is a software designed to manage channels used to offer hotel services online. It centralizes and manages their availability. Its main attribute is that it does so automatically: it does not require manual updates.
This tool thus presents the inventory status of a property in real time, regardless of the variety of channels through which a guest can book a room.
Today, a channel manager can connect with any of these hotel services distribution channels:
- Online travel agencies such as Expedia, Booking, hostelworld.
- Traditional travel agencies using GDS systems .
- Metasearch channels with booking functionality, such as TripAdvisor, for example.
- Rental platforms like AirBnB.
- Hotel’s own website and booking engine.
What is it for?
Essentially, this tool increases occupancy at your hotel and boosts your online sales. It also saves you time, prevents information consistency errors between channels, and helps you implement your pricing strategy across your distribution channels.
Currently, it also supports the management of complementary services to yours, such as car rentals or the purchase of tourist packages.
Now that we’ve reviewed what a channel manager is , let’s delve into its benefits as such.
Why use a channel manager?
What this tool can do certainly sounds beneficial. But if you are wondering in detail why using a channel manager can change the management of your hotel, we have the answers for you.
Real-time connectivity and consolidated inventory
A channel manager gathers all your hotel’s inventory and keeps it updated in real time on all the channels you manage. This way, you avoid the risk of overbooking a room.
Visibility
A tool that centralizes the management of multiple channels gives you the ability to be present on a greater number of them. Think about it: if you had to manually update reservations and prices on each channel you used, you would most likely not venture into many. Thus, a channel manager makes it easier for you to decide to offer your services on more channels and thus increase your visibility and potential reservations.
Optimization
This tool minimizes human errors in the management of reservations and inventory of rooms and other services. By doing everything through automation, the risks of incorrect, incomplete or inconsistent data across all distribution channels are reduced.
Useful information
Additionally, the best managers analyze the data they manage and produce useful reports for decision-making regarding pricing strategy and inventory distribution. They reveal ways to make the most of the channels used.
Automated pricing strategy
As we mentioned, a suitable channel manager allows you to automatically implement your hotel’s pricing strategy. For example, it can:
- Set sales closures when a channel reaches its established goal.
- Determine the minimum number of days for a reservation.
- Offer discounted prices based on user behavior on the channel.
Integration with other tools
Strong channel managers can work in conjunction with a hotel’s other tools. These include the Property Management System (PMS), Revenue Management System (RMS) and Central Reservation System (CRS).
Considerations for choosing a channel manager
Finally, there are several aspects you need to take into account when choosing the manager that best suits your business. These include:
- Update speed.
- Ability to integrate with your other systems, especially the PMS.
- Ease of use of its interface.
- Report generation.
- Security system for effective data protection.
- Learning curve to use it to its full potential.
Also, keep these questions in mind when looking for the most suitable manager for your needs:
- Does this option support the most important channels for my hotel and my strategy?
- What is the number of channels, inventory and days that the manager can manage simultaneously?
- Does this manager produce the reports I need to make informed and timely decisions at my hotel?
This is why a channel manager is a key tool in the efficient and solid management of a hotel. Its attributes contribute to generating a positive experience for guests when booking and to optimizing the time and attention of your hotel’s staff.
