Distribution Channel in the Hotel Industry
In the Hotel Industry, a Distribution Channel refers to a chain of intermediaries involved in getting the product, in this case, a hotel room or service from the Hotelier to the customer. This can be done via a number of platforms through the Hotelier can sell hotel rooms. Possible methods include Booking Engines, Global Distribution Systems, Travel Management Companies, Tour Operators, Online Travel Agents (OTAs), Retail Travel Agents or Online Websites.
Using a variety of channels allows the Hotel owner to create a strategy that will drive bookings and positively contribute to revenue.
Types of Hotel Distribution Channels
There are various types of channels your hotel can use to reach its desired audience.
Direct channels include Hotelier’swebsite, phone, or social media. It’s important that the Hotel Owner has a website with the provision of direct booking and the website must have an in built hotel booking engine. Its important to note that Direct Bookings are the most profitable as the Hotekiers can avoid paying commission to third parties.
These include Tour operators, Online Travel Agencies (OTAs), wholesalers, tour operators etc.
Online Travel Agencies and Metasearch Engines invest in advertising with the commission hotels pay them. Thus, they have the ability to target a wider audience.
Offline is becoming less significant due to digitization . It basically includes phone, direct email, offline advertising, and walk-ins.
What is Distribution Strategy?
Channel Distribution Strategy helps in creating a method for selling hotel rooms, which Hoteliers determine by analyzing the costs of each distribution channel for selling hotel rooms. Finding and choosing the right distribution channel that are the most cost-effective ones at high-demand times will help Hoteliers determine when to sell rooms and through which channels to improve profits.
How can Booking Master’s Distribution Channel Manager help you in generating more revenue?
Booking Master’s Distribution Channel Manager can help you in managing each distribution channel. This can involve managing your rates and booking restrictions, ensuring your hotel’s inventory is continually updated across all channels, etc. An effective hotel channel management strategy is imperative for optimizing sales and maximizing revenue. Booking Master’s Distribution Channel Manager is a technology solution that helps hoteliers simultaneously manage their inventory, and room rates and maximize the room sales across multiple platforms such as Booking.com, Agoda, Expedia, Trip Advisor, and so on. This is more effective than manually updating each booking channel. In this way, hotel owners can invest their valuable time in more important tasks such as Hotel Marketing, Client Engagement, and on-site services.
Key Features of Booking Master’s Channel Manager Software
- A centralized view of all channels.
- Automated sharing of information about new bookings across numerous sales channels.
- Interface with the Hotel’s Booking Engine to prevent overbookings.
- An always-Updated Portal View.
- Real-Time Inventory Adjustments.
- Available on Cloud.
- Pooled Inventory Method: The Distribution will always show the maximum number of available rooms on all online channels without risking double bookings.
[Note:When a hotel has multiple distribution channels and enlists the same room across those various channels, there is a possibility that the same room gets booked by multiple channels.]
- It provides analytics and reporting: Reports such as Reservation Earnings, Booking Volume, and Detailed Data on which Online Travel Agency booked the reservation helps Hoteliers in making informed decisions when marketing to future guests.
- It can push rates and inventory across all channels.
- Customizes and sets room rates, plans, availability, and restriction.
- Integrates with new booking sites to grow sales.
- Allows hotels to customize their listings on OTAs.
- Allows hotels to easily set up automated rate rules, such as discounts, early bird discounts, and last-minute discounts.
- Automatically sends out booking confirmations.
- Sends out automated cancellation notifications to guests.
- Allows hotels to easily offer room upgrades to guests.
Benefits of using Booking Master’s Channel Manager
- Helps in reducinglabour costs.
- Saves substantial time on general administration.
- Helps in consolidating selling rates of rooms/services so that Hoteliers don’t miss out on potential bookings.
- Helps avoid errors with names, dates, occupancy, check-in times, room type, etcthat can easily occur.
- Customizationof listings on OTAshelps hotels better promote their brand and increases their visibility.
- Helps hotels maximize their revenue by offering discounts to guests.
- Room upgrades to guests, help inincreasing revenue.
- Helps hotels optimize their pricing strategy, thereby maximizing their revenue.
- Reduces the chance of missed opportunities as the automated distribution system gets updated in real-time if a reservation gets cancelled and another guest is searching for travel at the same time.
- Automated reports, help in making data-driven decisions.
- Enhanced transparency and up-to-date availability solve human error issues, such as over-booking.
- Key data and metrics help hotel owners in identifying notable trends.
- Improve hotel visibility, potentially increasing demand, occupancy rates, and the amount that can be charged.
- Properties can join more distribution channels which are critical in the low season.
- Opens up the opportunity in niche marketplaces.
- Helps improve revenue and business performance.