Hotel Channel Management Software: Main Providers and How to Choose One for Your Business

Checking in with a pen and a notebook is a distant memory for the hotel industry. Nowadays hospitality brands clearly understand they need to focus on online sales across numerous channels, including their own customer-facing websites. The modern traveller is becoming increasingly more tech-savvy and is relying on digital distribution outlets to arrange hotel stays.

However, putting together relevant hotel listings across online distribution channels requires plenty of tiresome manual work. That is where channel managers come to the rescue, making the life of hoteliers increasingly more stress-free.

Why channel management software is so important and useful for hotels?

A channel manager is the type of distribution automation software that helps sell hotel inventory across a multitude of online sales channels – GDSs, OTAs, hotel booking portals, etc. In addition, it ensures instant updates of prices and room availability within hotel inventories. This way hospitality brands can list their offerings across multiple digital outlets simultaneously and demonstrate valid and actual information on pricing and occupancy.

Channel management solutions usually come as standalone systems or can be an integral part of a property management system (PMS) or a central reservation system (CRS) commonly used by individual hotels or larger hotel chains / brands.

Overall, channel managers are so widely used nowadays as they allow property owners to streamline 3 of the key recurrent activities: distribution management, securing inventory consistency across channels and provision of valuable analytical data on sales activity. Let us dig deeper and break this down in more detail.

Distribution management

Using multiple channels is extremely beneficial for hospitality brands. This tactic increases online visibility and occupancy, which leads to increased sales and more profits. At the same time, it is crucial to work out the number and mix of sales channels that fits the specific brand.

As for the types of hotel distribution channels commonly used nowadays, let us take a look at the most prominent ones used in modern hospitality industry.

Online Travel Agencies (OTAs)

Online Travel Agencies (OTAs) are online platforms that help tourists search & book a variety of travel services. These include not only hotels, but also flights, transfers, cars rental services and more. Some of the biggest names among OTAs are Booking.com, Expedia, HotelsCombined, to name but a few. It is safe to say that OTAs make up for the key hotel distribution channel bringing a large portion of revenue for hospitality businesses.

Vacation rental resources

Vacation rental portals – the likes of Airbnb or HomeAway, – are also becoming increasingly more important in hospitality distribution. Their operational workflow is similar to OTAs in many ways. The difference is that these resources normally charge guests and focus on listing mostly short-term rental options for private properties. In addition, vacation rental resources also list an abundance of shared-space accommodation options.

Global Distribution Systems (GDSs)

Global Distribution Systems (GDSs) represent large networks on a global scale connecting travel agencies and tourism service providers. Sabre, Amadeus and Travelport are the key names among them. They aggregate information regarding rates, inventory and schedules from providers and distribute access for travel agencies to book services. The main advantages of these systems is their global outreach and extensive opportunities of attracting corporate customers.

Metasearch engines

Metasearch engines help properties gain more visibility properties among the travellers making general search queries. TripAdvisor, Kayak, HotelsCombined and WeGo are some of the biggest among them. These engines list numerous accommodation options based on search conditions and then redirect users to OTA portals or hotel websites to complete bookings.

Hotel wholesalers

Hotel wholesalers (commonly referred to as ‘bedbanks’) are hotel inventory resellers. Their business model is based on the margin they earn of the surplus added to the discounted bulk prices they obtain from hospitality brands.

Proprietary websites and social network accounts

Proprietary websites and social network accounts of hotels represent the main channels enabling direct room bookings. Direct booking resources normally come with a built-in booking engine allwoing to process reservations on the spot. There are also numerous tools available that increase direct channel productivity. Mobile-friendly layouts, online ads and SEO optimization add up significantly to the overall traffic and booking volumes.

Generally, a channel manager is an indispensable instrument required to manage various distribution channels and maintain a two-way connection between them and hotel property management systems. This type of solution helps property owners simultaneously distribute their rooms across various channels, update availability data and receive updates on implemented reservations instantly as well.

Besides instant connection to various channels, another crucial aspect is having your descriptive hotel content up-to-date and relevant across all of them. Whenever your hotel offering changes or there’s been a rebranding, all changes have to be properly reflected across online distribution resources you use most.

Ensuring consistency across multiple channels

Travellers can book rooms at any moment and via any available channel which brings about the need to keep rates and availability data real and actual at all times. Channel managers is a solution to this issue delivered through online automation. Whenever a room is booked, these systems push updated availability data to all the channels involved to make sure the given room is not available for booking anymore.

Thanks to this know-how, property owners have solved the overbooking problem – the issue of the same room getting booked several times for the same dates by different guests. Another benefit of hotel channel management system is its capacity to upkeep rate consistency across channels. This, in particular, has helped to mediate the long-standing rates rivalry between OTAs and hotels. To find out more about the rate parity issue in hospitality, please, read more here.

Generating analytical data and reporting

Channel management solutions in the hotel industry provide extensive analytical data and reporting capabilities. They aggregate and maintain booking data across the available channels, process and display it as informative tables, charts, diagrams and in other formats. As a result hotel owners can adjust their distribution strategy based on detailed insights covering occupancy, completed bookings, revenues and other parameters for the chosen period of time. Eventually, this functionality saves valuable time which can be invested into customer relations and staff management, thus improving the comfort level and service quality.

Aspects to consider while choosing a channel manager

Before we proceed to evaluate the hotel channel management solutions currently existing on the market, let us outline the most important criteria to be considered when choosing the software for your business.

Find a solution with the most appropriate choice of available channels

This is the first and most obvious aspect to be considered. It derives from the key purpose of channel management software – increasing your online visibility for the widest and most relevant audience. For this purpose one must choose a solution that is just optimal for the given property and the experience it provides to travellers. Besides that, the right channel management solution must be capable of establishing reliable connections to those channels that are popular with the target audience. For example, in case the goal is to attract travellers from China, your solution must connect to the key channels in this country – the likes of Ctrip or Fliggy. But of course the list of connections should not limit to just some niche resources. It should include global OTAs (Booking.com or Expedia) for a wider outreach.

Make sure 2-way XML connections are available

One of the key requirements for modern channel managers is their capacity to establish fast connections between a hotel PMS system, booking engine and the necessary third-party channels. The data exchange is usually implemented using XML data format. The two-way connectivity here means the continuous exchange of information on rates, bookings, availability or restrictions in between the mentioned systems. This way property owners can avoid cases of overbooking and pricing inconsistencies. The speed of data updates plays a crucial role here. The higher the speed of connection, the lower the risks of data discrepancies and invalid bookings. More to that, fast and timely updates and data exchange ensure higher rankings for hotels on popular OTAs and other important channels.

In most cases hotel systems and apps are connected via APIs. However, sometimes the connection is executed using iCalendar (iCal) – the format implemented for sharing schedules and calendar data. It has a lot of limitations compared to APIs, but it becomes quite useful in cases when the API connectivity can’t be applied or there are not too many properties that are qualified for some specific channels.

Use PMS/CRS integration

If you want inventory availability updated in real-time, the channel manager must be compatible with your PMS or CRS. What does it mean? Travellers see a certain number of vacant rooms, their peculiarities, and prices, and you can avoid mistakes in reservations, but your software must be seamlessly integrated with your system.

Also, you need to integrate your system with your revenue management system (RMS) to have control over the rates. It is necessary to manage your revenue.

Choose pooled inventory

It is a smart tactic to look for channels which provide a centralised inventory management location. Pooled inventory enables simultaneous distribution of available rooms across diverse channels, including own hotel websites, while removing duplicate booking and overbooking risks.

Consider centralised content management

Travellers want to know not only the number of beds and the prices of rooms. Nowadays they also want to receive information about interior design, kitchens, lavatories, sights, policies, etc. It is convenient for the property owner to have an opportunity to edit such information across all channels but it must integrate with other management systems of channels.

Such integration makes registration and contracting easier because it provides accurate synchronisation of actual proposals and seasonable photos across all channels. It helps property owners to manage content, save time and increase reservations.

Ensure appropriate analytics and reporting

Detailed and accurate analytics is crucial for proper business performance. That is why it is preferable to opt for a channel management solution which provides extensive functionality in this area. You will be able to develop a sound and productive distribution strategy only in case you will have analytical data at hand that provide a wholesome outlook on revenue stats per channel, booking figures, details on revenues earned within a specific period of time and other stats, if possible. The more, the better.

Provide sufficient security

Property booking workflows involve many sensitive data points – payment details, personal information and more. It is highly important for business and overall trust to provide maximum safety for such data.
Thus, it is very much recommended to inquire with the channel manager regarding compliance with the relevant security standards. The ones we’d specifically recommend to pay attention to are Payment Card Industry Data Security Standard (PCI DSS), General Data Protection Regulation (GDPR) and Strong Customer Authentication (SCA).

Selected standalone hotel channel management solutions worth considering

No matter what type and size categories your property belongs to, it’s always possible to find a solution that will meet your requirements and expectations. The choice on the market nowadays is very rich.
Many channel management solutions come as integral parts of various PMS or CRS systems. At the same time, there are companies providing channel managers as separate products. Let’s take a look at some of the most popular solutions in more detail.

SiteMinder: a complete solution for hotel chains

SiteMinder is a company offering multiple technology services and solutions to over 35 000 hotels worldwide. SiteMinder Channel Manager, one of the available solutions provided as part of the SiteMinder platform, is supplied to hotel chains and independently managed properties. It equips hospitality businesses with a two-way connection to over 400 channels (including online travel agencies, GDSs and wholesalers). Besides that, it has implemented connections to 300+ PMSs/CRSs.

This software runs on the pooled inventory model and enables hoteliers to handle management of graphics and textual content across various third-party websites. Yield and performance reports for each used channel are available via specially arranged dashboards. The channel manager also facilitates secure payments in multiple currencies. The payment processing is arranged in full compliance with PCI-DSS regulations and guidelines.

Cloudbeds Сhannel Manager: for niche marketplaces

Property owners from more than 135 countries choose Cloudbeds as their hospitality management software vendor. The company offers a cloud-based channel manager that can establish a two-way connection with more than 300 third-party websites (including metasearch platforms). It’s a module of Cloudbeds property management suite and can be used separately or alongside the PMS. While the software is designed for small and medium independent properties, hotel groups can also use it: Developers add new functions to make inventory distribution more convenient for them.

Cloudbeds Channel Manager Interface

Cloudbeds Channel Manager connects with both popular OTAs and niche marketplaces for bed and breakfasts, hostels, hotels, vacation rentals, guest houses, ranches, campgrounds, inns, etc. Every listed channel comes with brief info on property types and locations, making it easier for users to choose necessary markets. Property owners can set and quickly update rates specifically for each channel and convert them into various currencies. Pricing is available on demand and depends on the property location and number of rooms, as well as features provided.

eZee Centrix Hotel Channel Manager: a rich functional set for various properties

This channel management solutions suits for both small and larger properties (with over 1000 rooms). It provides inventory distribution options across more than 130 online channels and is connected to 20 third-party PMSs and hotel management solutions – the likes of Absolute, FrontDesk or eZee.

Automatic price and availability updates across all channels increase reservation volumes. The channel manager can process booking details and also handles OTA vouchers.

It comes in the form of SaaS, Web or cloud-based solutions. The quite handy mobile version eliminates the need for employees to be tied to a stationary workplace. They can obtain channel revenue breakdowns and other valuable insights. Transaction and inventory data is secure thanks to 3 types of activity logs.

With the Rate Shopper Tool, the channel manager can monitor the rates of competitors, analyze offers from them on partner channels, and forecast prices for the next 30 days. The function costs $4 a month.

Pricing plans depend on the type of property, rooms, and possible features.

STAAH: for both small properties and hotel chains

STAAH is used in more than 10 000 hotels from 90 countries, offering connection to over 200 channels. There are two product versions:

• Instant Channel Manager allows updated rates and availability instantly with the help of a dashboard. Overbooking is decreased thanks to inventory distribution via a centralized data pool. Analytical tools help hoteliers carefully monitor their business performance. For example, they can track sales accross multiple channels and compare current results with with historical stats.
• MAX Channel Manager is used for hotel chains and incorporates revenue management features. For example, hoteliers can monitor market data for dynamic pricing almost every minute.

If a hotelier wants to compare rates of up to five competitors for seven days, he can also use the RateSTalk tool. The result will be presented in graphic forms.

It’s also possible to use STAAH Mobile App.

RezGain by RateGain

RezGain is available in over 120 countries and manages more than 250,000 properties. There are close to 1,500 integration options, including over 900 tour operators, GDSs, OTAs and wholesalers.

The benefits of this software include a recommendation tool, an automated mapping feature, easy channel setup, rate parity assurance, analytics, and good customer support in chat.

There is no mobile app but the system is running well on tablets and smartphones.

Other products

It’s impossible to write about all products as there are just too many of them existing. However, below are some of the honorable mentions:

• D-EDGE – a solutions popular across Europe, with connections to over 300 channels.
• Rentals United – a channel manager equipped with a booking engine, Guest Communication, Guest Planner and other tools. It was developed for vacation rentals and provides multiple integrations with metasearch sites, vacation rental listings, OTAs, etc.
• Octorate – a channel manager with multiple features, reasonably priced and with great customer support.
• Lodgable – software for vacation rental owners, with the core functionality offered for free.

Conclusion

Most definitely, the modern channel manager is one of the key pieces in a modern hospitality distribution strategy. Systems of this sort handle simultaneous management of reservation, availability, prices, guest data.

However, it is crucial to choose the solutions for your business with great care, making sure it fits your property type, size and available budget. One must also consider available integrations, the mix of channels, the quality of customer support and analytical capabilities. Besides, this solution of choose should integrate with your property management system and relevant third-party web-resources.