Maximizing Profits: Tips for Selecting the Right Channel Management System for Your Independent Property

No hotelier needs to be convinced of the importance of listing their properties on multiple online platforms. In fact, the average independent hotel is listed on 5 to 7 different channels. Today’s guests demand instant availability and pricing, whether on Google, Online Travel Agents (OTAs) like Expedia, or your independent hotel’s own website. Yet, manually updating these details across the web can eat up hours per day. What’s more, inaccurate or out-of-date information on even one booking platform can lead to lost revenue and administrative headaches.

Enter the channel manager, a vital solution that automatically lists real-time pricing, availability, and other details across multiple channels, increasing visibility, occupancy rates, and, ultimately, profit. Channel managers can save hoteliers up to 4 hours a day in manual inventory management and increase revenue by 15 to 20%. 

While a channel manager is a must-have for any savvy, independent hotelier, selecting the right channel management partner can be daunting. Below are some key features you should look for. 

1 – Connectivity to Your Guests Wherever They Book

It’s crucial that any channel manager you consider is seamlessly connected with the key players in selling hotel inventory, including Global Distribution Systems (GDS) such as Amadeus, Sabre, and Travelport, and OTAs like Booking.com, Agoda, and Expedia. Ensuring your properties have correct availability and pricing on these platforms will help you reach a larger audience and maximize online visibility.

However, you’ll also want to prioritize channel managers with connections to channels that target your property’s preferred guests and their unique needs. For example, if your hotel sees many guests from China, you’ll want a channel manager that offers integrations with a variety of Chinese OTAs. If your accommodation offers an activity like golf, your channel manager should partner with platforms that cater to golf enthusiasts.

Pro Tip: The more connection options you have through your channel manager, the more opportunities you’ll have to grow visibility and revenue. Review the full list of connections offered by the vendor closely. 

2 – Dependable, Real-Time Inventory Updates Across Channels

Client-facing strategies to deal with overbooking and pricing discrepancies have become part of every independent hotel’s arsenal. But do they have to be?

A truly effective channel manager should minimize these issues with to-the-second inventory updates consistently being rolled out across all channels. However, in practice, some channel management providers have more efficient data transfer times than others. For this reason, choosing a channel manager with top-of-class update speeds is essential. Reliable, real-time synchronization will help avoid inaccurate pricing and availability and allow you to make immediate adjustments to capitalize on market demand or match competitor pricing, giving your hotel a competitive edge.

Pro Tip: Make sure you ask specific questions about the vendor’s transfer speeds.

3 – Smooth and Stress-Free Integration with Your Current Systems

It can be frustrating to allocate the time and effort to adopt a new technology solution only to discover it doesn’t fit with your hotel’s current processes.

Your ideal channel manager should seamlessly integrate with your existing property management system (PMS). A smooth partnership between the two will allow you to update inventory and rates instantly and retrieve reservations from different online channels. Automating the transfer of this type of data sharply reduces human error and reclaims hundreds of work hours.

The right channel manager can also be integrated with your central reservation system (CRS), letting you manage reservations from all distribution channels in one place, and your revenue management system (RMS), allowing you to optimize pricing strategies. By sharing data with the RMS, the channel manager can receive insights and recommendations on pricing adjustments based on market demand, competitor rates, and other factors. This integration empowers hoteliers to make informed decisions and maximize revenue.

Pro Tip: Ensure your channel manager links with your accounting and financial systems, letting you smoothly transfer bookings, payments, and invoices.

4 – Advanced Analytics to Help You Sell More

Evaluating reporting and analytics capabilities is fundamental before making the final decision. Your channel manager should track key metrics in real-time, including occupancy rates, revenue per available room (RevPAR), average daily rate (ADR), and bookings by channel, and report them to you in an easy-to-understand format.

Taking it one step further, a best-fit channel manager has reporting that can be tailored to your specific needs. For example, DerbySoft offers self-defined reporting templates and an email scheduler, where you can choose exactly which data is sent your way and when.

Comprehensive reporting that tracks your hotel’s performance is essential for making data-driven decisions about strategies to boost occupancy and revenue. This kind of reporting also helps you quickly identify and respond to booking trends.

Pro Tip: Choose a channel manager that offers advanced, customizable, real-time analytics and business intelligence tools. This will enable data-driven decision-making and strategic adjustments, ultimately boosting revenue and maximizing occupancy rates.

5 – Robust Data Security for Guest Peace-of-Mind

One way to lose guest confidence is through a cybersecurity breach. That’s why it’s crucial to have a channel manager who can protect your independent hotel’s confidential information. 

The most important security feature is perhaps the encryption techniques used to protect your data during transmission and storage. Confidential data like guest information and financial records should be encrypted using advanced algorithms, which make it extremely difficult for hackers to access. What’s more, channel manager systems should have strict access controls so that data is only available to authorized personnel within your hotel.

Another critical feature of a trustworthy channel manager is regular, rigorous security audits and vulnerability assessments. These are conducted by third-party experts to fix weaknesses and make system improvements. Firewalls block unauthorized access attempts, and intrusion detection systems, which alert you of potential security breaches, are also vital. Additionally, compliance with data protection regulations such as General Data Protection Regulation (GDPR) is a must-have.

Finally, you want to ensure your hotel’s protection in an emergency. With a channel manager that regularly backs up your hotel’s data, you’ll lose minimal information if any systems fail. Additionally, your chosen software should have a disaster recovery mechanism, ensuring your hotel can quickly recover and resume operations after a security incident or natural disaster.

Pro Tip: Opt for a trusted channel manager with advanced encryption, strict access controls, regular security audits, and disaster recovery systems to ensure your hotel’s data remains secure and guest trust intact.

6 – High-Quality Customer Service and Support

A strong customer support system can help you save time and maximize benefits from your channel manager.

To choose the best solutions partner, first evaluate your hotel’s needs. For example, each channel manager provides different levels of customer support. Some offer 24/7 customer service, which can be a boon for independent hoteliers operating in different time zones or having issues that need immediate attention. Others may only be available during typical business hours. 

The quality of support can also vary. Some systems may provide multi-channel support through phone, email, and live chat, so hotels can choose their preferred communication method. Others have a dedicated support team specialized in helping with technical issues, or providing training. 

If you prefer to troubleshoot problems yourself, a channel manager with dedicated self-help resources like user guides, tutorials, FAQs, and troubleshooting articles is invaluable to resolve any issues quickly.

Pro Tip: When selecting a channel manager, prioritize those offering robust, multi-channel customer support and extensive self-help resources to ensure swift and effective problem resolution. Reviewing websites, online forums, and testimonials from other hoteliers can also let you know whether current users are satisfied with the support available.

7 – Next-Generation AI Optimization

With independent hoteliers expected to handle more than ever, those who don’t harness the power of AI to streamline their operations and boost revenue will fall behind. Looking for AI capabilities in your channel manager is a natural next step. 

One way that AI can be used in a channel manager is through data analytics. For example, DerbySoft leverages AI in its channel management system to analyze vast amounts of data and make performance-optimizing decisions in real-time. The platform’s intelligent pricing algorithm dynamically adjusts the rate of each room based on market trends, competitor pricing, and historical data, maximizing revenue and occupancy rates. Similarly, its intelligent inventory management automatically allocates available rooms across channels based on factors like demand, booking patterns, and customer preferences. 

The benefits of AI don’t stop there. DerbySoft’s intelligent rate parity monitoring checks the prices of your hotel across the web to detect any discrepancies, while its predictive analytics uses historical data and market trends to provide insights on future demand patterns. Tools like predictive analytics are instrumental for hoteliers who want to make informed choices about pricing, promotion, and inventory management.

Pro Tip: Integrate a channel manager with AI-powered data analytics and dynamic pricing to stay ahead of market trends and optimize your room rates in real-time. Harness tools like predictive analytics and rate parity monitoring to make data-driven decisions that enhance revenue and occupancy.

8 – Value-Add Services to Further Boost Revenue

In the competitive hospitality sector, a channel manager should stand out by offering value-added features.  DerbySoft’s integrated digital marketing services can be directly connected to its channel manager. These services use intelligent technology to run effective marketing campaigns across multiple channels. They automate and optimize ad targeting and management, bidding strategies, and reporting, leading to increased bookings for your marketing budget.

DerbySoft offers exceptional marketing expertise specific to the hospitality field. It lets your independent properties easily capitalize on metasearch opportunities for channels like Google, Tripadvisor, and Skyscanner.

Pro Tip: Leverage integrated digital marketing services within your channel manager to increase bookings without inflating your marketing budget. Look for channel managers like DerbySoft that offer specialized expertise and automation for effective ad targeting and optimization in the hospitality sector.

Takeaways

A well-chosen channel management system can transform your property’s visibility and profitability. However, it’s not just about having any system but about having the right one. 

Don’t assume that all distribution systems are the same. Vendors offer solutions that can vary greatly in capability, ease of use, service, support, and performance. A good solution partner, like DerbySoft, should understand the current challenges in the hospitality industry and be ready to address how future changes will affect your hotel’s profits.

By considering these factors carefully and talking with your team, you can make a smart choice that fits your business goals and gives you a competitive edge in a changing market.

Put DerbySoft to the test and request a demo today! One of our product experts will gladly demonstrate our product offering and show you how it can improve your business. Invest in a commerce accelerator system that will take your hotel bookings to the next level!