What is channel management?
Channel management refers to managing bookings across various online channels in the hospitality business. It ensures a consistent guest booking experience and helps retain business. The terms channel management and channel manager are used interchangeably, wherein both apply to tools that focus on reservation management online.
Hospitality businesses use hotel management systems and channel management software to manage booking operations in a centralized location. Hoteliers and hospitality professionals turn to them to handle functions such as property management, marketing campaigns, and room reservations.
Types of channel management software
The two main types of channel management systems are as follows:
- Integrated channel management: This software focuses heavily on overall property management—room inventory, rate revenue, and occupancy, for example. Integrated channel managers are from other hospitality solutions such as hotel management software
- Cloud-based platforms: These are standalone tools that concentrate on booking analytics about online channels. For businesses that don’t have an in-house reservation team, the data provided from multiple distribution channels proves useful.
Benefits of using channel management
In comparison to traditional reservation systems, channel management software has several advantages. Among these benefits are those associated with property data and revenue.
- Better guest satisfaction: Channel management helps hotels boost guest satisfaction by reassuring them that their reservation will be honored no matter how they booked. Guest satisfaction positively affects revenue and reputation.
- Improved efficiency for internal sales teams: Channel manager software can collect data from various booking engines and reservation platforms, so it's easy to see direct bookings versus bookings made through other online channels. This data will guide future sales goals and target audience campaigns.
- Property collaboration: Projects like room audits are completed more efficiently when different departments have sufficient access to critical information. Channel management mends the communication gap among sales, reservations, and finance by making room inventory data available to anyone.
Basic elements of channel management
With channel management systems, two essential functions exist to effectively access reservation data across distribution channels. These elements are:
- Reservation data configuration: As numerous reservations appear, the channel manager must be able to create, update, and remove reservations. For businesses that work with vacation rentals, some features may include multiple reservations across various properties.
- Room inventory: For channel management systems that are hotel focused, including room inventory of the property is a must, especially for identifying room shortages and double bookings.
Channel management best practices
In order to make channel management work, hospitality businesses should follow these best practices.
- Keep updated listing information: Maintaining consistent and current property information with room listings is a must. Property listings have to be consistent and accurate across multiple booking channels. This might include renovations, room upgrades, and on-site construction.
- Configure data properly: Channel management software generates comprehensive data such as room rates and revenue management. Small market businesses such as inns and bed-and-breakfasts can adjust market strategy to increase occupancy and property income.
- Integrate with other software: Some channel management software tools work better if they’re integrated with hotel reservations software or hotel management software. Breaking down these separate systems helps businesses understand how bookings affect property operations.
Channel management vs. hotel management
Despite their similarities, channel management and hotel management are different hospitality solutions.
Channel management focuses on booking and room inventory management. Hotel management focuses on managing the entire property, including aspects like housekeeping, maintenance, and sales.
JaKayla D. Lathon
JaKayla is a Market Research Analyst at G2 specializing in real estate, education, and hospitality. Prior to joining G2, she worked in research and financial analysis in the private sector of Chicago, IL. JaKayla's result-driven nature helps her to combine G2's user data with the understanding of products and services in the market. In her free time, she enjoys traveling, gastronomy, and advocating for rescue dogs.
