Factors to Consider When Choosing a Channel Management System for Your Hotel

One of the most important business decisions you can ever make is picking the best channel manager software for your hotel. It might seem like a significant investment, but getting a hotel channel management system can yield higher ROI.

Speaking in numbers, more than 81% of tourists desire a first-rate premium digital customer experience. Therefore, hoteliers must employ the finest channel managers for their businesses to cater to their requirements.

However, with so many products available in the market, choosing the one that suits your business needs becomes challenging. Hence, several aspects should be considered when choosing the best channel management system.

This blog post lists nine specific factors you must consider while selecting a channel management system for your hotel. Without further ado, let’s begin!

9 Factors to Consider When Choosing a Channel Management System

Choosing the right channel manager software for your hotel is an important business choice. In fact, it might even be one of the highest ROI investments, but several variables must be considered when selecting the finest channel management solution. So, let’s look at some common factors that you should consider when choosing a channel manager for your hotel:

1. Size of Your Hotel

   The size of your hotel largely influences the hotel booking channel manager software selection. This includes the number of rooms and distribution channels in your hotel.

   Other things to consider are the quantity of OTAs you are offering to sell and whether or not the channel manager offers integration with it. Simply put, the software will have different pricing systems depending on the size of the hotel.

2. Your Business Requirements

   You need to outline your business requirements and expectations to get the most out of the channel management system. Making wiser investing decisions might help you manage your investment funds more efficiently if you have a clearer grasp of your business needs.

3. Your Budget

   You must select a hotel channel manager software that fits your budget while offering excellent functionalities. Ultimately, you wouldn’t want to shell out much money for a management system that can’t meet your business needs.

4. Extra Features

   If your channel manager provides additional client services, it is always worthwhile and extra value for money. Services such as dedicated technical management assistance, practical training, 24*7 customer service, and other similar things will assist you in achieving the ultimate user experience when working with a professional channel manager.

5. Flexibility and Compatibility

   You don’t want to pay a high amount for a rigid channel manager who is incompatible with your hotel business. Hence, it is crucial to determine if your hotel channel manager is flexible. In addition, all hotels may have varied needs in terms of business requirements.

   Therefore, you must verify if the service providers offer flexibility in customized solutions that meet your hotel management requirements. Contact customer service to discuss the costs and other aspects of a customized solution.

6. Automated Pooled Inventory

   The pooled inventory model is the feature that makes all your rooms and their statuses instantly available and updated on all hotel distribution sites. To prevent cross-selling, the status of each room is updated as soon as it is reserved on any OTA/ hotel website.

   The idea of having a single dashboard for all the hotel booking platforms can be achieved with this automated pooled inventory feature. Currently, not all hotels support this booking feature. However, if you are considering the best channel manager for small hotels, include pooled inventory in your list of channel manager requirements.

7. Transparency

   When choosing a dedicated channel manager software, transparency is the most important and sometimes overlooked factor. Since day one, you must ensure the channel manager providers are upfront with you. Ensure you receive clear answers to your queries from the support staff as soon as you reach out to them.

8. Research

   When choosing a specialized channel manager booking system, you must conduct extensive research. This is to choose your company’s most genuine, trusted, and best channel manager software.

   Shortlist several channel managers based on their services and conduct extensive research on each one. Don’t forget to check the reviews, the testimonies, and other research resources.

9. Safety and Security

   Even the largest chains have been severe victims of data breaches and credit card security problems. The hotel business has been a key target for fraudulent operations. Nevertheless, maintaining cyber security for guests is crucial for hotels, as it may have negative consequences for their reputation and finances.

   However, channel manager tools handle payment information and process guest data seamlessly. Thus, hotels must ensure they invest in robust security software.

Understanding Channel Management Systems

The process of actively controlling hotel pricing and availability distribution across various online booking platforms is known as channel management. The hotel channel management system involves handling all the online distribution channels to sell your hotel inventory to different agents globally. This includes online travel agents (OTAs), meta-search engines (or aggregators), retail travel agents, and global distribution systems (GDS).

To future-proof your hotel business and get a high return on investment, ensuring that the channel manager booking system you invest in holds the latest, advanced, and industry-leading features is important.

Essential Features to Look for

There are a myriad of channel manager software programs available in the market. While some are strong enough to manage even the huge chains, others are better suited for smaller hotels/properties.

Thus, choosing the best channel manager for hotels is crucial if you are planning to invest in one. You must consider seven must-have features before selecting and finalizing any channel manager booking system.

1. Compatibility and Integration

   A smooth integration facilitates the effortless flow of data between these systems. This eliminates the possibility of errors in regular business operations. An ideal channel management system must integrate seamlessly with the existing PMS, revenue management tools, and other operational software.

   Because the room pricing, availability, and booking information move seamlessly from one system to another, it prevents disparities. It reduces the risk of overbookings and the other headaches associated with manual data entry.

   Property Management System (PMS), the key to your hotel operations, manages guest information, keeps a record of the reservations, and looks upon the check-ins and check-outs. Hence, ensuring that the channel manager software you select integrates flawlessly and is compatible with your existing PMS is important.

2. Inheritance and Coordination

   To maximize your visibility and reach in the hospitality industry, your channel manager must be highly compatible with global distribution systems (GDS), online travel agents (OTAs), and third-party booking platforms. So, ensure you go for a system with extensive support and integration possibilities. It should also be able to minimize errors during deployment and continuous use.

3. User-Friendliness and Training

   Your channel management system must be simple, user-friendly, and easy to navigate. Sophisticated systems defeat the intention of streamlining processes.

   Your hotel staff’s successful adoption and efficient use of the channel management system depends on its intuitive and user-friendly interface. Go for a system that is simple to use and calls for minimal training to function efficiently.

   Extensive tutorials, training materials, and continuous assistance from the supplier can speed up the onboarding process. It can also enable your team to utilize the features and functionalities of the system fully. Additionally, try prioritizing accessibility and user experience to increase efficiency and reduce errors while handling your online distribution channels.

4. Pricing and ROI

   Consider and evaluate the pricing structure when selecting hotel channel manager software. It should deliver long-term value. Seek out transparent pricing structures that align with your business objectives and budget.

   Moreover, every technology must have a distinct function and an attractive return on investment. Most channel management suppliers base their monthly price on the property inventories. In fact, pricing based on channels or commissions is expensive and complicated.

   A price that seems too good to be true is again a red flag. It indicates that the hotel booking channel manager might not be reliable. Keep a check on upfront and recurring expenses and compare them with anticipated returns regarding revenue growth, higher bookings, and improved operational effectiveness.

5. Reputation and Customer Support

   When making your choice, it’s important to consider the channel management system provider’s reputation and customer service quality. To determine their credibility and dependability, review their past performance and check their track record, client endorsements, and reviews.

   To reduce downtime and guarantee uninterrupted system uptime, pick a provider known for prompt customer issue resolution. They must provide attentive customer service. To facilitate continued assistance and collaboration in maximizing your distribution strategy, clearly define your expectations. Communicate with the supplier with transparency.

6. Security and Data Protection

   The security and data protection of the hotel channel manager software are important factors to consider. Look into the brand’s stability and management. Ensure they have a solid ownership structure to give you peace of mind that the company won’t dissolve anytime soon.

   To protect against potential data breaches and cyber-attacks, ensure the channel management system complies with the industry regulations and standards for data security and encryption. Also, look through the data storage practices, disaster recovery plans, and security measures offered by the supplier.

   This reduces risks and guarantees your data’s integrity, safety, and confidentiality. Go for systems with proactive monitoring functionalities and strong security features. This will help you keep up with the trust and reputation that you hold for your stakeholders and clients.

7. Customization and Flexibility

   Go for a channel management system that can be easily customized to meet your hotel’s specific needs and preferences. You can customize the system’s settings, rules, and workflows to make it compatible with your existing business procedures and branding standards.

   Select a supplier who is dedicated to introducing innovation and ongoing development. The best hotel channel manager will provide frequent upgrades and improvements to satisfy changing market demands and industry trends. Maximize the customization and flexibility features to
   set your hotel apart from your competitors.

   Choose a system that can scale with your company, take on more bookings, and integrate with emerging platforms and technologies.

Conclusion

An effective channel manager booking system is essential for hotels to maximize their online distribution process in the modern world. Hotels can get a competitive edge in the industry by successfully managing their online presence, increasing bookings, and providing exceptional guest experiences with the right channel management software.

In conclusion, consider your business needs, strategy, and business objectives when selecting the ideal hotel channel management system for your hotel.

Selecting an appropriate channel management system is a crucial decision that can greatly influence the finances and success of your business. To select a channel manager booking system that fits your hotel’s requirements and goals, consider features like affordability, compatibility, reputation, user-friendliness, security, flexibility, and customization.