Hotels have to be spot-on with their online distribution strategy because how the guest has made his booking can make a big difference to a hotel’s bottom line. Hoteliers have to focus on their operating efficiency via appropriate rate distribution management. The idea is to work out a channel mix to optimize maximum output with maximum profit. The focus is on cutting down distribution costs and improving the top line revenues by strengthening their marketing and distribution reach. The new fashions that are evolving, increased role of Channel Management Solution is a prominent factor for today’s revenue manager to succeed.
“Defining what inventory to sell where and at what price has become a critical step in running a profitable hotel business”
The emergence of Google and new startups coupled with the growth of mobile platform means hotels couldn’t be complacent in 2016 by simply relying on growth from existing partners. Instead, they have to plan for the future and start counting on relatively new distribution options. Those who did so are more likely to witness increased revenue flowing in and respond better to market needs in the coming years.
Listed below are a few tips for hoteliers to improve their online Hotel Channel Distribution:
1. Keep your target guest in mind, while designing your hotel channel distribution strategy
Hotels should focus on supporting channels based on the customer profile they want to target, e.g. Are you targeting the “price conscious” category, or you are looking to tap the customers looking for “best value” or some other category apart from these. Accordingly, design your strategy and budget for inventory distribution.
2. Work in partnership with your OTAs
Distribution through OTAs is usually the least profitable channel, but you cannot ignore the fact that it has great efficacy when it comes to reaching out to brand agnostic customers. Additionally, don’t overlook to quantify the ‘billboard’ effect by getting listed on third-party distributors’ sites. Keep your General Manager, Revenue Manager and other staff updated about new channels and strategies, as hotels can have more leverage if they are striving for the same goals and objectives.