However, to boost the hotel’s revenue it is essential to harness a combination of distribution channels that is created to effectively meet the demands of the guests.

At its very core, hotel distribution channels, whether offline or online, are tasked with the responsibility to sell rooms to potential customers in a way that boosts occupancy and hotel revenue.

For instance, all hotel websites, OTAs, global distribution systems, direct phone bookings, etc, fall under the category of hotel distribution channels.

Building a Hotel Distribution Channel strategy

A hotel’s distribution channel strategy basically refers to a plan, which entails booking rooms at a profit through the aid of a variety of booking channels. The right strategy will always embed pricing, location, target group, pricing, amongst many other elements.

However, to create the right strategy, there are few things that should always be kept in mind:

a) Discerning the business objectives

b) Finding the target audience

c)Comparison of key metric across different channels

d)Testing and Optimising the strategy over time

Now, let’s take a look at different types of hotel distribution channels.

Direct Bookings Through the Website

Majority of hotels, today, prefer their own website as the primary source of bookings, as they are more profitable, result in repeat visits, and can be better optimised for upselling.

In fact, your own website offers you the opportunity to display the unique amenities, and show-off the property with high-quality images and videos to boost engagement and positive testimonials.

If your hotel’s website is not upto the mark, then make sure that the mobile version of the website is optimised as it can help you generate speedy bookings and increase the occupancy of your hotel.

In addition, make sure that the hotel website is well-optimised for search engines, as they can help increase its visibility. Thus, with a clear navigation, responsive design and seamless booking experience, this could become your go-to hotel distribution channel.

Online Travel Agencies (OTAs)

There is no way to get around hotel distribution channels, without mentioning the potential of OTAs. Online travel agencies are an essential element of the booking process, since these platforms have a huge audience which makes it easier to reach guests which were previously unreachable.

While you may not have complete control over your hotel’s messaging on the OTAs, still you can optimise it by using photos, highlighting amenities, and offering special prices to the OTA audience. It is important to note, that as a hotelier you only need to make use of OTAs that are used by your target audience, and save the money on the rest.

Phone Bookings

As a hotelier is it your responsibility to think about diverse groups of people, especially when choosing a hotel distribution channel.

Certain demographics like old adults may not be familiar with online channels, making phone bookings a valuable avenue for them. In addition, phone bookings can also be useful in resolving customer queries and offering a human touch to the booking process.

As a result, it’s imperative that hotels train their staff to take bookings, even if they are made via the front desk. This distribution channel can help you save big bucks as it allows for direct in-line communication with the guests. Along with it, hotels can also receive feedback as you can ask the guest why they made the booking or why not.

Global Distribution Systems(GDS)

Global Distribution Systems are a must-have, as travel agents use these systems to browse through different hotels, view rates, and check availability. There are a myriad of Global Distribution Systems in the market, but some of the most popular ones are Amadeus, Sabre, and Travelport.

Not only are these systems helpful in keeping the information up-to-date, but also offer real-time price and availability data to travel agents across the world. To make full use of this channel, set a competitive pricing but also make sure that it can cover the full fees of the Global Distribution System.

Meta Search Engines

Standing one level above OTAs, these meta search engines such as TripAdvisor, Trivago, Google Hotels etc, charge hotels and OTAs in either a pay-per-click or commission basis for bookings. Featuring a simple booking process with easily searchable information, these meta search engines offer an enhanced user experience.

To maximise booking through meta search engines, make sure that your price matches with the one displayed on your website. Furthermore, test the CPC to balance the cost and competitiveness with OTAs. Last but not the least, be sure to adjust your booking strategy for the meta search site that you intend to target.

Putting Hotel Distribution Channels to Use With the Support of Technology

In an age where technology has transformed all aspects of the hotel management process, why limit yourself to traditional booking avenues. With a Hotel Channel Manager you get to manage your distribution strategy, by allocating the right price at the right time to achieve maximum revenue and occupancy. Along with which, you can also keep track of all your channels and leverage crucial performance insights.

So, if you want to keep everything in place, make sure to check out Revivo’s dynamic channel manager, specially designed for hotels to optimise Hotel Distribution Channels.

FAQs

Q1. What do you mean by a Hotel Distribution Channel?

Ans: Hotel distribution channels, whether offline or online, are tasked with the responsibility to sell rooms to potential customers in a way that boosts occupancy and hotel revenue.

Q2. What is a Hotel Distribution strategy?

Ans: A hotel’s distribution channel strategy basically refers to a plan, which entails booking rooms at a profit through the aid of a variety of booking channels.

Q3. What is a Channel in Hotel Management ?

Ans: A channel in hotel management basically refers to an online and offline booking engine which can be used to attract guests, for effortlessly making their bookings.

Q4. What is the most popular distribution channel in hotels?

Ans: The most popular distribution channels in hotels is the hotel website itself as it allows hotels to display their amenities, increase profitability, boost repeat guests, and can be optimised for upselling.

Q5.How to build a Hotel Distribution strategy?

Ans: To build a hotel distribution strategy, make sure to ascertain the business objectives, decide the target audience, compare key metrics across different channels, and test and optimise the strategy over time.