Channel manager: what is it, why have it and how to choose it?

We have explained what the channel manager is, but how does this software work in practice?

The main function of the channel manager is to connect the PMS and the booking engine of the structure with all the online distribution channels used. When a reservation is registered on a portal, it is automatically sent to the PMS. The channel manager then updates the hotel’s availability on all other connected channels.

This data transmission is done with a two-way API communication (or two-way XML). This means that information synchronization occurs in both directions. in other words, sending prices from the CM to the portals and sending the availabilities from the portals to the CM. In this way it is no longer necessary to enter the extranet of each OTA to update rates and inventory. It’s all done from the software dashboard. As a result, the hotelier can save time and avoid frequent careless mistakes.

What properties should use a channel manager?

This software can be used in any type of accommodation facility. Hotels, hotel chains, apartments, villas – everyone needs this tool for online distribution.

Which portals does the channel manager connect to?

The channel manager interfaces with:

• OTAs (such as Booking.com, Expedia, Airbnb, HRS, etc.),
• GDS (Global Distribution System)
• metasearch portals.
• It also allows you to download bookings from online channels directly into your PMS.

With a channel manager, it is possible to manage all the interlocutors of your structure from a single dashboard. Whether your property is a hotel, a B&B or an apartment agency, this has several advantages.

What happens when you receive a booking?

When you receive a reservation from an OTA, for example Booking.com, the channel manager immediately updates the availability on all connected channels and on the internal calendar. If this is connected to your PMS, the reservation is also recorded in the management system. In this way, each reservation is easily traceable in the PMS, as well as all the information related to it (guest data, payment information, etc.).

Conversely, when you need to update prices for channels, you can do it directly from the channel manager. Just change the rates for the desired rooms and send them to the selected portals. In a few seconds the system will update them on the OTAs. Thanks to this feature, you can always have maximum control over your pricing policies and easily update rates based on seasonality.

6 reasons to have a Channel Manager

We said that all accommodations need a channel manager if they sell rooms or apartments on multiple channels. Hotels, apartments, hostels have specific needs, but when it comes to online distribution they have the same needs. Here are 5 reasons why you can’t do without a channel manager.

1. It is possible to conveniently manage the different channels on which the rooms are sold with a single login and from a single dashboard;

2. The risk of overbooking caused by human errors and distraction is avoided;

3. Allows better price control based on channel and period thanks to automated calculation rules;

4. It allows to increase the visibility of the property thanks to the connection to several OTAs;

5. Helps improve online reputation through centralized content management;

6. It offers clear and useful reporting on the data collected from bookings. For example, the best performing channels, the main countries of origin of the guests and much more.