The Channel Manager Dilemma: A Call for Re-evaluation
- Askar DG KAMIS
- Aug 23, 2024
- 2 min read
In today's competitive hospitality landscape, the role of channel managers has become increasingly pivotal.
They offer hotels a valuable tool for expanding their online reach and attracting guests from a wider audience. However, their effectiveness can be compromised if not managed strategically.
One significant concern is the potential for online travel agencies (OTAs) to exploit channel manager integrations. OTAs often have sophisticated algorithms that can quickly identify and extract a hotel's lowest available rates.
While these rates may be intended for specific promotions or campaigns, they can be used by OTAs to create even more attractive offers, often leading to rate disparities between direct bookings and those made through OTAs.
This discrepancy can significantly deter potential direct bookings, impacting a hotel's revenue and customer loyalty.
To mitigate this risk, hoteliers should carefully evaluate their channel manager integrations and consider the following strategies:
Disconnect and Assess: Temporarily sever the connection with the channel manager to gauge the impact on direct bookings and revenue. This can provide valuable insights into the extent of the problem. In most cases, the issue is OTAs have an agreement with the hotel for some additional promotion/campaign rates which they have defined the rate from the hotel lowest rate and then adjust on some percentage for these promotion rate. At the end, their ( OTAs ) rate will always be the lowest rate that appear in Google.
2. Re-evaluate Integration: If the decision is made to reintegrate, establish clear guidelines and policies with the channel manager to ensure rate parity and prevent unauthorized rate adjustments.
3. Implement Rate Parity Monitoring Tools: Utilize technology to proactively track and address any discrepancies between direct and OTA rates. This can help identify and rectify issues promptly.
By taking these steps, hoteliers can better control their rate distribution and ensure that their direct booking channel remains competitive and attractive to guests.
Last but not least, while channel managers can be a valuable asset, it is essential to approach their integration with caution and vigilance. By carefully evaluating their effectiveness and taking proactive measures to address potential pitfalls, hoteliers can maximize the benefits of these tools while minimizing the risks.
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