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Building a Strategy for Your Hotel Distribution

Efficient distribution is fundamental for the long-term health of your hotel. Let’s look into an efficient hotel distribution strategy, that enables the building of an optimal channel mix and tips to ensure you’re making the most of your channel manager.

Optimizing Your Channel Mix : Media by staah
Optimizing Your Channel Mix : Media by staah


Today, hoteliers enjoy unprecedented visibility and pathways to reach guests where they shop. Potential guests are now able to do much more research on places to stay and can quickly compare prices across multiple hotels. However, increased exposure is just the start of the process.




A bigger job is to convert the lookers into bookers. Whether bookings come from OTAs, metasearch, your website, mobile apps, or over the phone, you can maximize profitability for your hotel by implementing a differentiated distribution strategy.


Let’s look at a few areas your strategy must cover to be successful.


1) Channel Management and visibility

Maximizing reach without breaking the bank is a constant dilemma for hoteliers. In today’s hyper competitive environment, leveraging the reach and marketing spend of OTAs (right channel mix) to increase your demand is a critical component of the modern hotel distribution strategy.



A channel manager not only helps you stay on top on managing your channels; acting as a data warehouse, it is also a crucial tool to help you make informed decisions about this channel mix

2) Understand your cost of acquisition

Don’t go on the face value; dig deeper into channel insights to understand the true cost of every channel.


3) Define your target audience

It is important to understand who your guests are in order to provide relevant offers and guest experiences and find the right channels to reach them.



4) Focus on direct bookings

Since a booking engine on your property’s website is typically commission-free, your direct bookings result in higher profits and increased revenue for your hotel. While you may need to partner with OTAs via the channel manager, in order to attract certain types of customers, you will begin to earn more direct bookings as customers discover your brand on their own.


5) Your website

Your website is the most cost-effective way to market your property and drive commission-free bookings via a booking engine attached to it. Ensuring the website and booking engine are optimized to deliver should be a priority for every hotelier.




6) Smart rate planning

Leverage the insights within your channel manager, booking engine, and PMS to keep a flexible daily rate to maximize yield and increase your bottom line. You can even incentivize getting forward bookings now with flexible cancellation policies. Another rate variance you can apply is seasonal rates. With these tips to building a profitable distribution strategy, your property will increase both bookings and revenue. The success of your property is in your hands.


Every hotel has an optimal distribution channel mix – meaning that channels are selected and managed in such a way that they will drive optimal profitability for the hotel in the long run. This is unique to every hotel and depends on several factors such as location, brand presence etc.

  • With market data under your belt, you will make more informed decisions.

  • Forecasting and pricing is more scientific and more successful when based on accurate data.

  • Identifying factors that influence channel traffic and revenue are easier.

Source : www.staah.com

 



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Just remember do it for right people in the right place, with effective and efficient promotion to gather stable product image/knowledge and creating the competitive price (room rates should not be canibalized between each market segmenamtion).

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