Choosing a Channel Manager Software

The Complete Guide for Hoteliers & Hosts

Choosing a Channel Manager Software
The Complete Guide for Hoteliers & Hosts

3 Introduction
4 A Brief Look at Hospitality Distribution
5 What is a Channel Manager?
7 How does a Channel Manager work?
10 Why is it important to use a Channel Manager?
13 What to consider when choosing a software?
15 Channel Managers and Property Management Systems
19 What to consider when choosing a provider?
21 What to look for in a Channel Manager for Booking.com and Airbnb
22 Top 5 Channel Manager software providers worldwide
 For growing hospitality businesses, a Channel Manager software is a fundamental part
of a successful distribution and revenue management strategy. Whether you run an
independent hotel, bed and breakfast, vacation rentals, or hostel, it’s critical to get your
inventory in front of potential guests at all times. After all, travelers can’t book a property
they don’t find!

In this guide to hotel Channel Managers, you’ll learn all about Channel Managers, from
how they work to what makes a great software for your business specifically.

Before we dive in, let’s take a quick look at how hospitality distribution has evolved over
the years so we can understand the importance of Channel Managers in online
distribution and marketing today.
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 A Brief Look at Hospitality Distribution
Before electronic distribution, and channel This process all changed as consumers adopted the
management software, inventory had to be dealt internet in the late 1990s and Online Travel Agencies
with manually, using pen-and-paper, phones and (OTAs) offered self-service options to travelers.
fax machines. This method meant lots of Businesses could now manage their own company
coordination between parties and plenty of room travel as well.
for error. Manual distribution also made it incredibly
difficult for hotels to get their inventory in front of Channel Managers emerged to help independent
customers – especially independents unaffiliated hoteliers manage the increasing complexity of
with a large brand. hospitality distribution in the digital era. The software
helped hotels manage availability, rates and inventory
Travel agents would call the hotel, check the rate (also known as ARI or ARI data) on existing channels,
and availability, and then communicate the while also identifying new online booking channels.
customer details to make the booking. The
introduction of electronic global distribution Since hotels could now manage dozens of distribution
systems (GDS) transformed this static data into a sites easily, Channel Managers made it possible for
dynamic feed that allowed hotels to update their hotels to unlock revenue in regions all around the
rates and availability via a computer-based world and appeal to a whole new generation of
reservation system rather than a manual international travelers.
paper-based one.
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What is a A Channel Manager is sophisticated software that
allows hoteliers and hosts to update multiple

Channel
online booking sites automatically every time a
change in availability, pricing, or restrictions occurs.

Manager? Updates are made in real-time, without human

intervention, and are managed from a centralized
Channel Management dashboard so you can do
everything from a single interface.
 Channel Management is the process of actively So how do hotels pick the right distribution channels for
managing the distribution of rates and availability a property’s individual needs? And how do they find
onto multiple online booking channels. These time to manage inventory, update rates, and keep
channels may vary to include online travel agencies content consistent across the many different sites —
(OTAs) such as Booking.com, Expedia, Agoda or each with their own login credentials and user interface?
Hostelworld; travel metasearch engines such as
Google, Kayak, and Trivago; GDSs such as Amadeus The answer lies with a channel manager software made
and Sabre; or online marketplaces such as Airbnb, to solve this problem for all property types: hotels,
Vrbo, and more. bed-and-breakfast, hostels and vacation rentals.

Without a Channel Management software,

properties must login to the extranet of each online
distribution site they’re using and update the changes
manually. This limits the number of sites they use.
After all, there’s only so much time in the day to
manually manage individual extranets.

And even then, manually-managed distribution is

risky: any delays in updating rates and availability on a
channel’s extranet could mean selling a room that isn’t
available, or selling at a lower rate, which can lead to
© 2020 Cloudbeds.

overbooking and sub-optimal yield management.

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How does In simple terms, a Channel Manager will update,
in real-time, your property’s distribution data

a Channel
across all your connected channels. Each time
you update your central calendar or change a

Manager
nightly rate in your Channel Manager dashboard
or integrated software (PMS / CRS), it will be
automatically updated on all your connected

actually booking sites.

work?
And when you receive a new booking from an
OTA, it will show up in your Channel Manager
(and PMS / CRS), and that room’s availability will
be closed automatically across all connected
channels. The same happens with a cancellation.
 In more tech terms, a Channel Manager uses a updates to/from the Property Management System. By
two-way sync via XML to connect to each individual putting all inventory into a single place, rooms are never
channel’s extranet. It then pushes ARI updates to overbooked because the same room can’t be booked by
that channel and, for a two-way sync, it imports two different channels.
reservations/cancellations into your Channel
Manager, PMS and/or CRS dashboard.

It's an automatic, seamless 2-way flow that keeps

everything synced and virtually eliminates mistakes,
like inaccurate rates or overbookings. With
advanced channel manager connections, the
update is fast. To illustrate, the average new Expedia
booking is delivered into the Cloudbeds Channel
Manager within seconds. In case of a one-way sync,
the Channel Manager will not import reservations or
cancellations.

Channel Managers prevent inaccurate rates or

overbookings by using what's known as “pooled
inventory.” This functionality aggregates inventory
into a single place so that all bookings are pulled
© 2020 Cloudbeds.

from one “pool” that’s based on real-time availability

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 Channel Managers do 3 Allotment
A sophisticated channel management strategy is
more key tasks based on an optimal channel mix that
dynamically allocates inventory to channels
according to your current objectives.

Channel mapping
The software maps room types to each channel's
formatting requirements so that rooms display
consistently across all channels while also syncing
seamlessly back into the PMS. There are no
duplications or manual reconciliations required!

PMS update
Your Channel Manager connects directly into your
hotel PMS, acting as the real-time shepherd of
rate and availability data between your PMS and
whichever channels you sell on. Each new
reservation is delivered right into the PMS, without
any manual intervention.
© 2020 Cloudbeds.

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Why is it While it's possible to manage your inventory
by connecting to each channel’s extranet, and

important
manually update availability, rates, and
inventory, it’s not very efficient and it’s also

to use a
prone to errors.

With a Channel Manager you can save time,

Channel get more bookings, and distributing room

inventory becomes easy.

Manager?
 Top reasons to use a Higher ROI
Channel Managers create new ways to sell existing
Channel Manager inventory, resulting in a higher return on your investment in
both your sales and marketing efforts. With pooled
Market Reach inventory, advanced rates with discounts or non-refundable
rates, and upsell integrations, hotels optimize revenue
A Channel Manager puts your property in front of
management with smart pricing strategies.
more travelers than ever before. Since it’s relatively
simple to connect to a new marketing channel, there’s
Another way to sell a room is using shared inventory, which
a low investment of time and resources to push ARI to
is when you sell the same room under multiple room types.
a new channel. This means that properties of all sizes
An example of this would be selling a room as either a dorm
can now access new, global regions and segments
room or a private single room. Of course, the risks here are
(corporate/leisure/group) that were difficult to access
selling the same room twice. By listing shared inventory via a
via manual channel management.
Channel Manager, the system automatically ensures that
any linked room will never be sold twice. This option gives
Multiple booking sources means more visibility – and
you more ways to sell the same room to different types of
ultimately, more bookings. This leads to higher
travelers without the risk of overbooking.
occupancy, especially in times of low demand when it's
needed the most.
Real-time channel management also improves search
performance on OTAs, which rank properties higher if they
have real-time updates of ARI. When content is accurate and
updated, properties enjoy better positioning in search
© 2020 Cloudbeds.

results, leading to higher ROI.

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 Optimal Distribution
Since each channel has its own cost and commission Software also makes the pursuit of profitable distribution
structure, profitable distribution requires careful much simpler. With a single view, hoteliers have more
consideration of which channels to use, how much granular control of distribution costs. This saves money by
inventory to allocate to each channel, and how to adapt emphasizing lower-cost channels first and then moving
that channel mix to achieve your objectives. inventory to higher-cost channels to fill gaps in demand.

By using a mix of OTAs, meta search websites, B2B

wholesale or niche accommodation booking sites, you
make sure your property is visible to the right type of guest.
For example, hotels can shift inventory from big-name
OTAs (like Booking.com and Expedia) to more niche OTAs
that sell to specific travelers, such as boutique-only OTAs
(Mr and Mrs Smith), last minute bookings (HotelTonight) or
even alternative outdoor lodging (GlampingHub).

Money and Time Savings

It takes a while to get familiar with each channel’s interface.
Without any software, it's a full-time job to log into each
channel’s extranet and update ARI several times per day.
That time cost correlates closely to the financial cost of
paying someone on staff to manually manage distribution.
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What to consider
when choosing your
Channel Manager
software
 Best-in-class Channel Managers are built to connect Functionality
to hundreds of booking channels reliably and Look for simplicity, a product that’s user-friendly, intuitive
accurately, with near-perfect up-time. and meant for self-service. It’s about adding a tool you’ll be
Here are the most important considerations. using consistently. Other useful advanced options include:
payment processing, multi-currency support, reporting,
multiple users and user roles, etc.
Connectivity
The most advanced channel management platforms
today offer advanced API connections with a 2-Way
PMS and Booking Engine Integration
synchronization. Updates are made in real-time and it's all Your Channel Manager should also integrate with your other
cloud-based, which eliminates the need for on-property hotel management software, especially your property
technology and allows for greater flexibility and speed. The management system and hotel website direct bookings
system is very powerful as it supports up to millions of engine. This way, all of your hospitality management
bookings per day. systems will be in sync and you can log into one system to
manage them all, saving countless hours and avoiding
manual errors.
Channel Mix
Choose a provider that connects to a variety of booking Using a Channel Manager and a PMS is crucial for growing
sites and global markets so you can reach travelers from hospitality businesses. We cover in depth this very subject in
around the world. Options should include big-name OTAs, the next chapter..
niche otas, meta searches engine websites, and GDS
(global distribution systems). Check if the provider charges
any per-channel fees or added commissions as well.
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Channel A Property Management System
(PMS) is the greatest asset when it

Managers
comes to controlling and managing a
hospitality business, regardless of the

and Property
property’s size, type or operational
needs.

Management The list of front-desk and business

processes that a PMS streamlines is

Systems
lengthy, and it includes managing
reservations, staff, check-ins/outs, guest
communication, payments, rates,
availability, occupancy, and much more.
 In simple terms, a PMS is your control system and data Benefits of using one system with a
hub, and a Channel Manager comes into play to
distribute your inventory information onto online built-in Channel Manager and PMS
booking channels and your own website – and maintain
all systems up-to-date. Centralized Info
Using an all-in-one system that includes a Property
In today’s technology landscape, you can choose to Management System and an advanced Channel Manager,
manage your property with a software that incorporates such as Cloudbeds, allows you to leverage daily operations
a Property Management System and a Channel Manager and inventory distribution from a single platform. One
into one system, you can opt for two separate softwares place where all your reservation, guest and pricing data is
that integrate with one-another, or use a Channel stored and is easily accessible for daily front-desk
Manager only. operations, reporting, analytics, etc.

No Data Friction
Frictionless data update is very important because delays
can affect your revenue. For example, when you increase
your rates in your PMS, you’re making sure that they’re
updated across all channels in real-time. Your guests will
shop the latest price, without seeing the price jump up as
they enter their details to complete the booking. The same
works for offers and promotions. When you or the front
desk agent create a reservation in the PMS, the room will
be closed for selling in real-time.The same works for offers
© 2020 Cloudbeds.

and promotions.

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 Sophisticated Connection Suite of Products
In today’s competitive market, you have to make sure your An all-in-one system often includes other important
distribution and marketing efforts are aligned. That comes technology that’s also interconnected to your PMS and
down to synchronizing as much data as possible with your Channel Manager. For instance, the Cloudbeds suite
marketing channels – from amenities and images, to includes a commission-free booking engine and has a
different rate plans, promotions or special offers. When you built-in pricing intelligence engine to track real-time
use two separate systems you have to double check the pricing changes in the market.
integration capabilities at two levels: from your PMS to the
Channel Manager and from the Channel Manager to the One Company
distribution sites. By opting for one system, you’re interacting with one
technology partner, which means you’ll have one point
Product Updates of contact, one support team to investigate issues and
OTAs are constantly improving their connectivity and one agreement.
introducing tech updates that make the booking process
smoother for both travelers and accommodation
providers. Managing your property with one software
means that one connectivity team will apply API updates,
and then test and trial the connection from your main
dashboard right into the OTA extranet. By using two
integrated systems, you will depend on two different
companies and teams to apply changes.
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 Using a Channel Manager What will your daily planning look like for
without a Property different areas: front-desk, housekeeping,
reservations?
Management System
How will guests be checked in / checked out?
If you plan to use a Channel Manager without a PMS,
Will you use your Channel Manager to store all
some manual work (pen and paper, spreadsheets)
reservation info, as well as payment records and
will most likely be necessary.
guest personal data? Or will you need to
In order to make the right decision, assess your transfer the information onto another tool?
operational and business needs, as well as your staff’s
How will you generate guest invoices?
capacity. This will help you evaluate if you can run
your property with the use of a Channel Manager
How will you manage the recurring tasks that
only. Here are a few questions to consider.
come with guest communication?
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What to consider
when choosing a
provider
 Here are the must-haves when selecting the best Industry Recognition
Channel Manager provider or all-in-one system for Major OTAs also run programs for software partners and
your independent hospitality business. each year they recognize Premier / Preferred Partners that
fulfill the highest technical benchmarks of connection. Also,
Pricing Model look for companies that offer a free trial or free use of a
Money matters! Does the provider work on a per-booking demo account so you can test the tech out before you
commission basis? Does a flat fee/subscription model commit.
apply? Are there mandatory setup fees? Each technology
must serve a clear purpose with a compelling return on Safety and Security Compliance
investment. Commission-based or channel-based pricing When it comes to software that handles sensitive data, like
gets complicated and costly. your rates and guest information, you’ll want to make sure
your data is secure. Inquire about compliance: PCI DSS, SCA,
Onboarding and ongoing Support Guest data compliance, and GDPR.
Before deciding on a provider, you’ll want to know what it
takes to get started. How long is the onboarding process? Customer Reviews
Is there guidance for setting up your account? What kind Check online reviews on reputibile software reviewing sites
of support do they offer? How robust is the knowledge like Capterra, Software Advice and Hotel Tech Report.
base for self-service learning and troubleshooting?
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 What to look for in a Channel What to look for in a Channel
Manager for Booking.com Manager for Airbnb

If Booking.com is one of your main channels and you For properties that use Airbnb, there are some specific
want to ensure effective distribution, look for a Channel considerations to this particular platform as well. Features
Manager with the following features: to look for include:

2-way API connection 2-way API connection

Rate parity adjustment Content and image synchronization

Pooled inventory management Integration of discounts, taxes, fees

Advanced rates integration Pricing Rules

Guest credit card integration

Airbnb also recognizes vendors that go above and
Advanced: guest messaging, no-show reporting. beyond when it comes to technology. Airbnb Preferred
Software Partners are recognized by Airbnb for
Another consideration is whether your chosen vendor has providing the “functionality and software connections
earned a place in Booking.com’s Premier and Preferred that meet or exceed all technical benchmarks” and
partners program. Premier is the highest category for “collaborating with Airbnb across all program initiatives.”
companies with the best connection. Requirements include
© 2020 Cloudbeds.

robust, fast and stable connection, product adaptation,

number of connected properties, and more.

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 Effective online distribution is key to a profitable hospitality

Top 5 business. So don’t suffer through manual updates that leave your
staff overworked and your property vulnerable to overbookings. If
you find that your Channel Manager isn’t providing enough return

Channel Manager on your investment, consider a change.

Software Providers The best hotel Channel Manager will simplify your life and help you
achieve revenue targets reliably. If you need help finding a provider,
Worldwide be sure to check this ranking by Hotel Tech Report. We have
narrowed down the search to these top 5 worldwide providers:

Cloudbeds Channel Manager: myallocator

Siteminder

Rategain

STAAH

Omnibees
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 20,000+ properties
worldwide trust Cloudbeds
to grow their business.
Find out how we can help you automate
operations and reach more travelers.

Request a demo
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