2019 Edition

THE ULTIMATE GUIDE TO HOTEL CHANNEL MANAGEMENT

Underwritten, in part by:

CONCEPTUALIZATION, DESIGN, DATA AND COPY EDITING:

Hotel Tech Report

CONTENT & RESEARCHMike Ford

Heather HollisSofia Nilsson Burston

Dean Elphick

Buyers guide created in collaboration with SiteMinder

WHAT IS A CHANNEL MANAGEROverviewKey benefits and reasons to adoptWhat hoteliers are sayingRecent trends

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BUYING ADVICE AND RECOMMENDATIONSCritical featuresTop rated providers by hoteliers (bonus: Side-by-side comparisons)Integrations to considerKey questions to ask vendors during your research

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HOW MUCH TO BUDGET AND WHAT TO EXPECTPricing models, budgeting and implementationKey success metricsSuccess stories, news and articles

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TABLE OF CONTENTS

WHAT ISA CHANNEL MANAGER?

Hotel Tech Report | 2019 Channel Manager Buyer’s Guide 3

OVERVIEW

AA channel manager is a piece of hotel technology that allows a hotel to

expand their reach and visibility online, as well as more easily manage its

rates, availability, and reservations. With a channel manager, hotels can

access hundreds of online distribution channels and connect to as many as

they like at the same time. Hotels can list all their rooms and availability on

all channels and the channel manager will update these automatically and

in real-time when a booking is made, thanks to a pooled inventory model.

This allows the hotel to maximise occupancy and reservations with almost

no risk of being overbooked.

WHAT are THEkey benefits OF HAVING A BEST-in-Class CHANNEL MANAGER

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OVERVIEW

INCREASE OCCUPANCY

Hotels can be visible and attract guests on the channels that target the most relevant guest profiles. Opportunity to broaden reach across business, domestic and international travellers, all for no extra cost.

1

STAY IN CONTROL AND SAVE TIME

Automatically update all channels - direct and indirect - by listing all rooms and have availability updated on all channels – at the same time - with a pooled inventory model. And leverage yield management to maximise occupancy rates, while avoiding overbookings.

2

MAXIMIZE PROFITS

Integrate the channel manager with the booking engine for direct bookings to help ensure Brand.com is kept at the forefront of the guest acquisition strategy and commissions kept under control. Rate automation and rules can maintain the pricing strategy with little effort in real-time.

3

the inside scoopCut through the noise and find out what real hoteliers are saying by reading in-depth reviews.

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OVERVIEW

VERIFIED USER REVIEWS

Read the full review on

“I love the fact that rates and inventory can be distributed directly from our PMS giving everyone an even playing field in real time. Adding restrictions such as minimum LOS etc. Connecting to both major OTAs and Tour Operators makes selling our rooms a lot faster…”

Revenue Manager from Nassau (Bahamas)

Read the full review on

“The Bar Pricing Mechanism is amazing. I just update the rate for my base occupancy and category. After this the system will automatically publish the prices for all the combinations configured on the channel Manager. Reduced my time for managing Multiple Properties…”

Owner from Mumbai (India)

Read the full review on

“No overbookings, the old way we did everything manually and I only put so many rooms on the booking engines then when I did get busy I had to log in again to the booking engines to shut them off individually. To time consuming…”

Owner from San Francisco

Read the full review on

“We always get a perfect service for a perfect product. Easy to work with and before you start you get short compact training! After service is also perfect; they really take the time to solve your problems and explain everything in a way that even beginners can understand...”

General Manager from Istanbul

Read reviews

Trend WATCHRead predictions from domain experts and learn about the state of the category.

Hotel Tech Report | 2019 Guest Room Tablets Buyer’s Guide 9

OVERVIEW

METASEARCHMetasearch engines can be very effective in driving bookings for hotels, both direct and indirect. For example - Google Hotel AdsSiteMinder Prediction: More travellers than ever will use Metasearch and hotels will have to factor this into their channel management strategies.

OTA ADVANCEMENTMany online travel agents are starting to adopt advanced technology, and expand what they can offer hoteliers.SiteMinder Prediction: OTAs will become a more unique and efficient proposition for hoteliers looking to distribute their inventory to a wide prospect base.

CHANNEL MANAGER ADOPTIONSuprisingly, currently only about 50% of hotels worldwide employ a dedicated channel manager to help them manage and optimize their distribution channels.SiteMinder Prediction: The industry will only increase its dynamism and more hoteliers will realise a channel manager is an essential piece of technology moving forward.

WHAT’S NEW AND INTERESTING IN THE SPACE?WHAT’S NEW AND INTERESTING IN THE SPACE?

A channel manager expands your hotel’s reach and visibility online while

simultaneously simplifying the process of managing

rates, availability, and reservations. Access hundreds of online

distribution channels and connect to as many as you

like to increase your occupancy and fill your hotel.

“ “

BUying advice and recommendations

Critical Features

Top rated providers & comparisons

Key integrations

Questions to ask vendors

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BUYING ADVICE AND RECOMMENDATIONS

The channel manager should be able to integrate with existing systems such as the PMS, RMS, and CRS.

Deep system integrations

It’s important the hotel has the opportunity to connect with many new booking sites across new markets to maximize reach and grow revenue.

Network sizeHotels will want to make sure their preferred channels are supported by the channel manager they plan to invest in.

Compatability with existing booking sites/channels

To manage revenue properly, the channel manager needs to provide the hotelier with a clear view on channel performance for as many channels as the hotel is connected to

Intuitive and effective reporting

It’s vital the channel manager operates on a pooled inventory model, to minimise overbooking and maximise the sale of inventory.

Pooled inventoryManage room inventory, availability and rate plans across all channels through a simple user interface, in real-time

Real-time channel management

WHAT ARE THE MOST IMPORTANT FEATURES TO CONSIDER?

Who’s who…See which players are trending in the market and launch Hotel Tech Report compare to compare them side-by-side.

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BUYING ADVICE AND RECOMMENDATIONS

For hotels looking to looking to streamline their internet bookings and increase profit margins without contending with overwhelming technology and ever-changing travel trends, The Channel Manager puts you in control…

SiteMinderChannel Manager

Integrate and automate all your systems with reliable two-way interfaces. Enter your rates and availabilities in our system or have your PMS send them to us. This data is then forwarded to all your connected booking portals.

Hotel-Spider

AxisRooms came into existence with the consolidation of need, experience and tough grind by three of the medalist’s in the Travel & Hospitality industry. In the year 2011, company was founded with an intention to increase and improve Hotel Business Distribution using…

AxisRooms

A hotel channel manager is a system that handles online distribution of your hotel rooms so you can manage them easily from one place. When a customer books a room from one website, availability is automatically updated across all other channels including…

STAAH

The Vertical Booking Synchro Channel Manager is not just a simple Rate Allocator, where prices and availabilities have to be specified manually day by day; it's an Advanced Synchronisation System. The hotelier enters availability per room type in a simple panel then…

Vertical Booking

Myallocator is a channel manager that synchronizes your inventory with hundreds of online marketplaces. Push updates from your choice of property management system (PMS) to online travel agencies (OTAs) in real time…

Cloudbeds

Want to compare products side-by-side with screenshots, reviews,

features and more?

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Most recommended by hoteliers

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TOP RATED

““SiteMinder offers both Technical Excellence and Hostpitable Personal Service. I have had the same reps (Justin for Service and Andres for Tech) since we joined SiteMinder a year ago. Their Channel Manager makes it easy and reliable to use the OTAs as an added revenue stream…”

SiteMinder review verified by Hotel Tech Report

ProprietorEast Hampton (United States)Bed & Breakfast

Hotel Tech Report | 2019 Guest Room Tablets Buyer’s Guide 15

BUYING ADVICE AND RECOMMENDATIONS

READY TO CONNECT WITH A TOP RATED PROVIDER?

Learn more about SiteMinder

SiteMinder’s platform includes robust and reliable, two-way distribution to over 350 channels, seamless integration with existing booking engines, including SiteMinder’s own booking engine and website builder, and the ability to connect with over 200 Property Management and Central Reservation Systems. The SiteMinder platform further connects with an ecosystem of partners for leading guest acquisition applications such as Email Marketing, Campaign Management, Reputation and Reviews.

stay connected• PMS — The property management system is the central hub for hotel management so it’s

a must that data from the channel manager is being communicated back and forth.• RMS— To accurately and effectively manage revenue and profits, the revenue

management system and channel manager need to share data.• CRS—For seamless operations and a single unified view of property management the

channel manager needs to be feeding data to the central reservation system which then links with other systems.

Browse integrations

MOST INTEGRATED VENDOR

56 verified integrations

Without the right integrations even the best product can add complexity and cost. Make sure any vendor you consider has the integrations you need to set your team up for success.

CRITICAL INTEGRATIONS

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BUYING ADVICE AND RECOMMENDATIONS

Connect with Hapi

Need an integration built for your hotel?

View integrations

CRS

RMSPMS

WHAT QUESTIONSSHOULD a smart buyer ask vendors

Hotel Tech Report | 2019 Channel Manager Buyer’s Guide 19

BUYING ADVICE AND RECOMMENDATIONS

Is pooled inventory available?The only way revenue can be maximised is if all rooms can be advertised across all channels at the same time, which requires pooled inventory.

What’s the scope of integration?A good channel manager should have the ability to integrate with all the hotel’s existing core systems.

Will there be training and support?As with any new system, users will have questions and encounter issues that require troubleshooting, so training and constant support is a must.

Is it contract, commission, or fee based?Ideally for the hotel there will be no lock-in contract or commission based payment model. A free 14-day trial and flat monthly fee thereafter is the best option.

Can it ensure an optimal rate from our direct channel?Have the ability to set rules for your direct channel to ensure it delivers the best value.

Does it offer two-way channel connections?The short answer should be yes. Two-way connection is essential for automation and time-saving.

Does it deliver comprehensive reporting?Knowing which channels deliver the most bookings, which provide the most revenue, and which are the most profitable is paramount to successful hotel management.

Can it manage derived rates?Saves time and reduces the risk of errors by controlling multiple rates from a single base rate.

what to expect

Pricing & budgeting

Implementation timeline

Success metrics

Success stories andadditional resources

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WHAT TO EXPECT

PRICING GUIDANCE TYPE

What are the typical pricing models and ranges that I should budget for?

What does the typical implementation timeline and process look like to go live?

Price range

For channel manager and property management system integration, a fee is incurred during setup.

Installation $150-$300/property

Monthly fees can be as low as $59 for small properties (1-5 rooms). Prices then rise as room numbers increase. The maximum price is $669 per month for a property of 751+ rooms.

Monthly SaaS subscription $50-$1000/month/property

Approximate implementation timelineTotal setup time takes a maximum of four to six hours however this may take place over the course of a few days depending on customer response rate.

There are five key steps to run through on the path to beginning a channel manager free trial. These include an introduction, group training, setup, private follow-up, and set live. Free trials typically last about 2-weeks where the hotelier can test out the full feature set and upon completion can immediately activate their subscription or choose not to invest at no further cost.

IMPLEMENTATION GUIDANCE

SUCCESS METRICS

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WHAT TO EXPECT

HHOW DO I MEASURE SUCCESS?

TOTAL RESERVATIONS AND REVENUE

With more visibility into more new channels and channels that are more optimal to broaden the hotel's reach in new markets, hotels can expect to attract more reservations than ever before. Even a small increase in occupancy rate from the channel manager should have a very positive effect on monthly and annual revenue. Results will vary according to occupancy rate and average daily rate of the hotel.

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OCCUPANCY RATE

It depends on the size of the property and the amount of connected channels. Most hotels can expect an increase of 10% occupancy (or more) after implementing a best-in-class channel manager that gives them easy access to dozens (if not hundreds) of new distr ibut ion channels to acquire guests.

2

PROFITABILITY

By setting direct pricing rules in the Channel Manager, hotels ensure the direct channel always offers the best value. Or stop-sell rooms and packages to maximise profits. Other approaches to improve profits include setting the minimum number of days a booking can be made, or a discounted rate can be selected, prior to a guests’ arrival.

3

SUCCESS stories and further reading

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WHAT TO EXPECT

Case Study: George Hotel Ballarat boosts bookings by 35%A small, historic hotel sought a technology upgrade to drive success.

Case Study: Bookings rise for Peru’s most influential hotel chainPeru’s largest hotel chain needed a new technology provider to remain competitive

Case Study: Independent Greek hotel optimises occupancy and increases revenueAn independent property in Greece needed a technology solution to cope with a surge in tourism.

Case Study: The Fortress Resort & Spa boosts productivity and online bookingsA 53 room resort needed to save time and reduce complexity

E-Book: How to Choose the Best Channel Manager: A Guide for Independent HoteliersE-book to help you identify the best channel manager for your property.

Article: Hotel Management Life Hacks: 8 tips to get the best from your hotel’s channel managerChannel management tips and tricks from the SiteMinder blog.

Webinar: A New Era of Channel ManagementWebinar about current channel management trends and new ways of working moving forward.

E-book: How to use Channel Management Software to Distribute BetterInsights and advice for channel management and channel manager software.

ARTICLE: Channel Management: an ongoing challenge for hotelsTwo-part comprehensive guide to the evolving complexity and necesssity of channel management.

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