Hotel Distribution Strategy – Building a Strategy for Your Hotel Distribution

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Hotel Distribution Strategy – Building a Strategy for Your Hotel Distribution

Effective distribution is fundamental to the long-term health of your hotel. Let’s look at an effective hotel distribution strategy, which helps create an optimal channel mix, and tips for making sure you’re getting the most out of your channel manager.

Today, hoteliers appreciate unprecedented visibility and the ways to reach the guests where they shop. Potential customers are now able to do a lot more research on places to stay and quickly compare prices across multiple hotels.

However, increased exposure is only the beginning of the process. A more important job is to convert the the spectators of the bookers. Whether reservations come from OTAmetasearch, your website, mobile or phone apps, you can maximize profitabilityy for your hotel by implementing a differentiated distribution strategy.

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

1) Channel management and visibility

Maximize reach without breaking the bank is a constant dilemma for hoteliers. In today’s hyper
competitive environment, leveraging the reach and marketing spend of OTA (right channel mix) for increase
your request is an essential part of the modern hotel distribution strategy. A channel manager helps not only
you remain in control of the management of your channels; acting as a data warehouse, it is also a crucial tool to help you make
informed decisions about it channel mix.

2) Understand your acquisition cost

Don’t go on face value; drill down into channel insights to understand the true cost of each channel.

3) Define your target audience

It is important to understand who your guests are with a view to providing relevant offers and customer experiences
and find the right channels to reach them.

4) Focus on direct bookings

Since a booking engine on your property’s website is usually commission-freeyour direct bookings end up at
higher profits and increased revenue for your hotel. Although you may need to partner with OTAs through the channel
manager, in order to attract certain types of customers, you will start earning more direct bookings as
customers discover your brand on their own.

5) Your website

Your website is the most profitable way to market your property and generate commission-free bookings through a
booking engine attached to it. Ensure the website and booking engine are optimized deliver should be a
priority for each hotelier.

6) Intelligent tariff planning

Leverage information from your channel manager, booking engineand PMS to keep a flexible daily rate for
maximize returns and increase your bottom line. You can even incentivize making advance reservations now with
flexible cancellation policies. Another rate variation you can apply is seasonal rates.

With these tips for building a profitable distribution strategy, your property will increase both bookings and revenue. The success of your property is in your hands.

Each hotel has a optimal distribution channel mix – which means that the channels are selected and managed in such a way as to generate optimal profitability for the hotel in the long term. This is unique to each hotel and depends on several factors such as location, brand presence, etc.

  • With market data under your belt, you’ll earn more informed decisions.
  • Forecast and pricing is more scientific and effective when based on accurate data.
  • IDidentifier factors that influence channel traffic and earnings are easier.

This article is taken from STAAH’s ebook on How to Setup a Channel Manager Like a Pro

This article was originally published by STAH. For more hotel tips, trends and news, click here.

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