Best Channel Management Software in 2023

What Is Channel Management Software?

Channel management software or Channel Manager, is a centralized platform used in businesses related to the hospitality sector like hotels, bed and breakfasts. This software serves as a central hub for managing bookings and listings across various online platforms.

Streamlined through a unified dashboard, hotel channel management software automates updates in real-time, reflecting changes in availability, pricing, and restrictions instantly without any manual intervention.

With this multi-channel listing software in place, guests can enjoy a smooth experience, irrespective of how they made their booking due to its sophisticated features that ensure precise and synchronized reservations.

Who Uses Channel Management Software?

Channel management software is extensively used among hospitality business owners and individuals responsible for managing room bookings in hotels or inns. These tools seamlessly integrate with hotel reservations software or hotel channel management software, making bookings to align effectively with the other hotel operations.

Channel management systems can also collaborate with diverse marketing software to enhance bookings across different channels. This technology enables efficient coordination and optimization of bookings, catering to the dynamic needs of the hospitality industry.

How Does Channel Management Software Work?

Channel management software functions as a means to uphold accurate and synchronized booking information across multiple online platforms. Upon making alterations to your central calendar or adjusting nightly rates via the channel management dashboard or integrated system (like PMS / CRS), these modifications are automatically propagated to all interconnected booking websites. In the case of a new reservation from an OTA (Online Travel Agency), the Channel Manager records the booking in tandem with your PMS or CRS. Consequently, the availability of the booked room is promptly restricted across all distribution channels. The same procedure applies to cancellations.

From a technical viewpoint, the Channel Manager employs a two-way XML synchronization mechanism to establish connections with each channel's extranet. It forwards Availability Rates, and Inventory (ARI) updates to the channel and as it is a two-way synchronization, reservations and cancellations are imported into your Channel Manager, PMS, and/or CRS dashboard. This seamless flow of information eliminates the potential for discrepancies or overbookings. Notably, in a one-way sync scenario, reservations or cancellations won't be brought into the system. However, with advanced channel management tools, updates take place in real-time.

Channel Managers employ a method called the "pooled inventory model" to avoid incorrect rates and double bookings. This approach consolidates inventory into a unified location, guaranteeing that all bookings draw from a shared pool based on real-time availability updates to and from the Property Management System. This centralization of inventory effectively eliminates the risk of overbooking since the same room cannot be reserved by two distinct websites.

Why Use Channel Management Software?

Managing your inventory manually by individually connecting to each channel's extranet and updating availability, rates, and inventory can be inefficient and susceptible to errors. However, by employing a reliable channel manager, you can experience significant advantages. This includes;

Increased market reach: Using channel management software significantly enhances the exposure of your property to a wider range of potential travelers. This software facilitates easy connections with new booking sites, requiring minimal investment of time and resources. This accessibility enables properties of all sizes to expand their presence across global regions and target specific segments of travelers, which was traditionally challenging through manual management.

Higher ROI: Adopting a channel management solution optimizes existing inventory, leading to improved returns on sales and marketing efforts. Advanced pricing strategies like pooled inventory, discounts, non-refundable rates, and upsells boost revenue management. Furthermore, shared inventory offers additional income streams while automation eliminates the risk of inadvertently booking the same room twice.

Real-time updates boost search performance on OTAs, elevating property rankings through accurate Availability, Rates, and Inventory (ARI) data. Consistent, up-to-date content ensures better visibility and a higher ROI for establishments.

Optimal distribution: A smart distribution strategy is important for cost-effective operations. Channel management software aids in selecting sales channels, allocating inventory, and refining the mix for specific goals.

The combination of various OTAs, metasearch platforms, B2B wholesale platforms, and niche accommodation booking sites ensure targeted visibility for the right kind of guest. By adopting this diverse approach, properties can effectively cater to different traveler preferences and booking behaviors.

Money and time savings: Using a channel management platform simplifies distribution management across channels. Without it, manually updating Availability, Rates, and Inventory (ARI) on different interfaces is time-consuming and costly. The software's overview empowers hoteliers to gain more control over distribution costs, optimizing them by favoring cost-effective channels and shifting inventory strategically for efficient gap-filling.

Key Features of Channel Management Software

Channel management software covers three fundamental tasks that significantly contribute to efficient channel management:

• Allotment: At its core, a well-structured channel management strategy involves a strategic combination of high-performing sales channels. The role of a channel manager is to dynamically allocate your property's room inventory according to your specific objectives. This dynamic allocation ensures that your rooms are distributed optimally across different channels, thus maximizing your property's reach and potential for bookings.
• Channel mapping: Channel management software simplifies room management across sales channels through "channel mapping." It matches room types to each channel's format, ensuring consistent presentation. This sync integrates with your Property Management System (PMS), preventing duplication and manual work. Uniform room presentation enhances the guest experience.
• PMS update: One of the pivotal tasks of a Channel Manager is its ability to directly connect with your hotel's PMS. This connection serves as a real-time link for the exchange of rate and availability data between your PMS and the various booking websites you list on. This seamless connection ensures that every new reservation is efficiently integrated into your PMS, without requiring any manual intervention. As a result, your operational efficiency is enhanced, and the risk of errors is minimized.

Benefits of Channel Management Software

Here are some benefits associated with channel management software:

• Data configuration: Multi-channel management software serves as a comprehensive data generator, amalgamating information from various management tools like hotel management software and vacation rental software. This rich dataset empowers the hospitality sector to adapt its strategies in response to shifting customer preferences. By concentrating efforts on specific markets and segments with the potential to boost occupancy and property revenue, this software enhances the industry's ability to respond effectively to evolving trends and guest demands.
• Integrations: Another noteworthy benefit of channel management software lies in its integrations with existing property tools. It directly communicates data to sales and room control teams, automating flow to key systems like property management, guest services, and revenue management. This seamless integration bridges the gap between online distribution and on-site operations, streamlining overall processes.
• Sales data: A key capability of a channel manager lies in its ability to gather data from various platforms. This data provides insights into direct bookings, guest experiences, and communication effectiveness. This information guides future sales efforts and aids in refining marketing campaigns, ensuring they align with customer preferences and yield better results.
• Market intelligence: Multi-channel manager compares property inventory performance against competitors. Varying software suits diverse needs; for instance, coastal rentals differ from bed and breakfasts. Real-time inventory updates and automated occupancy data allow users to analyze channel performance. This insight aids in strategic decision-making and fine-tuning distribution strategies.

Top Channel Management Software (Table with Features & Pricing)

How to Choose the Right Channel Management Software: Factors to Consider?

Choosing the best channel management software involves critical factors for reliable connections to numerous booking sites with high uptime. Here are key considerations;

• Connectivity: Leading channel management platforms stand out by offering sophisticated API connections featuring seamless two-way synchronization. This means that data updates occur in real-time via cloud-based technology, eliminating on-property infrastructure needs for flexibility and speed. These platforms handle high booking volume, establishing a reliable foundation for efficient operations.
• Channel partners: Always go for a provider that establishes connections with diverse booking sites and global markets. This ensures your property can engage with travelers from around the world. Seek options that include prominent Online Travel Agencies (OTAs), niche OTAs, meta search engines, and GDS options. Also, check for any extra fees or commissions for expanding connectivity.
• Functionalities: Prioritize user-friendliness and simplicity in the software. Choose a product supporting self-service and intuitive operation. Look for advanced features such as payment processing, multi-currency support, comprehensive reporting capabilities, the provision for multiple users with distinct roles, and more.
• PMS & Booking engine integration: Ensure smooth integration of the chosen channel manager with your current hotel management software, particularly your PMS and direct booking engine. This synchronization across management systems streamlines operations, minimizes errors, and optimizes time usage.