A hotel channel manager is a software that allows hotels like yours to manage their online inventory and rates across multiple booking channels, such as online travel agencies (OTAs), global distribution systems (GDSs), and your website as well. 

By providing real-time updates, it ensures that all connected channels reflect the most accurate and up-to-date information, preventing overbooking or underbooking while maintaining rate parity.

In simple words, a channel manager is your 24*7 assistant in the digital world of bookings. Its primary job is to ensure that your rooms are available and up-to-date across various online platforms like Booking.com, Expedia, Agoda, and others.  

Now, before we dive deeper into channel managers and explore how to choose the right one for your property, let’s understand why you need it.

The Role of a Channel Manager 

Let’s start at the beginning. What’s the deal with channel managers, and why are they crucial for your hotel operations? 

Imagine you have a fully booked weekend, and suddenly a room is available due to a last-minute cancellation. Now, updating this information manually on each of the online platforms would be a nightmare. But fear not! That’s where the channel manager swoops in, making sure that available room is promptly showcased to potential guests across all channels. It maximizes the chances of getting a booking and optimizing your revenue. 

This not only saves you time but also minimizes the risk of overbookings, ensuring a seamless experience for both you and your guests. It’s a win-win! 

So, if your goal is to increase your hotel’s exposure and partner with as many OTAs as possible, this tool is a must. Still not convinced?

Check out 7 Ultimate Reasons Why You Should Invest in A Hotel Channel Manager

Now that we’ve shed some light on the superhero qualities of a channel manager, let’s delve into the nitty-gritty of how to choose the right one for your property.

How to choose the right channel manager for your property?

There are many channel managers in the market. Some are suited to small properties while others are robust enough to handle even large chains. There are certain qualities that all of them need, however, if you decide to research purchase options they should meet these specific requirements. It’s not as simple as choosing the first one you see. 

So, here are some of the key features you must look for before you choose the right channel manager:

Compatibility with Your PMS

Property Management System (PMS) is the heart of your hotel operations. It keeps track of reservations, manages check-ins and check-outs, and handles guest information. So, when choosing a channel manager, make sure it is perfectly compatible with your PMS. 

When your channel manager and PMS are perfectly compatible, it ensures everything runs smoothly without a hitch. A seamless integration facilitates the effortless flow of data between these systems, eliminating the risk of missteps in your daily operations. Room availability, rates, and booking information move seamlessly from one system to the other, preventing overbookings, discrepancies, and the headache that comes with manual data entry.

User-Friendly Interface

You’re not a tech genius, and that’s perfectly okay. Your channel manager should be user-friendly and easy to navigate. A complicated system will only add to your stress, defeating the purpose of streamlining operations. 

This simplicity isn’t just about saving time; it’s about allowing you to channel your energy into what truly matters – providing an outstanding guest experience. After all, your focus should be on creating memorable stays for your guests, not wrestling with a complex system. 

So, look for a solution that allows you to make updates with a few clicks, saving you time for what matters most – providing an excellent guest experience.

Connectivity with OTAs

Not all online travel agencies (OTAs) are created equal. Some cater to specific markets, while others have a global reach. Your ideal channel manager should connect seamlessly with the key OTAs relevant to your target audience. This ensures maximum exposure and a broader reach for your hotel, attracting diverse guests from different corners of the world. 

For instance, Airbnb, a leading OTA renowned for its unique focus on properties, offers a distinct platform for hotels catering to a specific type of traveller seeking unconventional lodging options. By partnering with Airbnb, hotels can tap into a niche market of guests seeking a more personalized and immersive experience. 

When your channel manager is a pro at connecting with these OTAs, it’s like throwing a net into the sea of potential guests. You’re not just getting more eyes on your place; you’re inviting all kinds of travellers, each with their own preferences. 

Real-Time Updates

Time is of the essence in the hospitality business. Your channel manager should provide real-time updates on room availability, rates, and bookings. This ensures that potential guests get the most accurate information, reducing the chances of disappointments and last-minute changes. 

With real-time updates, your channel manager ensures that the room availability, rates, and bookings are in sync across all platforms, including Airbnb. This means that when a booking is made or a room is reserved, it’s instantly reflected everywhere. No more disappointments or last-minute surprises for your guests.

Pricing Structure

We get it – managing a hotel involves juggling various expenses. When choosing a channel manager, pay attention to the pricing structure. Opt for a solution that aligns with your budget and offers transparent pricing. Hidden fees are like unwanted guests – they should be avoided at all costs. 

Imagine you’re setting up your rates for peak season. You wouldn’t want any surprise charges popping up, right? Hidden fees in a channel manager are the same—unwanted surprises that can disrupt your financial flow. So, just like you’d want your guests to trust your pricing, you should be able to trust your channel manager’s pricing too. It’s like creating a seamless experience for both you and your guests.

Mobile App

In a world where we manage our lives through smartphones, having a mobile app for your channel manager is a game-changer. A mobile app allows you to stay in control of your hotel operations on the go. 

Whether you’re away from your desk or handling tasks within the hotel premises, having the flexibility to manage bookings and updates from your mobile device adds a layer of convenience to your daily routine. Check if the channel manager you’re eyeing has a user-friendly and feature-rich mobile app to make your life as a hotelier more agile and responsive.

Training and Support

Transitioning to a new system can be difficult, but fear not! A good channel manager comes with training and support. Ensure that the provider offers comprehensive training sessions to get your team up to speed. Additionally, check for responsive 24*7 customer support – you never know when you might need a helping hand. 

Moreover, consider seeking user-friendly interfaces to simplify the learning curve for your team. A well-designed system can significantly ease the transition process and enhance overall efficiency.

Analyzing Data and Creating Reports

Data is the new gold, and utilizing it can propel your hotel to new heights. A good channel manager should not only manage bookings but also provide insightful data on your performance. Look for a solution that offers robust reporting features, allowing you to analyze booking trends, understand guest preferences, and make informed decisions. 

The ability to generate customized reports ensures that you have a clear picture of your hotel’s performance, enabling you to refine your strategies and stay ahead in the competitive market. 

‘A Complete Channel Manager Buyer Guide For Hoteliers’ 

Unlock the Future of Your Hotel with eZee

Choosing the right channel manager is a decision that can significantly impact your hotel’s success. At eZee, we understand the intricacies of hotel management, and our solution is designed to seamlessly integrate with your operations. With a user-friendly interface, real-time updates, and transparent pricing, we are committed to helping you streamline your processes and enhance the guest experience. 

But the million-dollar question is – Are you still on the fence about choosing the right channel manager for your hotel? Feeling a bit overwhelmed with the options and not sure where to turn? Well, here’s a suggestion: why not try before you buy? 

In hotel management, experiencing is believing. So, give eZee’s comprehensive channel manager a spin and see the difference.

The post Guide to Choose the Optimal Channel Manager for Property Proficiency appeared first on eZee Absolute.

It is when a hotel offers additional services or packages to enhance a guest’s stay. For example; providing exclusive conference room packages, spa services, or even collaborating with local travel agencies for city tours. These supplementary offerings not only open the door to additional income for the hotel but also give guests that extra touch of luxury. 

To put it in simple words, ancillary revenue or additional revenue is like a bonus income that hotels can earn from things besides just renting rooms. Curious about how you can tap into this for your hotel?

We’ve put together a simple plan to help every type of hotelier understand and make the most of ancillary revenue. Whether your hotel is big or small, fancy or cozy, this guide is your secret recipe. 

So, let’s discover how to make your hotel even more successful and profitable!

Understanding Ancillary Revenue for Hotels

Ancillary revenue refers to the income generated by a hotel from sources other than the core room revenue. 

Let’s say, you’re running a hotel. People pay to stay in your rooms, right? But what if you could make even more money by offering them extra things they might want during their stay? That’s exactly what ancillary revenue is all about. (https://andeglobal.org/)  

It’s the money you can make from services and goodies that make your guests’ experience better. Such revenue can come from various sources, including:

• Food and Beverage: Restaurants, bars, in-room dining, and catering services can significantly contribute to ancillary revenue. Offering diverse dining options, themed events, and unique culinary experiences helps attract guests and drive F&B sales.

• Spa and Wellness Services: Spas, fitness centres, and wellness programs can be lucrative ancillary revenue sources. You can promote relaxation and rejuvenation with spa packages, fitness classes, and wellness treatments.

• Parking and Transportation: If your hotel offers parking facilities or shuttle services, consider them as potential revenue sources. Offer valet parking, special packages for long-term guests, or transportation partnerships with local attractions.

• Tours and Activities: Partner with local tour operators to offer guests exciting tours and activities. Whether it’s sightseeing tours, adventure activities, or cultural experiences, these can be a significant source of ancillary revenue.

• Concierge Services: You can charge by offering premium concierge services, such as arranging restaurant reservations, event tickets, or private tours.

• Meetings and Events: Host conferences, weddings, and other events at your hotel, leveraging your meeting spaces and event planning services. 

Now, you might think why is ancillary revenue so important for hotels? Imagine if a hotel only made money from renting rooms. What happens when fewer people stay there or if they pay less for their rooms during slow seasons? That’s where ancillary revenue steps in as a superhero for hotels.

What Are the Benefits of a Successful Ancillary Revenue Strategy?

Now that you understand what ancillary revenue is and why it’s crucial, let’s explore the incredible advantages it offers to all types of hoteliers. 

Whether you’re a seasoned hotelier or just starting out in the hospitality industry, these benefits can make a substantial difference in your hotel’s overall success and profitability. 

• Increased Revenue

One of the most obvious benefits is the additional revenue generated. When you offer extra services like dining, spa treatments, or tours, you can earn additional income on top of what you make from room bookings. This boost in revenue can help your hotel during the off-season or slower times, just like how movie theatres rely on popcorn and snacks to keep profits flowing even when there aren’t blockbuster movies showing.

• Enhanced Guest Experience

Guests love it when you go the extra mile to make their stay enjoyable. You can improve their overall experience by offering various services and amenities. Satisfied guests are more likely to return in the future and recommend your hotel to friends and family. 

• Diversification Of Revenue Stream

Relying solely on room revenue can be risky, especially when the travel industry faces challenges like economic downturns or seasonal fluctuations. Ancillary revenue diversifies your income sources, making your hotel more resilient to these ups and downs. 

Just like how an ice cream shop can struggle in the winter without hot chocolate and cookies on the menu, hotels relying solely on room revenue can face challenges during economic downturns and seasonal lows. Diversifying income with ancillary services helps both businesses stay resilient.

• Community Engagement

Building relationships with local businesses and tour operators for ancillary services can strengthen your ties with the local community. This cooperation can lead to mutual benefits and goodwill, which is great for your hotel’s reputation. 

• Competitive Advantage 

In the crowded hotel industry, standing out is essential. A well-planned ancillary revenue strategy can set your hotel apart from the competition. Unique services and experiences can attract travellers who are looking for something special, even if it means paying a bit more. 

7 Ideas to Generate Extra Revenue at Your Hotel 

Generating ancillary revenue at your hotel requires a thoughtful and strategic approach. It’s not just about offering extra services; it’s about optimizing them to meet the needs and desires of your guests while increasing your revenue. 

So, here are some tried-and-true tactics to help you achieve just that:

• Market Your Ancillary Services

Effective marketing is essential to ensure guests are aware of the ancillary services you offer. Use your website, social media, and email marketing to showcase your F&B offerings, spa services, tours, and other amenities. Highlight any unique features or promotions to entice potential guests. 

• Upselling and Cross-Selling 

Train your staff to upsell and cross-sell ancillary services during check-in or throughout the guest’s stay. For instance, a friendly front desk agent can suggest a spa treatment upon arrival, or a restaurant server can recommend wine pairings during dinner. Staff should be knowledgeable about the services, their benefits, and any ongoing promotions. 

• Create Packages

Create value-added packages that include room accommodations and one or more ancillary services. For example, offer a “Spa Retreat” package that includes a spa treatment, or a “Romantic Getaway” package that includes a candlelit dinner. Bundling services can increase the perceived value and encourage guests to book. 

• Building Partnerships with Local Businesses

Local tours, attractions, and events in your area are always looking to sell tickets, right? Well, why not offer those tickets right here at your hotel? Forge partnerships with local restaurants, theatres, and tour operators to offer exclusive discounts or packages to your guests. 

Showcase and sell local artisanal products in your hotel’s gift shop. Collaborate with local craftsmen, artists, or food producers to offer unique, locally-made items. This enhances the guest experience and also promotes cross-promotion between your hotel as well as local businesses, benefiting both parties. 

• Digital Concierge Services:

Invest in a user-friendly mobile app or online platform that serves as a digital concierge for your guests. This platform can offer services like in-room dining orders, spa reservations, local recommendations, and even virtual tour bookings. The convenience of accessing these services digitally enhances the guest experience and encourages them to explore and spend on additional services.

• Rental Services

If your hotel is situated near an airport or popular attractions, you can provide transportation services. Offer airport shuttle packages or partner with a local car rental service to provide guests with convenient transportation options. 

Or you could offer tech rental services for guests who may need gadgets or devices during their stay. This could include renting out laptops, tablets, or even cameras. Business travellers or tourists on workation may find this service valuable, and you get an extra source of revenue. 

• Host Events and Special Occasions

If you have ample event spaces, consider hosting conferences, weddings, and other special events at your hotel. This helps generate revenue from event bookings and showcases your hotel’s capabilities to a broader audience. Event packages that include catering, AV equipment, and event planning services can be particularly profitable.

Market these offerings effectively through your website, social media, and campaigns to ensure that guests are aware of the additional services available. Each of these ideas generates revenue, enhances the overall guest experience, and creates a positive impact on your hotel and a memorable stay for the guests.

The post Strategies for Ancillary Revenue Success in Hotels appeared first on eZee Absolute.

In a world where choices seem infinite, how does your hotel stand out? How do you make sure guests choose your establishment over the sea of alternatives? Well, the answer lies in the power of a Unique Selling Proposition (USP).

A well-defined USP can set your hotel apart, attract the right guests, and drive more revenue. Wondering how? Look no further.

In this comprehensive guide, we’ll explore what a USP is, why it’s essential for hotels, and how to create an effective one that resonates with your target audience.

But, first things first, let’s understand what a USP really is in the context of a hotel business:

A Unique Selling Proposition (USP) is a distinct and memorable feature, service, or aspect of your hotel that sets it apart from competitors, resonates with your target audience, and delivers tangible value.

A strong USP communicates the unique benefits and value that your hotel provides, making it more appealing to potential guests.

Why is a USP Important for Hotels?

A USP is essential for several reasons. First, imagine if all the hotels looked and felt the same – it would be really tough for potential guests to remember one from the other. A well-crafted USP helps your hotel stand out and be remembered among the sea of options, just like when you notice a unique and special item in a store that leaves an imprint in your mind.

Second, a USP enables you to attract the right guests. By tailoring your unique selling proposition to match the interests and needs of specific groups of people, you can make sure your hotel appeals directly to folks who would really like what you have. This means more people who are excited about staying at your hotel and are likely to have a great time.

Additionally, having a clear USP makes your hotel’s brand stronger. It helps guests understand what your hotel is all about and what makes it different from others. This connection between your guests and the hotel’s offerings can lead to more repeat customers.

Lastly, perhaps most importantly, a compelling USP can have a direct impact on your hotel’s bottom line. It can also convince people to pay more to stay at your hotel instead of somewhere else especially because of your USP.

For example, a hotel near a theme park offers free tickets to the guests for every night they stay. Because of this special perk, guests with families or kids might be willing to pay a bit more to stay at that hotel compared to others in the area that don't offer this advantage.

How to Create an Effective USP for Your Hotel?

Creating a powerful USP for your hotel is more than just a one-size-fits-all task. It requires a tailored approach that considers your property’s unique strengths and the desires of your target audience.

Here’s a step-by-step guide to crafting an effective USP:

• Understand Your Target Audience

Before creating a USP, you need to know who your ideal guests are. Conduct thorough market research to understand their preferences, needs, and pain points. What are they looking for in a hotel? What experiences are they seeking? Such information will be helpful in tailoring your USP to resonate with your target audience.

• Analyze Your Competitors

You can’t craft a unique proposition without knowing what your competitors are offering. Identify your competitor’s strengths and weaknesses to identify gaps in the market that your hotel can fill. Look for areas where you can excel or provide something different.

• Highlight Your Hotel’s Strengths

Every hotel has unique strengths, whether it’s your location, architecture, amenities, or history. Consider what makes your hotel special, and how can you leverage that to create an unforgettable experience for guests. Your USP should build upon these strengths.

• Focus on Benefits, Not Features

A common mistake is to list features as your USP. Instead, focus on the benefits that these features provide to your guests. For example, if your hotel has a rooftop bar with panoramic views, the benefit could be “A breathtaking experience with cityscape views.”

• Keep it Clear and Concise

Your USP should be easy to understand and remember. Aim for a concise statement that captures the essence of what sets your hotel apart. Think of it as your hotel’s elevating pitch.

Let’s say your hotel is located in a picturesque mountain town, and your USP is all about the stunning stargazing opportunities. In that case, your USP could be: “Where Every Night is a Starry Adventure.” This snappy statement not only captures the essence of your unique feature but is also easy to remember.

• Test & Refine

Once you’ve crafted your USP, test it with a focus group or gather feedback from your existing guests. Use this feedback to refine and fine-tune your USP until it resonates perfectly with your audience.

Implementing Your USP Effectively

Creating a USP is just the first step. But, to make it effective, you need to integrate it into all aspects of your hotel’s marketing and operations. So, now let’s talk about putting your USP into action:

• Website and Online Presence

Your website is like your hotel’s online home. So, your USP should be prominently displayed on the website and social media profiles. Use captivating visuals and compelling copy to reinforce your unique selling proposition. For instance; if your USP is all about being a family-friendly hotel near a famous zoo. When people visit your website, they should see pictures of happy families at the zoo right away. This makes them think, “This is the perfect place for our family trip!”

• Staff Training

Your hotel staff should mention your USP in their interactions with guests. Training programs for your staff should emphasize the values and experiences you promise.

•  Marketing Materials

Think about brochures, emails, and social media posts. They all should talk about your USP. If your USP is a romantic escape with beautiful sunsets, your marketing materials should have pictures of couples enjoying those stunning sunsets at your hotel.

• Guest Experience

Now, this is where your USP comes to life. Try your best to consistently deliver the promises of your USP. Whether it’s exceptional service, breathtaking views, or a unique atmosphere, the guest experience should match the expectations set by your USP.

• Guest Reviews and Stories

Encourage your happy guests to share their experiences. Ask them to write reviews or share stories on social media about how your hotel made their stay special. This helps spread the word and shows potential guests what they can expect.

Measuring the Impact of Your USP

Now, the question arises of how to check if your USP is working well. To check the effectiveness of your USP, you’ll want to track key performance indicators (KPIs) such as:

• Occupancy Rates: See if more rooms are getting booked. Are guests interested in your Unique Hotel Amenities or Hotel Signature Services? If yes, this is a good sign that your USP is working.

• Customer Satisfaction: Keep an eye on what guests say. If they’re leaving good reviews and talking about your hotel’s unique offerings, it means your USP is making them happy.

• Market Share: Compare how well your hotel is doing compared to others in your area. If your USP is a hit, you’ll see your hotel outshining the competition.

• Online Engagement: Analyze website traffic, social media engagement, and click-through rates on marketing campaigns related to your USPs.

Adapting Your USP over time

The hotel industry is dynamic. Trends in the hotel industry change, and so do guest preferences. Your USP may need adjustments to stay relevant. Periodically revisit your USP and stay up-to-date with market trends and customer feedback.

If you notice that more and more travellers are looking for eco-friendly options, consider opting for sustainability. Or if you see a growing interest in wellness and health, adjust your USP to highlight your hotel’s fitness facilities and healthy dining options.

By staying flexible and adapting your USP, you can continue to capture the attention of new guests and retain the loyalty of returning ones.

The post Hotelier’s Comprehensive Guide to Unique Selling Propositions appeared first on eZee Absolute.

Well, that’s where “hotel rate types” come into play. They act as the secret ingredient that can help you achieve this fine balance of setting the right price at the right time.

Think of rate types as unique pricing strategies tailored to different scenarios and guest segments. They’re like your toolkit for welcoming all sorts of guests, whether it’s during the bustling peak season or the quieter off-season.

If you’re new to the hotel business or a seasoned pro, understanding these rate types can make a huge difference in your hotel’s financial performance.

In this blog, we’ll break down the various hotel rate types, and how they can benefit your business and provide actionable strategies for you to maximize your revenue and occupancy.

So, let’s dive in!

What are hotel rate types? 

rate types are designed to cater to different guest preferences, needs, and booking behaviours. Each rate type comes with its own set of rules, restrictions, and benefits.

Here are some common hotel rate types:

• Standard Rates: These are the regular rates offered by hotels. They usually come with flexible booking and cancellation policies, allowing guests to make changes or cancel reservations without incurring significant penalties. 

• Non-Refundable Rates: Non-refundable rates are typically lower than standard rates but come with stricter cancellation policies. Guests who choose these rates commit to their reservations and do not receive refunds if they cancel or modify their bookings.

• Advance Purchase Rates: Hotels offer discounts to guests who book their rooms well in advance. These rates encourage early booking and help hotels secure reservations ahead of time.

• Last-Minute Rates: Usually, last-minute rates are discounts offered to guests who book rooms on short notice. They are designed to fill vacant rooms that might otherwise go unsold.

• Package Rates: Package rates bundle room reservations with additional amenities or services, such as breakfast, spa treatments, or tickets to local attractions. These packages provide added value for guests.

• Corporate Rates: Hotels often negotiate special rates with businesses for their employees who travel for work. These rates are typically available to corporate clients and their employees.

• Group Rates: Group rates are tailored for parties booking multiple rooms, such as wedding groups, tour groups, or conference attendees. They often come with specific terms and conditions, including a minimum number of rooms to qualify for the discount.

• Member or Loyalty Program Rates: Many hotel chains have loyalty programs that offer exclusive rates and perks to their members. These rates can include discounts, room upgrades, and late check-out.

Each rate type serves a specific purpose, catering to different guest segments and booking behaviours. Hoteliers can strategically use these rate types to optimize their revenue and occupancy levels, while guests choose the rate type that best suits their travel plans and budget.

Benefits of Using Various Hotel Rate Types

First, let’s delve into the numerous advantages of using various hotel rate types, shedding light on how they not only maximize revenue but also enhance the overall guest experience:

• Catering to Varied Guest Preferences:

Different travellers have varying needs and budgets, and by offering a range of rate types, you can cater to these diverse preferences. Standard rates may appeal to cost-conscious guests, while package deals can entice those seeking value-added experiences. Corporate rates, in turn, cater to business travellers. This diversity ensures that your hotel remains an attractive option for various guest segments, ultimately leading to increased occupancy.

• Boost Occupancy During Off-Peak Times:

Using different rate types can significantly impact your revenue. Through strategic pricing, you can optimize revenue during peak seasons by offering higher rates, and fill rooms during off-peak periods by providing special promotions.

• Enhance Guest Experience:

Package rates that club room reservations with amenities or services such as dining vouchers or spa treatments can enhance the overall guest experience. Guests often appreciate the convenience and value of having everything they need included in one package.

• Compete Effectively:

Having a range of rate types can set your hotel apart from the competition. In a highly competitive market, this flexibility allows you to be agile and responsive to changes in guest preferences and market dynamics. Being able to offer unique deals or negotiate corporate rates with local businesses can give you a significant edge over rivals in your area.

• Ensure Long-Term Viability: 

Diversifying rate types often leads to guest loyalty and repeat business. When guests find rate types that match their needs and preferences, they’re more likely to become loyal customers. This loyalty can translate into repeat bookings and referrals, reducing your reliance on costly marketing efforts and increasing the lifetime value of each guest.

How to Use Different Hotel Rate Types to Maximize Revenue and Occupancy? 

Maximizing revenue and occupancy in a hotel involves the strategic use of various rate types effectively. So, let’s break down how you can use different hotel rate types to earn more and fill up your hotel rooms. 

Start by figuring out the kinds of people who might want to stay at your hotel. Each group of people has different likes and dislikes, as well as how much they can spend. Make sure your prices match what these different groups of people want. Reduce rates during low-demand periods to attract budget-conscious travellers and raise rates during high-demand periods to maximize revenue.

Understand your property’s booking patterns, trends, and guest preferences. Based on that you can adjust your property’s rates accordingly. You can also leverage seasonal promotions and flash sales to generate buzz and boost occupancy during specific periods. 

Hoteliers can also encourage guest loyalty by offering exclusive rates and perks through membership or loyalty programs. Offering competitive group rates and accommodating large bookings can fill rooms during low-demand periods. Thus, different rate types can be adjusted accordingly to maximize your occupancy and drive revenue throughout the season.

Using Automated Tools & Software to Implement Various Rate Types

 A revenue management system (RMS) is a software application that can help you optimize your pricing strategies. RMSs can track demand, forecast occupancy, and set rates automatically. 

An automated revenue management system empowers hotels to make data-driven decisions, adjusting rates dynamically based on real-time factors such as demand, competitor pricing, and historical booking patterns. 

These systems optimize revenue and occupancy by automatically adjusting rates across various rate types. Moreover, reservation management platforms enable hotels to offer a wide range of rate options online, making it easier for guests to find and book the rates that best suit their needs.

A well-implemented revenue management system can be a game-changer for your hotel, automating your complex pricing decisions and ensuring that the right rates are offered to the right guests at the right time. 

“ eZee Mint is one such smart and user-friendly revenue management software that applies intelligent pricing strategies.”

The post Strategies for Maximizing Hotel Revenue through Rate Type Management appeared first on eZee Absolute.

And there’s no hiding that Online Travel Agents (OTAs) are a major source for optimizing their online booking flow.

It is observed that OTAs control approximately 2/3rd of all online bookings.

Then it must be the best friend of hoteliers, right? Indeed! 

But with so many OTAs available, how do you know where to list your hotel? Which OTAs are the best? 

Well, every OTA is best in its own way; however, there are a few that might do a better job and deliver better results. 

So for all the hoteliers reading this blog, here I am sharing some of the best OTA platforms to increase your hotel bookings by manifolds.

Top 9 OTAs to Drive Maximum Bookings

I am listing below the prime OTAs in the hotel industry that can promote your hotel on a larger scale to drive maximum bookings.

Here goes the list:

1. Booking.com

Booking.com is recognized as the global leading OTA platform where more than 1.5 million rooms are booked on a daily basis.

It connects a wide spectrum of accommodations; from apartments, vacation homes, and family-run B&Bs to 5-star luxury resorts, tree houses, and even igloos.

Its website and mobile apps are available in 43 languages which helps accommodation providers to generate a worldwide network and enhance exposure.

But the real treat for hoteliers is that the listing process doesn’t charge you anything. You only get charged if a booking is successfully completed.

In addition, this platform showcases the booking info in a very clear way so that the users get transparency on every detail and policy. This helps establish a strong sense of trust among its users.

2. Agoda

With a strong emphasis on providing customers with cheap or discounted accommodation, Agoda is getting popular among travellers.

It can help your property business to stand out whether it is a hotel, hostel, or any resort. It is preferred for group bookings and packages because it offers flight + hotel bookings at low costs. Therefore, it is an ideal platform to attract international travellers.

Agoda is owned by Booking Holdings (which also owns Booking.com) and it charges between 15 to 20% on successful bookings.

3. Airbnb

Airbnb is a classic choice for small and local properties to boost their booking flow.

And if you look precisely at the contemporary picture, you will see that this platform is gaining popularity among big hotels too.

The reason that guests get attracted to the properties listed on it is – they are personalized, homely, and have a local connection. So if you have a well-furnished property, then Airbnb is the ideal place to land.

Airbnb might drive a few bookings compared to other mainstream OTAs but it ensures longer stays.

Also, it does not charge you money directly—it takes a cut out of every booking which is the lowest among other OTAs, typically 3% of the booking amount.

4. Hotelbeds

With more than 71,000 tour operators, travel agents, and airlines, and 50 million room nights sold annually, hotelbeds is one of the renowned names in the accommodation distribution space.

By listing your hotel on hotelbeds you get all the solutions and tools you need to maximize your room occupancy rates. Additionally, it also offers a wide range of marketing solutions and products that gets your property much-needed attention. Meaning, your hotel gets seen in the right place at the right time.

Over the years, hotelbeds has worked dedicatedly to build strong relationships at both ends of the travel chain to offer products, services, and solutions that help all its client and partners grow.

It can rightly be said that it is one of those platforms that can contribute significantly to maximizing your hotel occupancy and revenue. 

5. Cleartrip

Founded in 2006 as a hotel and air aggregator, Cleartrip is another popular OTA that accommodation providers shouldn’t overlook.

Being one of India’s fastest-growing online travel portals and with hundreds of partners from the travel and hospitality industry, the OTA provides access to a bouquet of offerings and enables people to take that much-needed vacation at attractive prices.

Upon its acquisition by Flipkart, the platform even participated in the Flipkart Big Billion Day event, which was like a travel shopping spree on the Cleartrip website and app as well.

If your hotel is in India and looking for a bundle of services to just boost occupancy but also increase revenue, then Cleartrip should be one of your go-to OTA.  

6. MakeMyTrip (GoMMT)

Established in 2000, MakeMyTrip is a household name in the Indian OTA space and over the years the company has strengthened its offerings extensively. 

It has more than 2.5 million daily users searching for hotels and homestays, making it the preferred OTA for accommodation providers. 

One of the events that made MMT one of the most preferred partners was its merger with Ibibo Group in 2017, making it GoMMT.

Today, GoMMT is a leading travel group in the country, providing a one-stop shop for all accommodation providers.

Whether you own a hotel, villa, resort, lodge, guest house, serviced apartments, hostel, homestay, cottage, or a BnB, you can list your property for free with MakeMyTrip & Goibibo and leverage its best-in-class offerings to maximize online bookings and bottom line.

If your property isn’t listed on GoMMT, there’s no doubt that you’re lagging. So, without further ado, get your accommodation listed on this sought-after platform. 

7. Expedia 

Expedia lures maximum travellers to its platform through the “Best Price Guarantee”!

Yes, it pulls out the cheapest deals for the consumers and hence they love it. And this is why the booking traffic is always massive on Expedia.

Adding to this, it provides everything in one place. Travellers can book their flights, hotels, or packages for their entire trip in one go at an affordable price.

With commission fees between 20% and 25% on bookings, it gives great exposure to increase your hotel presence.

Furthermore, as a fun fact, Expedia is one such entity that owns more than 200 travel booking sites, and over 150 mobile apps and websites worldwide. So, you must understand how this company is still a reigning leader. 

While it’s not practical to list all of them, here are some of the popular ones:

• Hotels.com
• Travelocity
• Orbitz

8. Trip.com

With Trip.com rewards (coupon codes and discounts), travellers get a chance to save on their bookings. This is why it has 400 million users worldwide. 

If an OTA has such a massive following then isn’t it the best match for your hotel? It is!

This OTA lets the customers buy their whole trip at one stop. Whether it is booking a hotel, flight tickets, car rentals, or holiday deals.

The commission rates are also flexible depending on various factors like your property size, location, duration of stay, and so on.

9. eDreams

In quarter one of the fiscal year 2023, e-Dreams reported 4.4 million bookings, which is the highest ever in a quarter and 50% up on bookings compared to pre-pandemic.

This rapid increase in bookings has a hidden fact that it offers up to 40% discount on its vacation packages (flight + hotel).

Here is a little more: If you list your property on E-dreams ODIGEO you can leverage the opportunity of getting exposure through 3 more international brands along with eDreams - Opodo, GoVoyages, and Travellink.

This can help you reach 18.5 million travellers in 46 countries. So think it over!

OTA Listing and Your Channel Manager Go Hand in Hand

Firstly, listing your hotel on OTA platforms can work only if you have a suitable channel manager at your property because that is the source to connect your hotel with any OTA.

With a channel manager, you update your inventory and rates on various channels or OTAs you are listed on. It automates the process of adjusting rates and room availability.

Now, to connect with any OTA platforms including the top ones mentioned above, you need to make sure that your channel manager offers the required integration to do so.

You can check out eZee Centrix, our channel manager, which offers integration with 130+ OTAs, GDS, and vacation portals. 

In addition to this, if you prefer any local OTA platform whose integration isn’t available then you can contact us and get it integrated with our channel manager depending on its feasibility.

The post Top 9 OTAs for Hotels to Boost Bookings appeared first on eZee Absolute.

What I am trying to say here is that there are a lot of underlying voids in a hotel’s operational aspect that goes unnoticed. And these are the ones that cause major damages.

One such void is a Broken Pricing Strategy.

No idea what is it?

Suppose you have implemented some sort of tactic in setting your room prices. But for one reason or the other, it isn’t driving any results.

You still believe that your strategies are fine and perfect. But your rooms are not getting sold, your revenue is going down, and whatnot.

And instead of fixing this, you’re focusing on other factors.

This is exactly what happens when hoteliers fail to notice pricing blunders.

So, before you come up with some “supreme” pricing strategy to win the war, first you need to find out why things aren’t working. Meaning, you must carry out an evaluation of your hotel pricing strategy.

And that’s exactly what I am going to help you with in this article.

Why Do Hotels Need a Pricing Strategy?

What’s important for a hotel to sustain and scale?

Good revenue!

And how can hotels ensure that their revenue is fine and dandy?

By selling more rooms at the right price!

However, not every hotel achieves this. Because either they don’t have the proper knowledge of setting room prices or they don’t simply care. Most of the time, it’s the former one.

If a hotel wants to make a better profit, all while ensuring guest satisfaction, they need to have a proper game plan in terms of pricing.

If I put it simply, a strong pricing strategy is a sure-shot indication towards an increase in ADR, RevPAR, overall revenue, and growth.

What if Your Strategies Aren’t Working Right?

Have you been making mistakes in your hotel pricing strategies? And you are now wondering what could be the worst-case scenario?

Let me tell you what worst can happen.

It will take a serious toll on your revenue.

Every room in a hotel has the potential to bring a good amount of money. All it takes is the right approach and utilising the best of the strategies.

For instance, there’s a concert happening in your locality. People from all around the country are flocking to witness the rock band performing. Furthermore, almost every hotel is getting sold out.

But you still have a few rooms left.

Now, how are you going to price them? Just like how you used to on a daily basis? Or would you increase the price based on demand?

I think you know the answer.

This is just an example to show you the potential of your rooms.

Now, if you think that this strategy is not doing justice to the guests, then you’re wrong. You can always up your experience based on the price you set.

Furthermore, you’re already aware of the expenses of running a hotel. It’s huge. Be business-minded and think of making a profit as well. After all, you have to sustain and scale your hotel business.

How to Identify if Your Pricing Strategies Are Broken?

There are various pricing strategies for hotels, but that doesn’t mean each of them would work. At times, some of the pricing methods turn out to be useless and impact the hotel’s revenue.

In this section, I am listing all those points that would help you determine whether your strategies are working or broken.

Read all of them and see if you have any of them in place in your hotel.

1. Not maintaining rate parity

Rate parity is the practice of maintaining consistent room rates across all the distribution channels of a hotel. Meaning, the price displayed is uniform across all the OTAs, irrespective of the commission a hotel pays to bring bookings. 

It is a prominent element of a hotel’s distribution and pricing strategy. It provides price transparency to potential guests and helps in developing brand trust.

Now, those who are against rate parity, saying it costs business; I want to tell them that there are ways to tackle it. And in one of our blogs, we have explained the A-Z of rate parity. Do give it a read because it is sure to change the way you look at rate parity.

2. Not performing market and compset analysis

Irrespective of the size and type, every hotel needs to know about the current happenings in the market and how its competitors are faring.

What I mean by this is that hotels must perform a compset analysis. That is, looking at hotels in your same area and price range, and evaluating their services against your own products.

A proper compset analysis helps you make informed decisions regarding your room prices and drive more bookings.

So, if you haven’t done any sort of competition analysis so far, then you’re certainly lagging. Because not keeping an eye on your competition is considered to be one of the major mistakes when it comes to hotel pricing strategies.

3. Setting prices that aren’t in line with various segments

One size might fit all but not one price!

The price for corporates, independent travellers, groups, etc. can never be the same. They will always differ from each other; be it in terms of volume, frequency of guests, cancellation ratio, or whatsoever.

Let me give you an example.

Hotel Royale charges $80 for a room to independent travellers. But when it receives group bookings, the price goes down a bit. Why is that the case? Because group travellers book more rooms and they often stay a bit longer.

Further, chances of upselling and cross-selling are also more for hotels.

That is why the rooms are usually sold at a lower price compared to regular bookings.  

I think you can now see where things were going wrong for so long at your hotel. Never mind, let’s check the other points and identify more broken pieces.

4. Focusing on profit and not guests’ experience

To be honest, this should go without saying. Overlooking guests’ experience is one of the mistakes in hotel pricing strategies.

But I know many hotels would not actually take it seriously, that is why I am re-emphasising it.

The first and foremost priority of a hotel is always guests. No matter what, a hotel should always take the extra mile in delivering a fantastic experience to its guests.

Now, talking about the pricing aspect, whatever you charge for a room should always feel low to a guest when they stay with you.

Meaning, your services should be so fantastic that the guests must feel they got a great deal.

I bet, when you start thinking of guest experience and not profit, any price you set, it would automatically become effective.

5. Not analysing and comparing past sales with current sales

Numerous hotels around the world don’t practice this, whatsoever. They feel it is irrelevant and requires a lot of their time.

This shouldn’t be the case, at all.

A hotel needs to analyse its performance of the last few years in terms of revenue.

When you do that, you get a clear picture of how the business has fared so far. If your sales aren’t spiking this year, then you can take a cue from past years’ strategy.

Furthermore, you as a hotelier also need to see if your revenue is meeting the forecasted sales target. If not, then learn why; what are the voids, what went wrong, etc.

6. You have no strategy in place for cancellation

You cannot let anyone take your business for granted. Period.

Cancellations are one of the major elements that impact a hotel’s bottom line in an unwanted manner. Which is why hotels need to consider having a robust cancellation policy in place when working on their pricing strategy.

A well-planned non-refundable cancellation policy can not only help you reduce the loss but also increase your revenue.

For example, you can significantly set low prices for longer stays but with a condition that there’s no refund in case of cancellation. Further, you can also have your own set of rules to maximise both guest satisfaction and your overall bottom line.

7. Not using any sort of upselling and cross-selling

A pricing strategy without upselling and cross-selling is incomplete. Period.

Didn’t get it?

Let me help you understand.

Upselling is about encouraging guests to spend more. And one of the best examples is to offer guests a room upgrade.

Talking about cross-selling, it is about additional purchases. You can offer your guests some additional services along with the room at a price.

Now, take a moment and think if you have these included in your pricing strategy. Yes? No?

8. Loyal guests need a different pricing

Loyalty needs respect. And this goes for loyal guests as well.

If a guest comes to your hotel, again and again, you must ensure that it remains the same. And one of the best ways to do that is by offering special prices to him/her.

When you do so, you drive a sense of appreciation and it results in attracting repeat reservations and earning revenue.

How Can Hotels Fix Broken Strategies?

Now that you have learned how to determine whether your pricing strategies are broken, it’s time to know how to fix them.

The best way to make things work at your hotel and increase revenue is by incorporating revenue management.

Yes, here we are again. Because it is worth it and there’s no denying it.

Be it deploying a revenue management system or opting for a revenue management service, you need to have it in your hotels.

Using hotel revenue management, you can analyse internal data, market supply, customer demand, and more to optimize pricing and inventory. It helps hoteliers in calculating the ideal rates for rooms and maximising the bottom line.

I have written various blogs that show how revenue management can transform your hotel and boost your sales.

I am linking all of them below.

• Revenue Management is the Need of the Hour
• Benefits of Using Revenue Management Software at Your Hotel
• In-house vs Outsourced Hotel Revenue Management
• Challenges Hotel Revenue Management Software Can Solve For You

Read all the blogs whenever you want and make the best decision for your hotel business. I am sure they are going to give you a whole new perspective when it comes to revenue management. 

The post Have You Ever Evaluated Your Hotel Pricing Strategy? appeared first on eZee Absolute.

Google hotel search has been extremely useful for hotels from the get-go. To top it up, Google this year announced that they are introducing free booking links (FBL).

This is indeed a game-changing move in the hotel industry and is already bringing a major change to the online distribution landscape.

However, despite all the benefits of Google free booking links, it seems there are still a huge number of hotels that aren’t moving to it.

When I got to know about this scenario, the first thought that came to my mind was I have to talk about it. Because the competitive edge Google FBL presents is great and hotels must make the most out of it.

So, keep reading on as I cover all the aspects.

What are Google’s Free Booking Links (FBL)?

Free hotel booking links is a new program by Google that allows hotels to display their direct booking rates and availability on Google hotel (meta) search. Further, this enables travellers to compare a property’s room rates across various platforms.

Meaning, this new feature or program by Google has the potential to help hotels in driving more direct bookings, bypassing the costly commission fees charged by OTAs. 

Scenario Before Google FBL

I am sure many of you might be wondering, “wasn’t it always been the same?” And these thoughts are legit. Because MANY hotels still aren’t aware of what Google FBL are and how they work.

So, if I go on to answer those questions, then, it WAS NOT.

In the past, accommodation providers had to pay a certain amount to run a ‘Google Hotel Ad’ if they wanted to be displayed for direct bookings on Google. But this has changed significantly.

Hotels now don’t need to pay to get featured in the comparison prices section.

“We’ve seen that users find hotel booking links to be highly useful, and partners find them to be a valuable source of potential customers,” reads Google’s official announcement.

“Now, we’re improving this experience by making it free for hotels and travel companies around the world to appear in hotel booking links, beginning this week on google.com/travel. With full access to a wider range of hotel prices, users will have a more comprehensive set of options as they research their trip and ultimately decide where to book.”

The search giant also mentioned that one of the major benefits of google free booking links is that it will extend the reach of existing Hotel Ads campaigns. Moreover, a new set of tools are also going to be introduced for hotels to provide their rates and availability directly, eliminating the technical complexities. 

The Reason Free Hotel Booking Links Came into The Picture

First things first.

Google cares about the user experience.

There’s no denying to this. And this is the same reason why GOOGLE is GOOGLE.  

The search giant has already stated that the entire shebang of free hotel booking links is to help travellers easily find the best rate and hotel, and also help hoteliers drive more direct bookings.

However, if you think from a business perspective, there’s much more involved than just this.

Google is no less than a godfather for hotel businesses worldwide. However, all these years, it has operated as an ad agency, generating clicks and driving traffic. But now it is actively looking to expand in the travel and hospitality industry.

But then again, online travel agents (OTAs) have a strong grip here. And if Google wants to come to the top, it will have to offer something that has never been done before; and free booking links are doing just that.

Google is not only helping hotels (of every size) get a competitive edge over the big sharks but also marking its territory in the hospitality domain.

There is absolutely no doubt that the benefits of google free booking links are tremendous. And with that, soon, Google will become the go-to platform to book a hotel and other travel-related services. After all, when it comes to invading verticals, Google can do it better than anyone.

Why Hotels Are Still Not Moving to Google FBL?

Now, let’s address the elephant in the room – why are so many hotels still refraining from getting their hands on Google FBL?

I have been writing about all the happenings in the hotel industry for quite some time now. I could see that hotels not turning up to free booking links is a fact.

The major reason behind this is that OTAs have been at the forefront for a long time and even hotels have invested enough in them. Hotels that aren’t betting on Google FBL still think that OTAs are the dominant reservation channels.

Another reason is a huge number of hotels don’t have in-depth knowledge about free booking links. Despite being a part of the hotel meta search, properties are not really sure how this new feature is going to help them excel.

Moreover, when I am saying knowledge about free booking links, I also mean that hotels aren’t sure of how to join. And when they don’t get the correct guidance, they tend to overlook and do away with it.

This shouldn’t be the case at all. 

Hotels that are shying away from Google free hotel booking links must take out time to understand the whole concept.

Google is creating a crowded field, forcing OTAs to up their level if they want to compete with the search giant. It has been predicted that soon Google with its magnificent wave of innovation is going to make most OTAs irrelevant in the travel industry. 

So, it’s definitely time for hotels to reconsider their decisions.

eZee to the Rescue

If you don’t know how to get started with free booking links on Google, then don’t fret. eZee got your back.

Properties can enrol for the free hotel booking links program only through Google’s authorized integration partners. And this is where eZee comes in.

eZee, the global #2 hotel PMS provider is onboarding its existing customers and all future customers onto the Google FBL platform, unlocking a myriad of commission-free booking opportunities for the properties.

Being an authorized Google free booking links integration partner, eZee gets your hotels’ direct rates positioned at the top of the Google meta search listing. Not to mention, its booking engine, eZee Reservation, helps hotels in acquiring direct bookings from Google, without any hassles.

We have also hosted a webinar with Google experts who talked about the nuts and bolts of FBL. 

Watch:

The post How Can eZee Help Hotels Onboard Onto Google Free Booking Links? appeared first on eZee Absolute.

In this blog, I will be touching upon all the aspects related to it, along with some tips to do your hotel’s room inventory management effectively.

What is Hotel Room Inventory Management?

Room inventory management is allocating your property’s room nights evenly without compromising the resulting revenue. If done correctly, it can help you maximise your hotel’s sales and minimise unsold room nights.

It’s one of the important tasks where the sales and front office staff have to work conjointly, since both departments manage various sources of bookings.

However, I’ve seen many hotels allocate inventory vaguely, without proper analysis. Let me share my experience with you. 

I used to work for a well known OTA as a hotel contracting specialist. This involved onboarding accommodation facility providers, updating their saleable room inventory, and running promotions on their listings.

But when asked to share the inventory count, many hoteliers would say random numbers. Budget hotels usually took this kind of approach due to low room count; and filling rooms is a priority than the sources. 

Such casual behaviour towards room inventory management by hotels can lead to various problems. Let’s discuss why you should be doing it in the first place. 

Why Should Hotels Focus on Room Inventory Management?

Room nights are perishable inventory, hence hoteliers have to channelise the sales through various sources like websites, OTAs, social media platforms and offline sales.

To achieve 100% occupancy or at least 60%, the room inventory needs to be distributed strategically. If you under-allocate your rooms on any of the platforms, you tend to lose last-minute bookings from that channel.

On the other hand, if you over-allocate the inventory, you may end up with various sold-out cases in your bucket. 

Apart from that, uneven distribution of room inventory will impact your targeted annual revenue, depending on your unsold nights. 

How to Distribute Room Inventory of Your Hotel?

Well, now that you know why your hotel’s room inventory management is a vital process, here are some tips that can help you in doing it effectively. 

1. Analyse Sources of Bookings

Begin with gathering information about your hotel’s sources of bookings, both online and offline. Make a list of all the on-ground partners, OTAs, social media pages, and other online channels along with the business they have provided to you. 

It’s better if the data is on a day-to-day, MTD, and YTD basis. Once you have the statistics, align them in descending order.

Based on this, you can distribute the inventory to gain maximum business from top providers. But that doesn’t mean you can ignore the other ones that have not performed well.

You can redesign your strategies, work out on offers, and approach those platforms in a new way.  

2. Check Performance On OTAs

Here are some statistics from Statista on OTAs’ contribution to the hospitality industry that are sure to blow your minds: 

That’s huge, I Know. And considering the pace at which the hospitality industry is going digital, OTAs would be a trillion dollar industry. 

So, do keep a check on the business generated from OTAs. Also, see which are popular amongst travelers and register your property on them. 

In case if you find any platform where the booking inflow is low, contact your property/account manager. Additionally, for the time being, keep the room inventory count low for that source. 

3. Invest Time in Guest Segmentation

Whilst you are focusing on sources of bookings, do not forget the different types of guests. It’ll help you allocate room inventory in a better way.

For instance, if your property is a business hotel, then the majority of your guests would be corporate employees. Hence, you can dedicate a higher count of room inventory to the partnered organisations.

Or, if you are a resort which is preferred by large groups and families, then your focus should be on offline travel agents, tour guides, event and trip planners. 

Similarly, you need to determine your audience and share your hotel’s room inventory with sources of bookings accordingly. 

4. Ease Out The Task With Technology

Room inventory management is definitely a tedious task, as you need to update the available inventory on a regular basis for all booking channels. Also, remembering passwords for all the dashboards is another challenge.

However, technology has made this task easier for hoteliers. With the help of a robust PMS and right channel manager, you can do this in a couple of minutes. You just need to check if the former one supports easy integration.

Further, if you need more clarity on factors to consider before opting for a PMS, here’s a complete guide for you. 

Another reason to use these software is automation. Because of that, updating room inventory as closed during sold-out situations becomes easier. 

However, I’ve seen many hotels marking themselves as sold-out on OTAs during peak season to facilitate maximum direct bookings. 

I would say don’t do that. Instead, you can smartly channelise it through offline sources. 

Didn’t get it? Let me explain. 

5. Don’t Forget Offline Sources

Travel agents have been an integral part of the hospitality industry for a long time, even before the internet came into existence. 

However, with OTAs in the picture, these travel agents lost their hold on the market to a great extent. In fact, the ones dealing in the B2B segment had to get themselves online to promote their business. 

Hence, many hotels prefer online booking platforms over travel agents. But, let me give you an insight. 

Even though OTAs have larger discounts, when it comes to booking a group or family trip, guests still prefer going to travel agents for packages. Especially during peak season, they reach out to trip planners to get an end-to-end solution.

So, while you update room inventory for online platforms, allocate some to offline agents as well. Just invert this process during peak periods.

Trust me, this tip will definitely come in handy during your hotel’s room inventory management.

6. Promote Last-minute Booking

One of the trending ways that hotels approach to achieve 100% occupancy is promoting last-minute bookings. This is the last strategy to be followed during your hotel’s room inventory management. 

The reason I kept it for the end is that if not done correctly, this technique can backfire. I even have a relevant example to prove it. 

When I used to work in a known OTA, one of my clients activated a last-minute offer to get maximum bookings. However, he failed to put an end date for the same. 

This resulted in bookings being made at discounted rates for the entire week, leading to a loss of around ₹30,000. Since they made the error at the hotelier’s end, the property had to honor the reservations. 

So you see, if you are resorting to last-minute bookings to achieve 100% occupancy, ensure you do it in the right way. Here’s a blog you can refer to for the same. 

How to increase last-minute bookings?

How to Do Your Hotel’s Room Inventory Management on OTAs Effectively?

As I said earlier, OTAs hold a majority share in the online booking market. And you need to have robust planning to manage them effectively. Because if you go with your hotel’s room distribution haphazardly, it’s going to affect your revenue. 

Here are some tips on how to do it properly. 

1. Update Inventory for Longer Duration

First of all, you need to understand that not everyone makes spontaneous travel plans. Some people plan for later too. 

For instance, many events like sunburn, travel fest, and food fairs are scheduled at the start of the year. Hence, people attending such events need to plan their stay accordingly.

Not only such events, long weekends and holidays also fall in this list. That’s why, it’s better if you update your inventory for a longer duration.

Websites like Booking.com, Expedia, and other renowned OTAs allow you to update your hotel’s room inventory for 1 year. This means that if guests are trying to book a stay at your property even for 6 months later, they can do that. 

But, don’t forget to update your hotel’s tariff too for that duration. 

2. Bring Revenue Management Services to Aid

These days, a lot of hoteliers are opting for revenue management software (RMS) or hiring revenue managers. It helps them in shrugging off the burden of calculating, updating, and monitoring rates every moment.

Apart from this, revenue managers guide you on:

• Booking platform that provides good business
• Packages that your hotel should promote
• Offers that can help in increasing business
• Improvements needed to bring an influx of bookings
• Other opportunities to maximise your annual revenue

Basically, a huge part of a hotel’s business development is transferred to revenue managers, which they handle efficiently with help of RMS and, of course, their experience. 

To help you learn more about this topic, here’s an archive of some of our best blogs on RMS. 

Learn Everything About Revenue Management Here

3. Ensure Rate Parity Across All Channels

As I said above, that I was working with an OTA, another challenge we faced on a regular basis was rate parity. And this was a big problem; not only for luxury hotels, but also for budget properties. 

The reason being, every OTA has a different commission structure. Generally, it ranges from 8 to 25%. Hence, it’s obvious that hotels would update higher tariffs on platforms where they shed more commission. 

However, displaying different rates on portals can result in uneven business flow. For example, if you update a tariff of 100 USD on Booking.com and 125 USD on Go-MMT, guests would prefer the former one. 

Which means, your booking flow from the latter one will go down, and eventually due to rate discrepancy you’d lose a source of business. That’s why it’s vital that you maintain rate parity across all the platforms. 

4. Update Proper Cancellation Policies

Another factor you need to consider during your hotel’s room inventory management is cancellation policies. It’s no secret that guests tend to cancel travel plans at the last moment. 

It can be due to some change in plans, intriguing deals at other properties, or some unexpected circumstances. In either of these situations, it’s the hotels who suffer the loss. 

In fact, this is more problematic when the bookings are at pay at hotel mode. Therefore, when you allocate inventory on OTA, ensure that you update cancellation policies. 

Pro-tip: Keep a zero or 50% refund policy if the bookings are cancelled less than a week before the check-in date. In this way, you’d be able to avoid huge losses and have ample time to get those unsold rooms booked. 

5. Keep a Check on Cut-off Periods

For the final check, keep your cut-off period for a minimum of 1 day and maximum of 3 days. Now, if you are unsure of what the cut-off period is, let me tell you about it. 

Cut-off period is the time set by hotels up to which the guests can book their stay. Post-that the inventory would be shown as sold-out. 

Let’s say you’ve updated the cut-off period as 3 days. This means that guests can book their stay up to 3 days prior to their check-in date. However, if they want to reserve a room on the same day, your property would be shown as sold-out. 

This part is useful if you plan to up-sell your inventory or facilitate direct bookings. However, if you’ve a lot of unsold inventory, update the cut-off period as -24 hours. It will enable you to fetch last-minute bookings. 

This part is useful if you plan to up-sell your inventory or facilitate direct bookings. However, if you’ve a lot of unsold inventory, update the cut-off period as -24 hours. It will enable you to fetch last-minute bookings. 

The post Optimise Your Hotel’s Room Inventory Management For Better Occupancy appeared first on eZee Absolute.

Basically, it was way more complicated to reach guests.

Fast forward to today, guests can browse between hundreds of websites and travel agencies that feature property details and hotel availability. Despite the internet making hoteliers’ lives easier – it’s easy to get lost as hotel distribution strategy grows more complex. 

What’s the best way to decide which channel to use? Should your hotel work with all of them, or is one enough? 

This article will help you find answers to these questions as we cover the essential elements that go into building a profitable hotel distribution strategy.

What is a Hotel Distribution Strategy?

Hotel distribution strategy refers to the mix of channels through which you sell hotel rooms. Often, this strategy will be based on the acquisition cost per customer of the various channels through which you can reach your guests.

These channels include:

• Online Travel Agencies (OTAs), like Booking, Expedia, or Agoda;
• Hotel direct channels: website, phone, emails, social media;
• GDS – Global Distribution Systems;
• Wholesalers;
• Metasearch engines like Google, Tripadvisor or Trivago;
• Destination Marketing Organizations (DMO);
• Offline bookings, like walk-ins.

Ultimately, an effective distribution strategy should aim to increase hotel visibility and target the right customer segments for your property. 

Why is building a distribution strategy for hotels is essential?

Simply put, more visibility, more bookings, and better reviews mean more chances for success. 

Creating the right strategy is vital to:

• Increase revenues
• Attract the right customers
• Improve reviews

What are the Types of Hotel Distribution Channels?

The distribution landscape consists of both online and offline channels. Below we’ve described some of the most popular distribution channels in the hotel industry.

Online travel agencies

OTA’s are websites where potential guests can search for accommodations, check prices, and book rooms. There are hundreds of OTAs, from the major ones like Booking.com or Expedia to the niche websites like BringFido (designed for guests seeking pet-friendly accommodations).

To list on OTA’s, hotels pay commissions ranging between 15%-25%, from each booking. The bright side of selling on OTA is the ability to enter markets that would otherwise be harder to reach. 

For example, hoteliers can attract travellers from South America via Despegar or South Korea on Ctrip. 

Despite their reach and convenience, there’s a love and hate relationship between OTA and hotels. This is mainly due to the fact that OTA’s take high commissions for listing and selling hotel inventory. On the other hand, OTA’s give properties more exposure and make them easier to find. 

Plus, have you heard about the billboard effect?

Must Read: Who’s Really Winning The Battle Between OTA and Direct Booking?

The billboard effect

Did you know that up to 35% of direct hotel bookings result from travellers finding the property on a third-party website? 

A significant number of customers will first find a hotel on a website like Expedia and then book directly through the hotel website. That’s the billboard effect – without which you would potentially need to spend more money on advertising and search engine optimization tactics to improve your page ranking on Google.

Direct channel

Direct channels include hotel websites, social media, emails, walk-ins, and phone bookings. You don’t need to pay any commission for direct bookings, but you do need to add the costs of maintaining a website and booking engine.

GDS

A Global Distribution System is a network used by travel agencies for researching and booking flights, hotels, and cars for clients. Examples of GDS’s are Amadeus or Sabre. Any hotel using a GDS will be connected to multiple travel agencies which will then refer guests.

Wholesalers

A wholesaler is essentially a middleman between a hotel and an OTA or travel agency. They purchase rooms for specific dates in bulk at discounted rates, wrap them in a package, and sell them to the OTAs, travel agents, or tour operators.

Metasearch engines

In recent years metasearch engines like Google have become more critical to the hotel distribution landscape. A metasearch scans through OTAs and hotel websites and shows travellers hotel rates on different channels for their chosen dates.

As Google is one of the first places where travellers will hit the search button, it’s no wonder that the search giant now plays a key role in hotel bookings. What’s more, with the ability to list hotel booking links on Google for free, hotels can be more competitive versus OTAs and can increase their direct bookings.

Embracing this growing metasearch trend could play a key role in your property’s distribution strategy. 

DMOs

Destination Marketing Organizations are the organizations in charge of promoting a given city or country. Partnering with them usually includes the ability to feature hotel info on their website and social media as a preferred accommodation partner. 

How to Build a Profitable Hotel Distribution Strategy?

A successful strategy will include a mix of channels. To choose the proper channels for selling  your inventory, you’ll need to take these next points into consideration:

1. Get to know your best guests

When we talk about choosing the right distribution channel in the hotel industry, we mean choosing the one through which your target guests are looking to book. 

But to make sure you get those bookings, you need to know who your guests are first. 

To do that, you can use your Property Management System (PMS), channel manager, and booking engine data. 

For example, if your guests are budget travellers you can include OTAs like Hostelworld in your strategy. But if a large number of your guests are from South Korea, then their most popular channels are Agoda, Ctrip, or Booking.

If you have different types of guests, you can create a range of different value propositions. A family with kids won’t look for the same features in your hotel as a business traveller. Knowing that you need to choose the channels where those different guest types book and offer them what they are looking for.

2. Set business objectives

It’s always a good practice to set clear business goals in order to identify your most profitable channels and include them in the distribution mix. So, what are your objectives?

Is it to fill in the rooms during the low season? To reach more international markets? To diversify your distribution and stop relying on one channel? Or,  do you want to be able to fill last-minute vacancies quickly?

Your property may want to create a specific atmosphere, and not all channels might bring the type of client you want.

Setting clear business goals can be a great help in deciding which channels to include in your strategy.

3. Track customer acquisition costs 

What’s the point of selling rooms on a specific channel if the costs are higher than the profit it brings? 

Sometimes the price for hotels to acquire a guest is more than double the room rate. It’s important to quickly identify and eliminate ineffective channels from your distribution strategy. 

So can you know which are effective and which are not? 

To evaluate channel effectiveness, you will need to understand the costs of guest acquisition. The hotel industry uses the NetRevPAR metric to monitor it. 

If you’re scratching your head right now and wondering what that is, here’s a quick explanation:

NetRevPAR is the revenue per available room after deducting the costs incurred to acquire a guest.

Calculating this metric will tell you how much net revenue you’re receiving from each booking.

The formula for it is as follows:

NetRevPAR= room revenue – distribution costs (e.g.,cost-per-click + marketing + third-party commissions) / available rooms

4. Invest in a direct channel

There’s no doubt that the direct hotel channel should be a priority in any hotel’s online distribution strategy. Neglecting it will undoubtedly result in lost (commission-free) revenue opportunities. Direct channels include hotel websites, booking engines, and social media strategies.

You need an easy-to-navigate and attractive website 

Your website will be a guest’s first contact with your hotel, so make sure it’s aligned with your brand and objectives. 

Importantly, around 70% of travellers did travel research on mobiles. 

Conclusion? Make sure to optimize your website for mobile phones.

Google research has also shown that over 25% of consumers across a  range of markets and industries mention pain points like availability, payment issues, and customer support when they shop online. It’s good to keep this information in mind and facilitate the booking process on your website in order to make it as simple as possible for guests to book a room.

In addition to a great website, you’ll also need a good booking engine, which allows guests to check availability and make reservations with instant confirmation. Want another good idea? Adding a chat function to your website can help potential guests quickly resolve any doubts or questions that arise on their booking journey. 

Don’t forget about socials

Investing in direct channels includes an aligned social media strategy. In fact, digital content inspires 65% of next-gen (millennials and gen Z) travellers to plan a trip. So many travellers these days reference Instagram or Facebook to check out a hotel and decide if it’s the right choice. Don’t neglect social media as you risk losing potential guests who rely on it to inform their decision-making.

5. Review strategy

Once you increase online visibility, reviews are inevitable – and can be extremely valuable. The review strategy you put in place should go hand-in-hand with your hotel’s online distribution strategy and revenue strategy. 

Online reviews can help increase your rankings and popularity and will influence the value of your offer in the eyes of potential customers. Of course, it would be a dream to always receive positive feedback, but you understand the reality as a hotelier. 

There will be some negative reviews, and so you should be prepared for them. Respond to and address every negative opinion, as these can hurt your hotel’s reputation. 

6. Use dynamic rates across all channels

Implementing dynamic pricing across all your channels will significantly increase your competitiveness. 

Dynamic pricing means adapting prices on each booking channel based on availability and demand. When demand and occupancy are high, instead of closing availability on a specific channel out of fear of overbooking, increase your prices. In times of low, reduce your rates to drive more bookings.

7. Maintaining price integrity

When using dynamic pricing in your hotel’s online distribution strategy, remember to maintain price integrity. Avoid colossal price drops to fill your empty rooms. Some customers can see be put off by seeing rock-bottom prices: it makes them wonder if it’s too good to be true. 

What’s more, keeping the price integrity can help you in protecting the customer base. Avoiding unwanted types of guests results in a better hotel atmosphere and happier clients.

Additionally, when you drastically lower rates, you may not turn a profit despite filling your rooms. The cost of attracting a guest and maintaining the room may end up being higher than what the guest actually paid. For that reason, make sure you factor in those other costs to determine if the decision will be profitable or not. 

Hotel Distribution Strategy and Technology

To implement an effective hotel distribution strategy need the right set of tools. These tools can include a channel manager, booking engine, PMS, revenue management system, rate shoppers, and a reputation manager. Of course, it’s not obligatory to have all the tools for hotel distribution management. You might consider starting with the first three mentioned and adding the rest along the way.

Channel manager

A channel manager connects your property to all your chosen distribution channels. It will help you effectively manage your inventory and avoid overbookings. You can adjust room prices from the channel manager, set stay restrictions, and build pricing strategies.

Booking engine

A booking engine connects to your website and channel manager. It allows website visitors to check room availability and make reservations directly with you. What’s more, when the booking engine connects to payment getaways, customers can be charged immediately upon making a reservation.

Property management system (PMS)

A PMS is a system used to manage your property as a whole. You can say it’s like the heart of a hotel– it includes a listing of all rooms and reservations, guest details, as well as housekeeping schedules and property details. It gives hotel managers valuable insights in the form of a range of reports: bookings, occupancy rate, revenues, and availability. Nowadays, most PMS’s are cloud-based, meaning there’s no need to install any system directly on your computers. 

When combined, a PMS, channel manager, and booking engine can greatly improve hotel operations as they work together. 

Revenue management system (RMS)

Hotel distribution strategy should also align with revenue management strategy. In the current competitive environment, it’s essential to use real-time market data to inform your prices across all selling channels. 

Setting your prices manually takes valuable time and can be extremely frustrating. In an environment where demand changes so quickly, you need to react just as fast in order to capture the maximum amount of revenue. Fortunately, technology can be a great help here as well: RMS’s like Pricepoint connect to your channel manager, scan hotel and market data 24/7, and automatically send optimized prices to all your channels in real-time. 

There’s no question that using an RMS can give you and your property a competitive edge. It is without a doubt a must-have hotel distribution management tool. 

An RMS reacts instantly to changes in demand and pushes optimized prices to your OTA’s. Meanwhile, competitors setting prices manually will be left behind – and they’ll leave potential extra revenue behind as well.

Reputation management systems

Reputation management systems help you create an overview of your online reviews across all booking channels. It generates a summary of your overall reputation and enables you to easily identify areas where there is room for improvement.

The post How to Build a Profitable Hotel Distribution Strategy? appeared first on eZee Absolute.

I remember when my family decided to visit Jammu and Kashmir, I had to Google for properties in every single city. Then, read all reviews, check their prices, check the location and property pictures. And when I was not happy, I had to check another hotel and go through the whole shebang.

For someone who doesn’t even get up from the bed to turn off the lights, you think I would do so much just to book a hotel?

It’s not my cup of tea at all!

But, I came across something that made things really simple. Now, I don’t have to juggle multiple Google searches to find a hotel that fits my needs. I can check and even compare multiple hotels on one single platform. 

Yes, I am talking about Hotel Metasearch Engine. 

And this blog is going to be all things metasearch engines and how hotels can make the most out of it.

Let’s get to it.

What are Hotel Metasearch Engines?

Let me help you understand what a meta search engine is with an example.

For instance, you want to buy a new smartphone. Now, instead of checking out every mobile brand website, you can explore all of them on Amazon. You can check specifications, prices, and even compare them on one single platform. Isn’t that convenient?

A hotel metasearch engine works the same way. Travellers enter search terms and the engine delivers search results that include hotels from various online travel agencies (OTAs) and other booking sites all in one place.

That’s not all. Travellers can also compare those hotels (based on any factor) to find the one that suits their preferences best.

Furthermore, here’s a piece of additional information.

If you notice, I have mentioned it as ‘Hotel Metasearch Engine’ on the subheading and not just ‘Metasearch engine’. And if you ask why, it’s because there are metasearch engines available for almost every domain. You can literally compare anything from clothing to electronics to airfare.

I don’t want you to go to some electronics metasearch and look for hotels.

(Okay! That wasn’t funny. But never mind)

The Role of Metasearch in the Hotel Industry

Every hotel wants to be seen easily by travellers.

And metasearch engines present hoteliers just that. It provides a platform to advertise their hotels.

Over the years, the importance of metasearch engines has increased in the hotel industry. During the initial days, they weren’t able to grab a great share of the pie. But today, the picture is vastly different.

According to a report, about 72.5% of travellers use metasearch engines to find a hotel to book. 

You can imagine how much of an impact it has made in the industry. And I am sure that you now understand why your hotel should be using metasearch.

So, if you have been shying away from adding metasearch to your booking channels, then I must say, it’s high time.

Hotel metasearch engines make it extremely easy for your guests to find your property. And the more visibility you have, the more likely you are to drive revenue.

Difference Between Metasearch and OTA

MANY people think metasearch engines and OTAs are the same (if not the same then at least similar to a great extent). However, that’s not the case.

The major difference between the both is that OTAs sell inventory and metasearch engines don’t. 

The main focus of OTAs is to reduce the work for travellers. Hence, they allow travellers to book directly through the OTA website. While metasearch lets guests compare hotel rates from various sites

Here’s a table for your better understanding:

But! There’s always a BUT.

Things are sort of changing. Certain metasearch engines are now displaying booking buttons to let travellers book directly from the metasearch results. And this is mostly because of the emerging opportunities in the industry.

Again, there’s a downside to this as well. In one of my previous blogs, I have mentioned that OTAs gather guest details that SOMETIMES bother hotels. And with this new feature by metasearch engines, the scenario could become sort of similar.

But that’s a completely different story. 

For now, let’s focus on the topic at hand.

Tips to Make the Most Out of Metasearch Engines

Now that you have learned about metasearch engines, let me help you with some tips to increase bookings through hotel Metasearch.

#1 Optimize your booking engine

This one goes without saying, but still, let’s discuss it quickly.

When I talked about the differences between metasearch engines and OTAs, I mentioned that metasearch engines don’t sell inventory. Rather, they redirect travellers to the hotel website.

But can a hotel acquire direct reservations without a booking engine (or a booking engine that isn’t effective)? It’s unlikely!

The basis for increasing direct bookings in a hotel is an optimized booking engine. Meaning, you need to ensure that you have a booking engine on your website that is absolutely well-structured.

• It should support other devices such as mobile and tablet bookings
• It must be user-friendly
• It must include proper room and rate structure
• The booking process should be as simple as possible
• It should also include a secure payment gateway etc.
• Must support or work in sync with Google’s free hotel booking links

These are just some of the points to consider. However, when you go about optimizing your booking there are a lot of other things involved.

Do let me know if you would want me to write a dedicated blog on booking engine optimization.

Also, if you’re planning to get one for your website, here’s something that can help you out:

#2 Choose the right metasearch engine

There are several metasearch engines available for hotels. But it is imperative to pick the ones that best suit you.

First things first, when you pick a metasearch engine to get listed, make sure they have a good reputation in the hospitality industry.

Apart from that, determine which all metasearch engines have a good reach. The better traffic they have, the higher chances you have of showing up on their search results.

#3 Optimize your metasearch listing

When we talk about optimizing metasearch listing, it is sort of similar to optimizing an OTA listing. But before jumping right into the optimization aspect, I have something more to add.

Why should you optimize your listing? Because, better content will result in higher guest engagement, thereby maximising your bookings.

And, how can you do that?

• Ensure that every detail in your metasearch engine is updated.
• Upload high-quality photos of your property.
• Maintain your room rate integrity (we will talk more about rates going forward).
• List all the amenities you have in your hotel etc.

Further, if you’re wondering why I haven’t listed a point on ‘reviews’, it’s because metasearch engines show ratings based on reviews across the web.

Meaning, you have to make sure you have good reviews on other platforms (such as OTAs).

Also Read: Importance of reviews and hotel review management

#4 Maintain rate parity

Many platforms take rate parity seriously. And hotels must take it the same way because there’s more than just grabbing the top spot in listings.

Just in case you aren’t aware of rate parity, it is the practice of offering consistent room rates across different distribution channels.

But why should you bother about it? Playing in the hotel metasearch engine space is all about driving more direct bookings. And when you have a strict rate parity on all channels, you not only build trust among your guests but also push them towards your website to make a booking.

I also want to address the fact that when a hotel works with an OTA, it’s kind of unfair for hotels to set rate parity because of the commissions. But let’s keep that for some other day.

#5 Monitor constantly

I cannot put enough emphasis on the constant monitoring of your metasearch performance.

Further, by monitoring, I mean keeping an eye on every aspect of the metasearch platform. Because sometimes metasearch sites often test new formats and even the most subtle changes can have an impact on your hotel’s bottom line.

For example: If a metasearch site changes the way they display hotel information and adds a section for a specific amenity, you have to be quick enough to notice it and make changes to your listing content. Otherwise, there are chances that you’ll be filtered out of search results by people looking for that specific amenity.

#6 Ask for help if you are struggling

If you are struggling to optimize your metasearch game, do not shy away from seeking help.

Many hotels don’t invest in professionals who can help them with metasearch results. They either feel that these sites don’t deliver results or they don’t believe in the fact that a professional works much effectively.

However, that shouldn’t be the case. It is always advised to work in collaboration with someone who knows the nuts and bolts of the metasearch space.

FAQs

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