Hoteliers, now more than ever, need to concentrate on revenue and distribution management. The industry not only faces corporate budget tightening, but flight costs have increased and the decreasing value of world currencies plus job uncertainty has affected tourists’ spending budgets.
Channel Management is Fundamental to Hoteliers
Hoteliers, now more than ever, need to concentrate on revenue and distribution management.
The industry not only faces corporate budget tightening, but flight costs have increased and
the decreasing value of world currencies plus job uncertainty has affected tourists’ spending
Last year, more travelers continued to book their travel using web booking engines. The
success of Online Travel Agents (OTA) and the expansion of the online/offline press
referring people to internet led technologies have enticed consumers to the cyber travel
Hence, it is the priority of any hotelier during this time to ensure yields and occupancy
remain high, making the most of the sales channels available to maximize revenue over the
coming years. With reports that RevPAR is dropping, hotels need to think intelligently and
maximize on the tools they have to ensure the business remains strong.
Today, consumers are influencing room rates more than any time in history. The internet –
with multiple price comparison websites and booking channels – provides a choice. The
savvier consumers get; the more likely rates will continue to fall. However, if hoteliers take
control of their presence and rates online, revenue managers can make more accurate
forecasts to identify occupancy and rate levels to ensure sales are on target. In 2016 hotels
were managing an average of TEN third party websites to distribute rates and inventory, five
years on and the average is 25.
The challenge for many hoteliers in managing these channels is to ensure accurate rates and
inventory allocation to optimize each channel to increase sales and maximize revenue. There
is no point selling across the internet for the sake of being online; it must be approached
intelligently to avoid the mismanagement of rates. To make the most of the internet and
online distribution channel revenue managers should look at technology to save time and
By utilizing cloud-based tools to