April 12, 2022
In the fast-paced and competitive realms of travel and hospitality, the success of vacation rental businesses hinges on effectively managing several crucial operations across a variety of platforms or online travel agencies (OTAs). To do this, agencies need to use a robust channel manager.
As the bridge between vacation rental businesses and multiple OTAs, a channel manager plays a pivotal role in streamlining operations, maximising revenue, and ensuring an always-positive customer experience. However, not all the channel managers available in the market are necessarily worthwhile, particularly if your business owns a large number of properties or deals with short-term vacation rentals. If you’re shopping for a vacation rental channel manager or a similar solution, be sure to only shortlist the ones that offer the following features:
Channel integration is the primary purpose of a channel manager. Given this, the solutions you shortlist should offer seamless integration with the most number of OTAs, including the most used major brands. Also make sure the solutions you’re looking at are able to integrate with channels that are most relevant to your specific travel industry niche. Solid multi-channel integration should prove invaluable for expanding your reach and attracting a broader audience.
One of the most important features to look for is real-time inventory and booking management. If you manage multiple properties, the ability to view booking statuses across different OTAs and other channels can be crucial, preventing overbooking and ensuring full property utilisation.
Real-time inventory and booking management also ensure a better experience for potential visitors discovering your properties over OTA websites. A channel manager with this feature can be set up to automatically update room availability, rates, and promotions, immediately incentivising potential guests to book a stay at one of your properties.
Maintaining consistency in pricing across all channels is vital for customer trust and repeat business. Channel managers with rate parity monitoring capability can be set up to adjust prices to align with your desired strategy, preventing disparities between OTA sites and other channels that can negatively impact your agency's reputation and revenue.
While dashboard design doesn’t seem like a particularly important feature, an intuitive interface can make all the difference, especially if you’re handling multiple properties across several channels. A well-designed centralised dashboard makes it much easier to perform channel management activities and requires less time to train on, saving you time and reducing the possibility of human errors.
Simpler report-generation processes allow you to make informed business decisions in a limited timeframe. Peak seasons can be incredibly hectic for agencies, for example, and the ability to get data on performance metrics and reservations fast can be a lifesaver when you’re understaffed.
Effective channel managers can easily automate the reservation and confirmation processes, reducing manual workload and minimising the risk of errors. Automated communication with guests, along with instant booking confirmations prevents overly long wait times, ultimately enhancing the overall experience and keeping potential guests from making alternative arrangements.
Look for channel manager options that offer flexible rate and inventory controls. In particular, single out solutions that permit dynamic pricing, seasonal rate adjustments, and the ability to implement restrictions or promotions across OTAs and other channels. This level of flexibility makes it possible to instantly respond to market trends and guest activities while also doing away with the need for tedious manual setups.
Understanding the performance of each channel is essential for optimising strategies. Better channel managers can provide insights into each individual channel’s performance, conversion rates, and booking patterns, permitting you to refine your approach and allocate resources effectively.
The vast majority of your bookings are likely to originate through online channels like OTA websites, creating serious security challenges in the handling of sensitive customer data and financial transactions. It only takes one data breach to seriously damage your business’s reputation, so make sure to exclude any channel manager solution that does not comply with or lags behind in industry standards for data protection.
As your business grows, it may start to outgrow some of its existing tools. Replacing these can be an expensive and time-consuming process which is why you want to make sure your next channel manager can scale up according to your business’s future requirements.
Try to prioritise solutions that let you add as many properties as you need to accommodate future vacation rental acquisitions. Also, see if your shortlisted channel managers can integrate with travel and hospitality management tools that you already have or plan to acquire, such as payment gateways and customer relationship management (CRM) software.
Given the outsized roles that online travel agencies and other online channels have in ensuring the visibility of your rental properties, picking the right channel manager will directly impact the success of your agency. Collectively, the above mentioned features can contribute to a streamlined, revenue-optimised, and customer-centric approach that ensures continued operations even in an increasingly crowded hospitality and travel landscape. More importantly, the heightened customer experiences enabled by the right channel manager should help contribute to positive brand recognition and repeat business down the line.
