What are the best practices for managing online distribution channels and OTAs?

1 Know your channels

The first step is to understand the characteristics, advantages, and disadvantages of each online distribution channel and OTA that you use or plan to use. For example, some channels may have higher commissions, lower conversion rates, or more exposure to certain markets or segments than others. You should also monitor the performance of each channel and OTA regularly, using metrics such as revenue per available room (RevPAR), average daily rate (ADR), and occupancy rate. This will help you identify the most profitable and suitable channels and OTAs for your hotel and adjust your distribution mix accordingly.

2 Manage your rates

The second step is to set and update your rates strategically across different online distribution channels and OTAs. You should aim to maintain rate parity, which means offering the same or similar rates for the same room type, dates, and conditions on all platforms. This will help you avoid customer confusion, dissatisfaction, and price erosion. However, you can also use rate differentiation, which means offering different rates for different channels and OTAs based on their demand, commission, and market position. This will help you attract more customers from different segments and optimize your revenue. You should also use dynamic pricing, which means adjusting your rates according to the changes in supply and demand, seasonality, and competition. This will help you capture more bookings and increase your revenue per available room (RevPAR).

3 Control your inventory

The third step is to manage and allocate your inventory efficiently across different online distribution channels and OTAs. You should use a centralized system, such as a channel manager, that allows you to update your availability and inventory on all platforms in real time. This will help you avoid overbooking, underbooking, and manual errors. You should also use inventory segmentation, which means dividing your inventory into different categories based on their characteristics, such as room type, amenities, or view. This will help you offer more variety and flexibility to your customers and increase your average daily rate (ADR).

4 Optimize your content

The fourth step is to create and update your content attractively and accurately on all online distribution channels and OTAs. Your content includes your hotel description, photos, videos, amenities, policies, and reviews. You should make sure that your content is consistent, clear, and appealing on all platforms, highlighting your unique selling points and value proposition. You should also use keywords, titles, and tags that match the search intent and preferences of your target customers. This will help you improve your visibility, ranking, and conversion rate on each channel and OTA.

5 Engage your customers

The fifth step is to communicate and interact with your customers effectively on all online distribution channels and OTAs. You should respond to their inquiries, requests, feedback, and reviews promptly, professionally, and politely. You should also use email marketing, social media, and loyalty programs to build relationships, trust, and loyalty with your customers. This will help you enhance your reputation, retention, and referrals on each channel and OTA.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?