If you are a hotelier or just manage a hotel unit, then you will already know very well, how important distribution channels are for the sales and development of your hotel.
With classic travel agencies having long since lost their dominant position in sales promotion, a dynamic strategy digital marketing Through distribution channels is the solution you were looking for to promote your hotel.
But how do you choose the ideal distribution channels and how do you shape the right marketing campaign for your hotel property?
In the following article, we will talk about how to best manage your property’s distribution channels, in order to exceed both expectations and the ever-evolving competition in the hotel industry.
Let’s start with the basics.
What are distribution channels for a hotel?
Distribution channels are essentially a system of intermediaries who serve the promotion and sale of a hotel’s services between suppliers/entrepreneurs/owners/hotel managers and consumers/customers.
What is the ideal marketing strategy for hotels through distribution channels?
Dynamic Hotel Website
First and foremost, your hotel website should be the best advertisement for your hotel property. Interested customers who know your hotel through Online Travel Agencies (OTAs) or Wholesalers, Tour Operators, GDS, etc., when they visit your website, should get the confirmation they need in order to make the reservation they are considering.
Pay attention to the SEO of the website, the responsive design and the absolute functionality of the site, so that you have the power to convince the customers you reach through distribution channels. You can further enhance your promotional policy through offers and deals that your customers can only take advantage of by directly booking a room from your website.
Beyond that, the bottom line is in the right combination and smart channel management.
Which and how many distribution channels (OTAS) should I choose to boost my hotel’s sales?
For an accommodation, combining distribution channels is a process that should be done from the first moment. How to make the right choice?
In order for the hotelier to decide how many distribution channels he needs to adequately promote his services, he should check some basic data that characterize the identity, the course of the hotel and its development while still being independent, without the support through online channels.
In the first stage, you should ask yourself:
- What is your type of the hotel?
- Who is the ideal audience, in other words your target group?
- What are the services you offer and what are the wishes of your customers?
Analyze the strengths and characteristics of your brand and infrastructure and look for distribution channels that meet your hotel’s requirements.
How to take advantage of the possibilities offered by distribution channels for your hotel?
Once you have selected the distribution channels you want for your hotel’s promotional platforms,
- You should be informed about their terms, prices, commissions and generally their policy.
- Gather insights into channels’ performances, the audience they’re most successful at, and their strategies.
- Enter all the information a customer needs to get to know your hotel
- Emphasize those elements that make the difference (photos, services, amenities)
How do I check if the combination and strategy in the distribution channels I have chosen for my hotel is effective?
The choice of distribution channels to boost your hotel’s sales should be constantly checked based on sales and overall performance.
Hotel revenue through distribution channels
Control the revenue of your business through the distribution channels you have configured, always in relation to commissions and general sales costs.
If, based on data, you notice that one channel is burdening your budget and net revenue, then you can either change your strategy on that channel or replace it with one that is more compatible with your hotel’s budget and goals.
Distribution channel performance
By making the most of the potential offered by a dynamic distribution channel, your hotel can dramatically increase its success. However, are you sure that channel performance is best suited for your property? To make sure you’re paying commission on a well-deserved distribution channel, you should review its performance from time to time. If a channel isn’t performing, you should check if it’s because of the channel’s inability to reach your intended audience, or your hotel’s inability to make the most of what this online promotion has to offer.
Hotel occupancy and reservations
The indicator of the performance of a hotel’s distribution channels is, of course, the occupancy rates that the accommodation scores throughout the tourist season. If you’re experiencing booking shortages and reduced occupancy at your hotel, even if you’re putting a lot of money into your marketing strategy through distribution channels, it means that something isn’t working in your hotel’s favor.
Find out about the sales dynamics of each channel separately in hotels like yours, with the same or similar target group. If the topic is general, then replacement is a one-way street. Otherwise, modify the strategy, the offers, the overall presence of your hotel through the channels and give the necessary time to gather the new mobility rates based on the new strategy.
Hotels and Distribution Channels: the golden mean
In the ever-increasing competition that characterizes the tourism industry, hoteliers are facing a great challenge that they must handle in the best possible way for the optimal future of their business.Distribution channels offer hotels great opportunities to increase sales and enhance their success, but the relationship between them should be characterized by balance. Every hotel that places its future entirely on the strategies of the distribution channels, surrenders its autonomy, is completely dependent on third parties and increases the risk of total failure of any investment.
Leverage distribution channels as a means of promoting your hotel’s potential and not as the only solution for growth.
