What Is A Channel Manager? All You Need To Know
Blog summary:
- 86% of respondents said PMS, revenue management tools, and Channel Managers are the tools they use most often.
- Is it time to adopt new technology? Only 33% of hoteliers worldwide use a Channel Manager.
- Managing more than three OTA platforms without a Channel Manager increases the risk of overbooking.
A Channel Manager is a digital tool that makes reservation management across multiple platforms simpler for property owners. For hotels, property management companies, or vacation rentals, keeping reservations and availability updated across platforms is important.
Research shows that 86% of respondents identified PMS, revenue management tools, and Channel Managers as their most-used daily tools. This shows how important it is to choose a Channel Manager that fits your needs and start using it.
Managing reservations without technology can be difficult. A Channel Manager organizes this process by connecting availability, prices, and restrictions across all platforms where your properties are listed and sold, updating them simultaneously.
Learn how a Channel Manager works, how to select the right one, and how to use it with other property management tools.
What is a Channel Manager?
A Channel Manager is software that updates availability, prices, and restrictions for online reservations from all platforms like Booking.com, Airbnb, and Expedia. These updates happen in real-time, and all data is integrated into one calendar.
When you connect your PMS (property management system) to a Channel Manager, prices, availability, and reservations are updated on all platforms at the same time. This removes the need to log in to each OTA platform separately.
Reservations received through OTA platforms automatically appear in your calendar, while availability on other platforms updates instantly for booked dates. When you update prices in your PMS, the changes will always reflect on all connected OTA platforms. This also applies to direct bookings—everything is centralized and managed from one place.
Every new booking is sent directly to your central calendar, which is connected to your property management system, without manual input or checks.
Without a Channel Manager, overlapping bookings can happen, which is something to avoid. If you use more than three OTA platforms, integrating a Channel Manager is key to preventing overbooking.
How does a Channel Manager work?
A Channel Manager automatically updates prices, availability, and restrictions for your rental units in real time, using two-way communication between the platforms where you advertise and your PMS.
For example, if a reservation is made for specific dates on Airbnb, the Channel Manager instantly forwards the booking to your PMS and updates availability as booked on all other platforms.
This process happens in seconds and eliminates the need for manual updates, reducing errors and double bookings for the same dates.
Without this automation, property owners need to manually log in to each platform, wasting time and risking last-minute booking conflicts on other platforms.
According to the State of Travel 2024 report by Skift, only 33% of hoteliers worldwide use a Channel Manager. This highlights the opportunity to adopt new technology, as a Channel Manager is one of the most effective tools for improving business management.
What are the benefits of using a Channel Manager?
Using a Channel Manager comes with many advantages. Here are the key ones:
Everything is centralized
With a Channel Manager, you handle everything from one place. There’s no need to remember multiple login credentials—just the one for your property management system.
Reduced risk of double bookings
A Channel Manager significantly lowers the chance of double bookings or scheduling conflicts. All updates are synchronized in real time, removing the need for manual corrections.
Improved efficiency and time savings
Managing reservations takes less time, allowing you to focus more on guests and growing your business. Instead of manually entering data, you can invest time in learning and improving operations.
Increased revenue
If a reservation gets canceled, the property is immediately available for new bookings, increasing the chance of reselling those dates. By linking your Channel Manager with a booking engine, you can also run special promotions and secure more direct bookings with lower OTA fees.
Take advantage of these benefits for your property rental business.
What to consider when choosing a Channel Manager?
When selecting a Channel Manager, keep these points in mind:
Test it before choosing the right one
Try out several Channel Managers before paying a subscription. Pay attention to any potential shortcomings to reduce the risk of choosing the wrong one.
Connectivity with key OTA platforms
Check which OTA platforms the Channel Manager supports. It’s not wise to choose the one that doesn’t integrate with the platforms which are generating you the majority of your revenue. For instance, if most of your bookings come from HRS, keep in mind that the Channel Manager connects with it to avoid missing key opportunities.
Customer support and communication
It’s important to have accessible support in case of issues. Decide whether you prefer chat-only communication or if phone support in your language is more practical.
Integration with a booking engine
If you take direct bookings through a booking engine, make sure the Channel Manager can connect with it. Direct bookings typically lead to higher income by avoiding OTA fees, so this connection is important.
Flexibility
Check how far in advance you can manage prices, reservations, and restrictions. This is an important feature for long-term planning.
Security and reliability
The Channel Manager should provide safe data storage, regular updates, and backups. These features help protect your reservations and revenue.
Reviews and recommendations
Look for reviews and feedback from other property owners or hotels on the Channel Manager’s website, social media, app stores, or review sites. Firsthand experiences can give you insight into potential issues and benefits.
Reports and analytics
Check what types of reports and analytics the Channel Manager provides. Even if these tools seem less important now, they’re valuable for decision-making. Occupancy rates, revenue tracking, and booking trends are examples of insights worth having.
Pricing
Check if the pricing aligns with your budget. Sometimes, spending slightly more on advanced features and better support can save you trouble in the long run.
System scalability
For business growth, select a Channel Manager that supports adding new properties and expanding to more platforms.
A Channel Manager is more than a cost—it’s a tool that improves occupancy rates and helps manage pricing effectively. Focus on functionality, supported channels, customer support, and flexibility while keeping an eye on reporting features and pricing.
How to use a Channel Manager with other property management tools
A Channel Manager works best when integrated with other tools, creating a centralized system that saves time and improves efficiency. It’s an essential part of property management systems and works well when combined with integrations and a booking engine. Read more to find out how you can use it for time-saving management.
Property Management System + Channel Manager
Property management systems (PMS) or reservation management tools are central hubs for managing properties. They handle reservations, pricing, payments, invoices, occupancy, revenue, and analytics, offering property managers everything in one place.
The PMS acts as the central management tool, while the Channel Manager enables two-way communication between the PMS and OTA platforms. This means all data is automatically synchronized between systems, reducing manual errors. For example, if you update pricing in the PMS, the changes are applied across all OTA platforms instantly.
Additional benefits of PMS and Channel Manager integration:
- Time Savings: Manage reservations, pricing, and restrictions from one place, minimizing manual data entry across multiple platforms.
- Improved Guest Experience: Automatic synchronization allows quick responses to reservations and updates, reducing potential issues for guests.
- Detailed Reports and Analytics: Combining PMS and Channel Manager data helps track key metrics like sales, revenue, and occupancy across channels.
Channel Manager + Booking engine
A booking engine lets guests book directly through your website. Linking the booking engine to a Channel manager updates all platforms automatically, boosting occupancy and reducing reliance on OTAs and their fees.
When potential guests browse your listings on OTA platforms, many will look for the option to book directly. This makes OTAs act as a “showcase” while giving you the opportunity to drive direct bookings, resulting in higher revenue.
Benefits of integrating Booking Engine and Channel Manager:
- More Direct Bookings: Direct bookings through the booking engine avoid OTA fees, increasing revenue.
- Lower OTA Dependency: OTAs increase visibility, but direct bookings offer more control and lower fees.
- Saves Time: Automated updates replace manual input, reducing errors.
Channel Manager + Integrations
A Channel Manager, combined with integrations of your choice, is a powerful tool for optimizing property rentals. To take advantage of these possibilities, choose a cloud-based rental application like Rentlio, which supports a wide range of integrations and tools.
Integrations connect the Channel Manager to additional tools, automating and centralizing processes. For example, a smart lock linked to the Channel Manager can automatically generate PIN codes for guests upon reservation confirmation, while revenue tracking tools provide detailed financial reports.
Accounting tools help generate invoices and track payments. Smart locks allow guests to check in without physical keys. Payment systems handle payment processing securely. Maintenance tools track issues and plan inspections. Communication tools simplify guest messaging. Revenue tracking and document scanning tools support better organization and operational processes.
Benefits of connecting various integrations with a Channel Manager:
- Time Savings: Automated processes lower the need for manual input, freeing up time for other tasks.
- Fewer Errors: Data synchronization eliminates manual mistakes.
- Improved Guest Interactions: Quick communication and simplified processes create a better experience for guests.
- Simplified Operations: Business functions are integrated into one system, making management more straightforward.
A Channel Manager is the foundation of successful rental management. It saves time, reduces errors, and simplifies processes. No matter the size of your business, the right Channel Manager helps you increase revenue and avoid unnecessary issues. Start exploring your options today and choose the best one for your needs.
Daniel Herman is a growth marketing enthusiast with 10 years of marketing experience who enjoys thinking strategically and seeing the bigger picture. He writes about everything related to developing marketing activities and KPIs, branding, and taking a long-term approach to success, always with the goal of sharing useful ideas and inspiring action.
