Hotel distribution channels play a crucial role in maximizing the visibility of hotels and helping them to achieve higher occupancy rates. Over the years, the dynamics of hotel distribution have evolved, and various channels have proven effective for different types of establishments. Here’s a look at some of the most effective hotel distribution channels and how they drive results.
1. Online Travel Agencies (OTAs)
Platforms like Booking.com, Expedia, and Agoda are among the most prominent OTAs in the hotel industry. They offer a vast inventory of hotels, appealing to travelers who want a one-stop-shop for their accommodation needs. For hotels, being listed on these platforms ensures enhanced visibility to a global audience. While OTAs typically charge a commission for every booking, the volume of potential guests they bring to a hotel often offsets this cost. Moreover, newer or less-known hotels can benefit immensely from the credibility and exposure these platforms offer.
2. Direct Bookings through Hotel Websites
With the right marketing strategy, hotels can drive a significant amount of traffic to their official websites. Direct bookings often mean higher profit margins for hotels, as they can bypass commissions paid to intermediaries. Additionally, a direct channel allows hotels to have more control over the guest experience, from the booking process to post-stay communication. Investing in a user-friendly website, with intuitive design and secure payment options, is crucial to converting website visitors into guests. Learn how to budget and drive direct bookings in 2024.
3. Global Distribution Systems (GDS)
Historically one of the primary distribution channels, especially for chain hotels and luxury establishments, GDS connects hotels to travel agents around the world. It’s a computerized network system that allows real-time reservations and inventory management. While the prominence of GDS has waned somewhat with the rise of online platforms, it remains a significant channel for targeting corporate travelers and travel agents.
4. Meta-search Engines
Platforms like Kayak, Skyscanner, and Trivago aggregate hotel prices from various sources, allowing travelers to compare prices and choose the best deal. By listing on meta-search engines, hotels can be part of the comparison and potentially drive direct bookings. However, it’s essential for hotels to maintain rate parity to ensure that their direct booking prices are competitive with OTA prices.
5. Social Media and Mobile Apps
In an era dominated by digital technology, platforms like Instagram, Facebook, and dedicated hotel apps have emerged as potential booking channels. These platforms allow hotels to engage with potential guests, showcase their amenities, and even drive bookings through integrated reservation systems or promotional campaigns.
Your Balanced Multi-Channel Strategy
In conclusion, the efficacy of a hotel distribution channel often depends on the hotel’s target audience, location, brand reputation, and marketing strategy. While OTAs might be more effective for budget hotels or new establishments, luxury chains might find more success with GDS or direct bookings. A balanced multi-channel strategy, tailored to the hotel’s unique needs and audience, often drives the best results.
Contact Blue Magnet Interactive and we’ll provide a free audit of our recommendations for your hotel. We can go through the goals for your hotel and help you determine the right marketing mix to help you achieve those goals.
