What is the best CM, channel manager, for your hotel?
Over the decades, many different and extremely interesting technological advancements have been observed and enjoyed. Similarly, many of these technological advancements were in the field of traveling and the travel industry in general. One of these technological advancements in the Channel Manager that has been invented for even further convenience. The channel manager is a technology that has been created mainly for large hotel chains. Channel managers help and aid the hotels in managing the hotel overall, it helps in saving a lot of time and it also helps in maximizing profits. Profit maximization is one of the main aims and objectives of every other organization regardless of what field it is operating in, that is why channel managers are extremely attractive for the people who run hotel chains. But not only profit maximization, but it also has many other benefits such as expanding the reach of their hotels and increasing the levels of occupancy.
One of the greatest advantages of having a channel manager within your organization is that it gets extremely easy for you to manage all your inventories and keep all the other organizations updated that are affiliated with you. What this means is that it saves up a lot of time and hassle that you might have to put into your organization to keep everything updated. For example, if your hotel is affiliated with a particular travel agency, it is important to keep that particular travel agency updated about the level of your inventories to avoid any inconveniences such as overbooking. Having a channel manages also saves up a lot of time as everything will be automated and nothing will be done manually along with saving a lot of hassle and thought. Another big advantage of investing in a channel manager is that it gives you a lot of power and authority to make decisions that are best for your hotel. It also removes the factor of unpredictability. For example, you will know exactly how much revenues are allocated to what part of your organization, that way you can make better decisions about revenue allocation and come up with different strategies that can benefit your organization in the short and long run.
Approximately 50 percent of the hotels worldwide use some sort of channel manager. If your hotel is planning on investing in a channel manager, some important factors need to be considered before making this decision. The first and most important factor that needs to be taken under consideration is the level of connectivity between your hotel and different intermediaries along with the efficiency and effectiveness of the communication that is taking place between them. If you are unable to communicate and connect with your supplier, different airlines and travel agencies, that means that you need to come up with a system that keeps people within your organization and people within the affiliated organizations constantly up to date. One of the main reasons why this is so important is that removes the factor of uncertainty and helps you avoid overbooking. It also helps you keep track of all of your inventories and helps you manage them better.
Another major factor that needs to be considered is the size and the occupation of your property. What this means is that the size of your hotel will have a massive impact on the operations and how different things are being looked after. In other words, the larger your property is, the harder it is to make decisions about it and making sure that everything is running smoothly. This is an extremely important factor because if your hotel chain is very large, it is most likely earning a large number of profits but on the other hand, it is also a possibility that making decisions is equally, or even more, harder than it would have if your hotel chain was not that vast. This also means that even a single incorrect decision of yours or even the smallest of the mistakes can have a very big impact on your hotel chain. Having that said, it is important to analyze the size of your property and then invest in an appropriate hotel manager to improve your decision-making skills and avoiding all the problems or errors that could result in negative consequences that your hotel might have to face.
You should be very well aware of the needs and requirements of your hotel along with all the errors that need to be corrected to make a wise decision about choosing the appropriate channel manager. You should always make sure that the channel manager you choose consists of three main factors which are the following
- Property management system – This can help you gather and save all the data. A property management system is extremely important as it is the hub of a channel manager.
- Revenue management system – This will help you keep track of the revenues being earned in a specific period along with the level of profitability of your organization.
- Central reservation system – This can help you in keeping track of your inventories and can greatly help in avoiding the problem of overbooking.
If all of these three systems are a part of the channel manager that you choose and if the chosen channel manager is meeting all the needs and requirements of your hotel, then you have most likely made a wise and correct decision regarding investing in an appropriate channel manager.