Let’s start with first understanding: What exactly is a distribution channel?

A distribution channel is a group of businesses or intermediaries through which goods or services are passed through until they reach their final goal - consumer or the final buyer. Things that come under a traditional distribution channel are wholesalers, distributors, retailers, and of course, intermediaries present on the Internet. The whole process of distribution channel involves answering the question “how do we get our services to the end consumers?”

Understanding Distribution Channels

With the help of distribution channel management, you make sure that your goods and services, travel through a passage, and end at the targeted consumer. Conversely, it also showcases the pathway that moves from end-user to the original vendor. You can use a distribution channel for a long or short period of time; all of it depends on the amount of intermediaries that are required to deliver the said solution.

When it comes to the hospitality & travel industry, a distribution channel consists of a chain of intermediaries that include online travel agents, retail travel agents, global distribution systems, meta sites and various different aggregators. It is a necessity for a chain or an independant hotel to engage an effective hotel channel management software and make use of travel technology solutions to support their revenue strategy.

These travel technology solutions can either be cloud-based or software-based, and the management operations are carried out in real-time. Now with the help of a distribution channel manager, the parties that are involved in the distribution of the hotel room or services can easily get access to crucial information, like availability of the room and rates.

What Are Some of the Advantages of a Distribution Channel Manager?

Below lies some advantages that come along with a travel distribution channel manager.

1. Effective Travel Distribution Channel Management

One of the key advantages that come with it is the ability to fasten the process associated with managing all the channels. For example, you no longer have to log into the system and check on each and every online travel agent or distribution partner to make the necessary changes, because the changes can be made remotely.

2. Less Booking Mistakes

Another helpful advantage for the people who work in the hospitality industry is the improved accuracy that is provided by the distribution channel manager. For instance, it provides you with transparency and up-to-date availability of rooms to get rid of human error like over-booking your hotel.

Mistakes like these can turn out to be very costly, in terms of not just money but time as well, so eradicating this is a priority that can turn out to be very beneficial.

3. Availability of Data and Key Metrics

Keeping aside the functional aspects of distribution channel managers, another added bonus is that they offer key data and metrics all in one place. Since it becomes fairly easier to make crucial strategic decisions which are backed up by evidence or data, it is of huge importance to hotel owners and business leaders who can use it to track significant trends and patterns.

4. Facilitate Direct Hotel Bookings

Most distribution channel manager platforms include a built-in booking engine or the option of getting connected to your booking engine, which allows customers to make direct bookings. This creates great value for revenue purposes, as direct bookings are the easiest and simple distribution channel and doesn’t require the hotel to pay commission fees to a third-party distributor.

These were a few things that you should know about distribution channel management and how it helps the travel industry