10 Best Hotel Channel Managers: Comparison of Providers

Staying ahead in the highly competitive hospitality industry requires more than just exceptional service; it demands operational efficiency and strategic distribution. Channel managers are essential tools that help hotels streamline their online presence, manage inventory across various platforms, and enhance revenue management.

This guide will explore the top 10 channel manager providers, offering insights into their unique features and benefits to help you choose the best fit for your property.

What is a channel manager in hospitality?

A channel manager is a crucial tool in the hotel industry, designed to streamline the distribution of hotel inventory across various online platforms. By connecting a hotel's property management system (PMS) with multiple online travel agencies (OTAs), global distribution systems (GDS), and direct booking channels, channel management software ensures that room availability, pricing, and booking information are updated in real-time. This synchronization prevents double bookings, optimizes room rates, and enhances operational efficiency, allowing hotels to maximize their revenue.

Channel managers facilitate the effective implementation of a distribution strategy by managing reservations across multiple channels. This includes various sales channels such as OTAs, direct bookings, and GDS, ensuring consistent and accurate room type availability and pricing. The ability to manage these elements in real-time helps prevent overbooking and ensures a seamless guest experience.

The global hotel channel managers market has seen significant growth, with its size valued at USD 455 million in 2021 Projections indicate that this market will reach USD 1,061.19 million by 2032, reflecting a compound annual growth rate (CAGR) of 7.9% during the forecast period. This growth underscores the increasing reliance on sophisticated channel management software to manage distribution channels effectively, highlighting the essential role of channel managers in the evolving hospitality landscape.

Is a channel manager the same as a property management system (PMS)?

While both channel managers and property management systems (PMS) are integral to hotel operations, they serve distinct functions. A PMS focuses on managing day-to-day hotel operations such as reservations, guest check-ins and check-outs, and housekeeping. In contrast, a channel manager specifically handles the distribution of inventory and rates across various online channels, including OTAs and booking platforms. Essentially, a PMS manages internal hotel operations, while a channel manager focuses on external distribution.

Discover the best hotel Property Management Systems (PMS) with our comprehensive guide: Choosing the Best Hotel Property Management Systems: Top PMS Software Compared

What is the difference between a channel manager and OTAs?

Online Travel Agencies (OTAs) like Expedia, Agoda, Airbnb, Trivago, TripAdvisor, and VRBO are booking platforms where travelers find and book accommodations. These booking sites act as intermediaries between hotels and guests, facilitating reservations and often offering reviews and additional travel services.

A channel manager, on the other hand, is not a booking site but a tool that connects hotels with OTAs and other booking channels. It facilitates the distribution of room availability and rates to OTAs, ensuring that updates are synchronized in real-time. This synchronization prevents overbooking and ensures accurate inventory management across platforms like Expedia, Agoda, Trivago, TripAdvisor, and VRBO.

While OTAs are the booking interfaces that travelers interact with, channel managers streamline how inventory is presented and updated on these booking sites. This seamless integration allows hotels to efficiently manage their presence on multiple OTAs, enhancing visibility and maximizing bookings. Travel agents also benefit from channel managers as they can access real-time data on availability and pricing, making it easier to book accommodations for their clients.

Explore the top 10 Online Travel Agencies (OTAs) for hassle-free booking, comparing their benefits and drawbacks for travelers and hotels alike: Top 10 Online Travel Agencies for Hassle-Free OTA Booking

What is the difference between a GDS and a channel manager?

Global Distribution Systems (GDS) like Sabre, Amadeus, and Travelport are large-scale networks that connect travel service providers (hotels, airlines, car rentals) with travel agencies worldwide. These systems are pivotal for hoteliers seeking global reach and access to corporate travel agents through extensive sales channels.

In contrast, a channel manager is a specialized tool that facilitates the direct connection and management of inventory and rates across multiple channels, including online travel agencies (OTAs), the hotel website, and other booking platforms. Channel managers integrate with various extranets to ensure that room types, availability, and pricing are consistently updated in real-time, preventing double bookings and optimizing occupancy rates.

While GDSs offer broad market reach and are ideal for connecting with travel agents, channel managers provide more granular control over distribution and rate management. Channel managers allow hoteliers to manage connected booking processes across multiple channels simultaneously, ensuring that information across all platforms is synchronized. This synchronization helps maintain consistency in room types and pricing, making it easier for hoteliers to manage reservations and prevent overbookings.

Explore the top hospitality technology trends of 2024 that are transforming the industry in this article.

How do I choose a channel manager? Features to consider

When selecting a channel manager, consider the following features to ensure it meets your needs:

a. Ease of use

A user-friendly interface with intuitive navigation is essential. The channel manager should be easy to set up and operate, even for users with minimal technical expertise. This simplicity ensures that your staff can quickly adapt to the system without extensive training, enhancing overall efficiency. Notably, 86% of hoteliers report that ease of use in their property management system, revenue management system, and channel manager is essential for day-to-day operations. This statistic underscores the importance of user-friendly channel management software in the hospitality industry.

b. PMS integration

Seamless connectivity with your existing Property Management System (PMS) is essential for unified operations. The channel manager should integrate smoothly with your PMS to synchronize bookings, rates, and availability. This integration ensures that your operations are streamlined and that information is consistently updated across all platforms, including booking sites and the hotel website. By having a unified system, you can avoid discrepancies and manual errors, providing a seamless experience for both your staff and guests.

c. Automated updates

Real-time synchronization of rates and availability across all distribution channels is vital to prevent discrepancies and double bookings. Ensure the channel manager provides automated updates to keep information current. This feature minimizes the risk of human error and ensures that your inventory is accurately represented across all channels, including online booking platforms and vacation rentals. Recent surveys show that over 80% of hospitality operators are integrating automated systems to streamline operations, highlighting the importance of this feature in maintaining operational efficiency and accuracy.

d. Reporting and analytics

Advanced reporting tools are important for monitoring performance and making data-driven decisions. Look for features that provide insights into occupancy, revenue, and distribution strategy performance. Comprehensive analytics help you understand trends, identify opportunities for improvement, and make strategic decisions to boost profitability. In our article "AI Statistics in Hospitality: A Glimpse into the Future," we found that 58% of hoteliers embrace technological innovations such as AI and data analytics to enhance their reporting capabilities. This trend indicates a growing recognition of the value of robust analytics in optimizing hotel operations.

e. Centralized and cloud-based

Opting for a centralized, cloud-based channel manager can significantly enhance your business agility and flexibility. With cloud-based systems, updates and data are accessible from anywhere, allowing for real-time management and decision-making even when off-site. This centralization ensures that all your data is stored securely in one place, reducing the risk of data loss and facilitating easier integration with other systems. According to industry reports, 54% of hoteliersrecognize that cloud computing offers a more flexible and agile business operation, highlighting its growing importance in the hospitality sector.

By focusing on these key features, independent hotels, hostels, and other hospitality businesses can choose the channel management software that best fits their needs. This will ensure efficient management of reservations across multiple channels, from online travel agents to the hotel website, ultimately leading to a more effective distribution strategy and preventing issues like double bookings.

{{blog-cta-video="/features/product-updates"}}

What are the 10 best channel managers for hotels?

Here are the top 10 channel manager providers, each with its unique strengths:

1. eviivo

Hosting 27,000+ hotels worldwide eviivo offers an intuitive platform that simplifies the management of reservations and inventory. Its user-friendly design is ideal for hoteliers of all technical skill levels, making it accessible and efficient.

Pros:

• User-friendly interface
• Easy setup and operation
• Ideal for small to medium-sized properties

Cons:

• Limited advanced features for larger hotel chains
• Basic reporting and analytics tools

2. RateGain

RateGain excels in dynamic pricing, helping hotels adjust rates based on market demand and competition to maximize revenue. It is widely used in over 100 countries by 3,200+ customers.

Pros:

• Advanced dynamic pricing tools
• Effective revenue management
• Wide market reach

Cons:

• Steeper learning curve
• Can be expensive for smaller properties

3. SiteMinder

SiteMinder provides a robust platform with automation features that reduce manual work and minimize errors in rate and availability updates. SiteMinder processes over 100 million hotel bookings annually and serves 41,600 hotels in 150 countries.

Pros:

• Strong automation features
• Reduces manual errors
• Large customer base

Cons:

• Higher cost for premium features
• May require technical support for setup

4. TravelLine

TravelLine supports integration with a wide range of booking sites, making it easy for hotels to expand their reach and manage inventory efficiently. It has a customer base of 12,000 in 50 countries.

Pros:

• Extensive channel integrations
• User-friendly interface
• Global reach

Cons:

• Limited customization options
• Customer support can be slow

5. Yanolja

Yanolja offers advanced features for managing multiple properties, making it an excellent choice for hotel chains and groups. It boasts 19 million combined users across its platforms.

Pros:

• Excellent for multi-property management
• Comprehensive property management features
• Strong user base

Cons:

• Can be complex for single-property operations
• Higher cost for smaller properties

6. Cloudbeds

Cloudbeds prvides extensive connectivity with over 300 distribution channels, including niche marketplaces and global OTAs, enhancing property visibility. Cloudbeds serves 20,000 customers, primarily independent hotels and boutiques.

Pros:

• ovideExtensive channel connectivity
• Enhances property visibility
• Suitable for various property types

Cons:

• Higher price point
• Requires ongoing technical support

7. Profitroom

Profitroom focuses on broadening property reach through a wide network of OTAs and distribution channels, optimizing visibility and bookings. Of all the hotel businesses that are using Profitroom, a majority (63%) are small (<50 employees), 3% are large (>1000 employees), and 34% are medium-sized.

Pros:

• Broad connectivity with OTAs
• Optimizes visibility and bookings
• Suitable for various property sizes

Cons:

• Complex setup process
• Premium features can be costly

8. Blastness

Blastness offers streamlined management of various distribution channels, ensuring efficient operations and accurate inventory control. It has a client portfolio of over 1,000 properties.

Pros:

• Efficient multi-channel management
• Accurate inventory control
• Suitable for medium to large properties

Cons:

• Limited features for small properties
• Can be expensive

9. SmartHOTEL

SmartHOTEL excels in providing real-time updates for inventory and rates, helping hotels avoid discrepancies and overbookings. It is highly recommended by 89% of its customers.

Pros:

• Real-time updates
• Prevents overbookings
• Highly recommended by users

Cons:

• Basic reporting features
• Limited advanced tools

10. Hotelogix

Hotelogix ensures that information is accurate and up-to-date across all channels, facilitating effective management and minimizing errors. Of all the hotel businesses that are using Hotelogix, a majority (56%) are small (<50 employees), 15% are large (>1000 employees), and 22% are medium-sized.

Pros:

• Accurate and current information
• Effective management tools
• Suitable for various property sizes

Cons:

• Limited advanced features
• Can be costly for small properties

Other channel managers include HotelRunner, Ratetiger, and Ezee. These channel management software solutions provide diverse functionalities to cater to different types of properties, from independent hotels and hostels to vacation rentals. Each channel manager offers unique features that can significantly enhance your distribution strategy, improve reservation handling, and streamline your connection with online travel agents like Expedia and Airbnb.

What is the channel management software used by 5-star hotels?

5-star hotels typically require channel management software with robust features and comprehensive integration capabilities to handle their extensive reservations, varied room inventory, and high expectations of guest service.

SiteMinder is a popular choice among luxury properties due to its advanced distribution strategy and strong automation features. SiteMinder processes over 100 million online bookings annually, providing real-time synchronization of rates and availability across multiple booking sites like Expedia. This minimizes manual errors and ensures seamless operations. The software's ability to handle complex inventory and support extensive distribution channels makes it ideal for the sophisticated needs of 5-star hotels.

What is the channel management software used by 3-star hotels?

3-star hotels often seek a balance between affordability and functionality in their channel management software.

Cloudbeds is a popular choice for these properties due to its user-friendly interface and extensive connectivity with over 300 distribution channels, including booking sites and vacation rentals platforms like Expedia. Cloudbeds offers features such as real-time reservations updates and automated rate adjustments, which help 3-star hotels manage their inventory efficiently and optimize their distribution strategy. Its affordability and ease of use make it a practical solution for mid-range hotels looking to streamline their online booking processes without compromising on essential functionalities.

What is the channel management software used by independent hotels?

Independent hotels often prioritize flexibility and cost-effectiveness in their channel management software.

Cloudbeds is highly favored among independent properties due to its comprehensive suite of tools designed to enhance visibility across multiple booking sites and vacation rentals platforms. Cloudbeds support a wide range of distribution channels, ensuring that independent hotels can efficiently manage their reservations and inventory. Its centralized, cloud-based system allows for real-time updates and seamless integration with various online booking platforms, making it an excellent choice for independent hoteliers looking to improve their distribution strategy without the need for extensive technical expertise. Additionally, Cloudbeds caters to diverse property types, including hostels, offering tailored solutions that meet the unique needs of independent hotels.

Why do you need a channel manager?

A channel manager is essential for modern hotel operations due to several key benefits:

a. Increased efficiency

A channel manager automates the process of updating rates and availability across multiple distribution channels. This automation reduces the manual effort required to manage inventory, allowing hotel staff to focus on other critical tasks. According to industry data, 86% of hoteliers consider channel managers, along with revenue management systems (RMS) and property management systems (PMS), integral to their operations due to the increased efficiency they provide.

Hotel general managers use numerous tech tools and operational strategies to improve the efficiency of a hotel business. To learn more about them, read our article Understanding the Role of a Hotel General Manager.

b. Maximized bookings

By ensuring real-time availability and pricing across all platforms, a channel manager helps attract more bookings and improve occupancy rates. For example, hotels that integrate a channel manager often see a significant boost in online bookings. Some reports indicate that hotels can experience up to a 20% increase in online reservations after implementing a channel manager, thanks to more dynamic and responsive rate management.

Learn essential tips and strategies to boost your bookings in our comprehensive guide.

c. Enhanced revenue management

Channel managers provide robust tools for dynamic rate adjustments based on real-time market conditions. This capability allows hotels to optimize their pricing strategies, ensuring they maximize revenue by selling rooms at the best possible rates. The ability to adjust rates quickly in response to demand fluctuations is a critical aspect of modern revenue management.

Want to learn more about revenue management and RMS? Read our article 7 Best Hotel Revenue Management Systems (RMS): An In-Depth Comparison

d. Reduced overbooking risks

One of the key advantages of using a channel manager is its ability to synchronize inventory across all booking channels in real-time. This synchronization helps prevent overbookings and cancellations, which can lead to negative guest experiences and revenue losses. By maintaining accurate inventory levels, hotels can ensure a smoother and more reliable booking process for their guests.

e. Broader market reach

A channel manager connects hotels with a diverse range of online travel agencies (OTAs) and global distribution systems(GDSs), significantly expanding their market presence. This broader reach helps attract a wider audience, including both business and leisure travelers. By leveraging multiple distribution channels, hotels can increase their visibility and tap into new market segments, driving higher occupancy rates and revenue.

{{blog-cta-video="/features/product-updates"}}

Increase your bookings with best-in-class online reputation

Integrating channel managers into your operations enables you to extend your market reach. However, expanding your reach doesn't mean you should lose touch with your customer base. It's essential to maintain a strong connection with your clients to preserve positive relationships and an excellent online reputation. One effective way to achieve this is by actively responding to online reviews. Engaging with customer feedback demonstrates your commitment to guest satisfaction, builds trust, and enhances your property's appeal to potential guests.

Responding to online reviews can be a daunting task, but it doesn't have to be with our AI Review Assistant of MARA. This intuitive tool is designed to ease your Online Reputation Management process, making it more efficient, personalized, and time-saving. It offers the best and most personalized AI for responding to and analyzing your guest reviews.

Review Inbox

One of the key features of this tool is the Review Inbox. Your review inbox makes responding to reviews as simple as hitting "Generate reply" and clicking "Send". The Review Inbox connects to multiple review sources, including Google, Booking.com, and Tripadvisor, giving you a panoramic view of all your reviews. And you can even configure review response automation: Why not allow MARA to automatically respond to simple reviews, like 5-star Google reviews with no text, ensuring you never miss a review? Daily notifications about new reviews keep you updated and in control.

Review Analytics

To help you understand and analyze the multitude of reviews, the Review Assistant also incorporates Review Analytics. This provides actionable, easy-to-understand insights that are tailored exclusively to your business. With MARA, you can quickly get the gist of all your reviews without needing to read each one. The analysis is so detailed that you can find out about specific issues like "water in the pool is too cold" or "lack of vegan breakfast option”. These insights help optimize guest experience without requiring you to be a data expert.

Group Analytics

Additionally, our group analytics overview can provide a quick evaluation of the performance of each location. Other than key metrics such as response rates, ratings, and the number of reviews, MARA also offers category scores based on advanced AI analytics. In the screenshot below, you can find an analysis for hotels with category scores for areas like Food & Beverage, Front Office, and Housekeeping. This analysis aids in swiftly identifying potential weaknesses, with a preview of detailed topics appearing when you hover over a category.

The most personal response AI

MARA's AI isn't just about efficiency; it's about personalization too. The Brand Voice feature allows the AI to adapt to your tone, making sure your responses sound authentically you. Plus, with Smart Snippets, you can "teach" the AI how to respond to recurring praises or complaints. Your AI then incorporates this information into its responses, but always with different words, providing more personalized, relevant replies.

This review response assistant has quickly become a game-changer for over 2000 customers. Its promising capacity to elevate your overall rating, amplify response rates, glean insights from customer feedback and economize both time and money, is the reason behind its growing popularity.

Why hesitate to give our AI Review Assistant, MARA, a try? It's completely free for testing, doesn't require a credit card, and can be fully operational in less than five minutes.

Final Thought

Choosing the right channel manager is essential for enhancing your hotel's distribution strategy and maximizing revenue. By evaluating the key features and comparing the top providers, you can find the best fit for your property. A well-selected channel manager will streamline your operations, increase your market reach, and improve your overall guest experience, positioning your hotel for long-term success in the competitive hospitality industry.

This post is part of our hero content series on "The Future of Hotel Technology: Must-Have Tools and Solutions for Modern Hotels”