Both Channel Managers and Online Travel Agencies (OTAs) are important tools that hotels use to make sure their rooms are booked and their business thrives. They each have their own ways of helping hotels, but they are different from each other in so many aspects;
Channel Manager:
A Channel Manager empowers hoteliers to distribute room inventory across various online travel agencies (OTAs), booking platforms, and channels. With a unified interface, it simplifies room management across multiple channels, optimizing efficiency.
One of the key roles of a Channel Manager is to oversee rates and availability across channels in real time, maximizing revenue potential by ensuring rooms are available at competitive rates.
Online Travel Agencies (OTAs):
Online Travel Agencies (OTAs) are instrumental websites that empower travelers to reserve hotels, flights, and other travel services online. Notable examples include Booking.com, Expedia, and Hotels.com. OTAs stand as essential distribution channels for hotels, facilitating wider exposure and heightened bookings.
Typically, hotels incur a commission for each booking through an OTA, which may range from 10% to 30% of the booking value. While OTAs broaden the reach of hotels, they also introduce challenges. One significant challenge is the commission structure, which can impact a hotel's profit margins.