In today’s ever-evolving hospitality landscape, maximizing your hotel’s revenue isn’t just about setting the right rates or offering impeccable service. A crucial aspect often overlooked is distribution—the lifeblood that drives occupancy and boosts profitability. Are you tapping into the full potential of your distribution channels, or are you only capturing half of your opportunities?
Many hoteliers focus on a select few channels, like OTAs (Online Travel Agencies) and their direct website, but this often leaves a significant portion of the market untapped. In fact, studies show that many hotels may be leaving up to 50% of potential bookings on the table by not diversifying their distribution strategies.
Why Distribution Matters
The way in which travelers book hotels has become increasingly fragmented. With countless booking platforms, meta-search engines, global distribution systems (GDS), and other third-party partners available, reaching your target market requires a multi-channel strategy. By only focusing on a limited number of channels, your hotel might miss out on a broader audience, thus losing the opportunity to fill more rooms and increase revenue.
Effective distribution is about being everywhere your potential guests are looking for accommodations. Whether they’re browsing Booking.com, checking rates on Google Hotel Ads, or booking through a corporate travel agent, your presence on all relevant channels ensures you’re capturing every possible booking opportunity.
What Does the Other 50% Look Like?
While many hotels rely heavily on OTAs like Expedia and Booking.com, there are many other channels that account for the bookings you’re missing. Here’s a breakdown of the other 50% of potential bookings and how to access them:
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Global Distribution Systems (GDS): A vital resource for business travelers and large corporations, GDS channels like Amadeus, Sabre, and Travelport connect your hotel to travel agents and corporate clients worldwide. Without tapping into GDS, you might be missing out on high-value, long-stay bookings.
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Meta Search Engines: Platforms like Google Hotel Ads, Trivago, and TripAdvisor meta-search engines are increasingly popular among travelers. Ensuring your hotel appears on these sites increases your direct bookings and reduces dependency on OTAs.
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Mobile-Only Booking Channels: The rise of mobile bookings cannot be ignored. Apps like HotelTonight and Hopper specialize in last-minute deals and offer an entirely different segment of travelers. Being visible here can help fill your rooms at the last minute.
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Corporate Contracts: Many hotels overlook the benefits of establishing corporate travel agreements. By contracting with businesses for employee stays, your hotel can guarantee a steady stream of bookings, even during off-peak seasons.
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Niche OTAs: While the big OTAs dominate the market, smaller niche OTAs can cater to specific travel audiences, such as eco-conscious travelers, luxury travelers, or travelers looking for unique accommodations. These platforms might not have the massive traffic of Expedia, but they can generate valuable bookings from a dedicated clientele.
How to Capture the Full Spectrum of Distribution
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Optimize Channel Mix: Diversify your distribution portfolio by working with a variety of OTAs, meta-search platforms, GDS systems, and mobile-only booking platforms. This strategy ensures you have a presence across the entire spectrum of booking channels.
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Leverage Direct Bookings: Don’t forget the power of your own website and booking engine. Use strategic marketing campaigns and loyalty programs to drive guests to book directly, reducing commission fees from third-party platforms.
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Improve Visibility: Use tools like Booking.com’s Visibility Booster, Expedia’s Accelerator program, and other OTA advertising tools to ensure your hotel ranks high when potential guests search for accommodations.
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Integrate Technology: Invest in revenue management systems that can help you distribute inventory and manage rates across multiple channels seamlessly. With the right technology, you can ensure you’re selling the right room, at the right rate, on the right channel.
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Monitor and Adjust: Distribution is not a set-it-and-forget-it process. Regularly monitor the performance of each channel and adjust your strategy to ensure you’re getting the best return on investment (ROI). Shift focus to the highest-performing platforms and cut back on those that don’t deliver.
The Benefits of Expanding Your Distribution
Expanding your distribution strategy has clear and measurable benefits for your hotel:
- Increased Occupancy: By reaching new market segments through different channels, you can boost occupancy during both high and low seasons.
- Diverse Guest Base: Having access to different booking platforms allows you to attract a more varied audience, from corporate clients to last-minute leisure travelers.
- Higher Revenue: A well-balanced distribution strategy, combined with dynamic pricing, ensures you’re capturing as much revenue as possible from every channel.
By leveraging a comprehensive distribution strategy, you’ll not only increase your hotel’s visibility but also maximize your revenue potential. Don’t let half your bookings slip through the cracks—ensure you’re capturing the full spectrum of demand with a dynamic and diversified approach to distribution.
Are You Capturing Your Fair Share?
In today’s digital age, being visible across multiple channels is essential to maximizing revenue and boosting occupancy rates. The more channels you are on, the more opportunities you have to capture bookings from different traveler segments. By expanding beyond traditional OTAs and implementing a well-rounded distribution strategy, you can ensure that your hotel isn’t missing out on that other 50% of potential bookings.
At RevOptimum, we specialize in helping hotels optimize their distribution strategies, so they can reach their full revenue potential. Are you ready to capture every booking opportunity? Let us help you get there.
Get the personalized revenue management service your hotel needs today.
RevOptimum enables revenue management transformation for the hotel industry and supports hoteliers through our expertise and innovative revenue increase structures and proprietary tools. Every day, we strive to deliver the highest revenue performance, client excellence, service quality, and integrity that bring the power of success to the hospitality industry.
We are ready to work with your hotel to build a revenue management plan that brings in more RevPAR closely. Contact us to learn how you can reach all of your hotel revenue goals quickly.
