Distribution Channels: Increased visibility and bookings

How do you ensure your property is seen in the ever-crowded world of hotel distribution? There isn’t one right answer to this question. Instead, lodging businesses must employ a multi-channel distribution strategy, focused primarily on online distribution channels, to attract travelers in an increasingly digital world. 

From optimizing your website to strategically partnering with OTAs and maximizing metasearch engine visibility, read on to learn how to leverage different channels effectively to boost online exposure and booking potential.

What are online distribution channels?

Online distribution channels are the different travel sites and platforms a property uses to reach its target audience. Lodging businesses usually employ a mix of online channels to increase visibility and enhance booking potential. 

Popular channels include online travel agencies (OTAs), metasearch engines, bed banks, GDS, and a hotel’s website. These channels serve as virtual marketplaces where hotels can showcase their inventory to potential guests worldwide. All channels bring different value and should be used strategically depending on a hotel’s goals.

Importance of a well-rounded online distribution strategy

A well-rounded online distribution strategy that consists of various channels is beneficial to lodging operators in many ways. Here’s a quick breakdown of how the industry has changed over the past few years, making online distribution more important than ever.

Booking preferences have changed. 

83% of consumers prefer to book their travel arrangements online. This shift towards digital platforms means that for a property to capture potential guests, it must have a strong online presence. Being easily discoverable and bookable via different online channels is fundamental to attracting modern travelers.

Traveler’s research more than ever. 

When planning trips, travelers don’t just visit one or two websites; they explore hundreds. Expedia Group found that during the early stages of planning, travelers average around 2.5 page views per day, but in the days before a booking, page views increase exponentially, with 25 page views on the day of purchase. This extensive research process highlights the need for lodging businesses to be active on as many relevant channels as possible.

3 online distribution channels to focus your efforts 

As a starting point, lodging operators should focus on three key online distribution channels: their website, online travel agencies, and metasearch engines. Here, we’ll explore what each offers and best practices to maximize results. 

Hotel website 

A hotel’s website is the most crucial channel. It serves as a connection point with potential guests and allows for greater control over messaging. Without a well-designed, modern, search-optimized website, hotels will struggle to build credibility with potential guests, losing out on both direct and indirect bookings. 

Best practices include: 

• Use an integrated booking engine. Embed your hotel booking engine directly into your website. A seamless integration ensures potential guests can easily book without leaving your site, simplifying the booking process and enhancing the user experience.
• Offer a rate checker. Implement a rate checker to allow guests to compare prices without navigating away from your site. Keeping users on your website throughout their decision-making process increases the likelihood of direct bookings.
• Clear calls to action. Utilize clear and compelling calls to action (CTAs) and straightforward headers (ie., Book Now). These elements guide visitors towards booking, contacting the hotel, or taking other important actions.
• Use high-quality imagery and visuals. Professional visuals are crucial for showcasing your property’s best features. Professional photos and videos can significantly enhance your website’s appeal, providing a virtual tour that entices potential guests.
• Mobile-friendly design. Ensure your website is optimized for mobile devices. A mobile-responsive design is essential, as a significant portion of travelers use smartphones for planning and booking their travel.
• Encourage upsells. Strategically promote additional services and upgrades on your website and booking engine, such as room upgrades, dining experiences, or spa treatments. 
• Implement chatbots. Use chatbots to provide instant responses to traveler inquiries. This improves customer service and engages potential guests by providing immediate assistance and information.

Online travel agencies 

Online travel agencies (OTAs) are necessary for lodging businesses to increase visibility, drive awareness, and boost bookings. OTAs offer a platform to reach a diverse audience, encompassing global, regional, and niche markets. Selecting the right mix of OTAs can also result in the Billboard Effect, where travelers find hotels on OTAs and visit their websites to book direct. 

Best practices include: 

• Use an integrated channel manager. Utilize an integrated channel manager to synchronize your rates and availability across multiple OTAs. This tool prevents overbookings and ensures consistent information is presented across all platforms.
• Diversify OTA selection. Aim for a mix of six OTAs, including two global, two regional, one targeting a specific region, and one niche OTA. This diversified approach helps cover a wide range of potential guests and booking preferences.
• Analyze fees and commissions. Understand the fees and commissions charged by different OTAs. Analyzing these costs is essential to developing a profitable strategy, ensuring your partnership with OTAs remains financially viable.
• Maintain consistency across channels. Ensure your property descriptions, imagery, and policies are consistent across all OTAs. Potential guests compare listings across multiple sites, and consistency builds trust and recognition.
• Measure and refine. Regularly assess the performance of each OTA in your mix. Determine which channels generate the most reservations and evaluate if the commission costs are justifiable within your revenue management strategy.
• Have a reputation management strategy. Implement a reputation management strategy to monitor, collect, and respond to reviews across all OTA platforms. The more positive reviews you have, the more likely someone is to book. 
• Explore alternatives. In addition to traditional OTAs, consider listing your property on bed banks and GDSs. These channels can offer additional avenues for exposure and bookings.

Metasearch

Metasearch engines help increase bookings through a mix of organic presence and advertising efforts. Often described as a “search engine for search engines,” metasearch platforms compile and compare hotel information and rates from various online distribution channels (including your website), providing a one-stop-shop for travelers to evaluate their accommodation options.

Best practices include: 

• Ensure accurate listings. Verify your hotel’s information on metasearch channels for accuracy and completeness. If you’re listed on OTAs, you’re likely already on metasearch engines, but listings may need to be claimed, created, or updated to reflect accurate information.
• Invest in metasearch advertising. Utilize metasearch engines as an advertising channel to boost exposure, build brand awareness, and attract direct bookings. 
• Select suitable channels. Choose channels that align with your property’s target market, popularity, cost-effectiveness, and potential for driving bookings. Not all metasearch engines will be a perfect fit for every property, so selecting those that match your strategic goals is crucial.
• Maintain rate parity. Uphold consistent rates across all channels, including your direct booking rates and those offered through OTAs. If metasearch users find lower rates on OTAs, they are less likely to book directly with your hotel.
• Offer multiple rate types. Providing rate options, such as free cancellation or breakfast rates, can make your offering more attractive on metasearch platforms, catering to a broader range of traveler preferences.
• Monitor performance. Regularly track the performance of your metasearch advertising campaigns, including ad spend, bids, clicks, and conversion rates. This data will help you refine your strategy and ensure you are investing wisely to maximize returns.

Mastering online distribution

In the competitive world of hotel distribution, mastering online channels is no longer optional – it’s essential. Each channel plays a vital role in amplifying visibility and bookings and, when used together, will provide the best results for lodging businesses. Success in today’s hospitality industry hinges on being visible where your guests search and book. Start with a few trusted channels and slowly add more to build your ideal distribution mix.