What Is Channel Management?
Channel management is the sheer act of choosing which channels and at which rates you want to make your properties available.
Even if you only rent out your property on one online travel agency (OTA), you are, in fact, managing a channel. This is because you are making conscious decisions about which channel to use and which price and marketing strategy to use there.
Software can help streamline every aspect of this.
When to Use Channel Management for Vacation Rentals
Remember what the key driver for a booking website is? Conversion.
Every site that you list your property on wants it to convert. How else would they make money? However, it can only convert well if it has a lot of availability and, ideally, low prices.
But listing on many channels has its own risks. For example, getting double-booked is highly undesirable.
When consumers search for rentals, they are primarily influenced by the factors that will increase their chances of booking: availability, rates, pictures, descriptions, amenities, property type, and reviews. Travelers are getting pickier and may only search for specific amenities such as beachfront or pet-friendly.
This is where technology — namely, a channel manager or property management software (PMS) — can help. These tools help ensure you market your property to the right people.
What to Look for When Choosing a Channel Manager
When looking for channel manager software, it’s worth noting that a PMS often comes with a built-in channel manager. Software that only does channel management will push your rates and availability to certain channels, while a PMS allows you to generate reports and owner statements, schedule cleanings, and communicate with your guests.
Regardless of whether you’re looking for a PMS or channel manager, below are several things to take into consideration as you’re making your selection.
Strong Channel Connections
Ensure that the channel manager in question is a preferred or elite partner of the OTAs you use or are planning to use. This will give you access to the best technology, maximize the availability of features, and get you more bookings.
Check out Airbnb’s Preferred Partners, Vrbo’s Elite Partners, and Booking.com’s Premier Partners for lists of popular channel management choices.
Reporting and Finance Management
Any decent PMS will let you create financial reports for yourself, your business partners, and your accounts. But the data is seldom accurate when it comes to resolutions, alterations, and manual changes.
Ensure you have a system that contains the correct financial data and allows you to present it in various formats.
Also, if you start managing properties on behalf of others, be sure the owner statements can be easily generated and are accurate while allowing for manual items to be added or adjusted.
Management of Cleaning and Maintenance
A strong task management system is the core of every property manager, big or small.
Your PMS should be able to account for sick days and additional cleanings. Bonus points if it’s usable on a mobile app so that you can upload photos and cleaning checklists.
Guest Communication Automation
A unified inbox that supports OTA message platforms, emails, text messages, and WhatsApp messages is critical. Having a good guest portal for verifying identities and signing rental agreements can bring an extra revenue stream through upselling.
Custom Website Builder
Any good PMS will have an advanced and customizable website builder that truly makes your site stand out from the rest. Be sure it can be customized and embedded on your existing website, uses dynamic pricing, and supports promotional coupons. You’ll need them.
Payment Processing
Once you diversify your revenue stream, processing your own payments gives you more control. That said, in order to continue scaling your business, you need a system that automates your payment processing.
No Hidden Fees
Be sure to read and understand all the terms before you sign a contract. Many systems can have hidden fees in the fine print, so be sure you know what you’re signing.
Features for Scaling Your Business
Choose a PMS with at least 100 partners in their marketplace. This will help ensure you’re able to incorporate new technology or business models, such as using smart home technology or crypto payments, when the consumer or your business needs it.
Additionally, an open API (application programming interface) lets you develop your own tools should you need to. Flexible user management allows you to manage the access levels of your team members as you grow.
Use a Channel Manager to Centralize Your Vacation Rental Listings
It’s worth exploring which channels to market your properties on, but a lot of attention and focus is needed to wisely invest the time and energy in the right places to get the optimal return. A channel manager can help you with a lot of the work.
