How to Choose Your Channel Manager Wisely?
In 2026, the hotel industry is embracing new technologies, and many hotel owners are rethinking how they manage their operations. Travelers are using more online platforms to book their stays, so it’s crucial for hotels to manage these bookings effectively across multiple channels. A Channel Manager helps by distributing room availability, adjusting prices, and keeping everything updated across all booking platforms.
But with so many options out there, how do you choose the right Channel Manager for your hotel? Let’s look at the main things to consider when picking a Channel Manager in 2026.
Budget Considerations
A Channel Manager is usually cloud-based, so you don’t need to spend a lot on hardware or servers. The price can range from $30 to $350 a month, depending on the features you need. When picking the right Channel Manager, it’s important to match the price with your hotel’s requirements. However, it’s also essential to assess the return on investment. A well-chosen Channel Manager can save time, reduce overbookings, and optimize revenue, which ultimately justifies the cost.
- Price Range: $30 – $350/month
- What to consider: Think about what features are most important for your hotel and if the system can grow with your business. Consider the long-term benefits of reducing manual errors, increasing efficiency, and boosting bookings, which are key to your Hotel Revenue Strategy.
Pricing Model
Channel Managers come with different pricing plans. Some charge a monthly fee, while others charge based on the number of reservations you get. Here are some things to ask about:
- Subscription fees: Do you pay monthly or yearly?
- Setup fees: Are there any one-time setup charges?
- Extra charges: Are there fees for adding extra channels or new features?
- Flexibility: Can you cancel the subscription if needed?
Understanding how the pricing model works is critical, as this can impact your budget over time. Opt for a model that best suits your hotel’s booking volume and flexibility.
PMS Compatibility
Most hotels use a Property Management System (PMS) to manage daily operations. It’s important to choose a Channel Manager that works well with your current PMS. A good two-way connection means that when a booking is made, your PMS and Channel Manager will update each other in real time, helping to avoid overbookings.
An integrated system saves time by preventing the need to manually input booking data and makes sure all platforms have accurate information. Ensuring compatibility with your PMS can also prevent costly mistakes and improve the guest experience.
- Two-way data transfer: Make sure the Channel Manager works with your PMS.
- Benefits: Real-time updates help keep your bookings, rates, and availability accurate.
Channels for Distribution
A Channel Manager allows you to distribute your hotel’s rooms across multiple platforms like OTAs (Online Travel Agents), Global Distribution Systems (GDS), and metasearch engines. It’s important to choose a system that works with the platforms where your guests are likely to book. When selecting your distribution channels, consider not only the major OTAs but also niche platforms or regional travel agents that could be beneficial for your market.
- Distribution Channels: OTAs, GDS, and metasearch engines.
- What to check: Make sure the Channel Manager connects to the platforms you use most.
Pooled Inventory & Rate Parity
When your inventory (room availability) is shared across all platforms at once, this is called pooled inventory. With pooled inventory, when someone books a room on one platform, the Channel Manager updates the availability across all other platforms to avoid double bookings. Similarly, rate parity ensures that your room rates are the same on all platforms, which is important for keeping OTAs happy.
Maintaining rate parity can help strengthen your relationships with OTAs, who often require uniform pricing across channels. This ensures no platform feels disadvantaged and supports your overall revenue strategy.
- Benefits: Avoid overbookings and keep prices consistent across platforms.
- What to look for: Features that automatically update your inventory and pricing.
Internet Booking Engine
An Internet Booking Engine (IBE) allows guests to book directly on your website, which can help you save on commission fees paid to OTAs. A good Channel Manager should come with an IBE that can be easily added to your website.
Direct bookings are an important strategy for reducing dependence on OTAs, and Channel Managers often help drive more direct bookings by incorporating these engines. A Channel Manager with an integrated IBE helps reduce commission costs and allows you to capture more direct revenue from guests.
- Direct bookings: Increase bookings through your website and reduce reliance on OTAs.
- What to check: Make sure the booking engine is easy to use and works well on all devices.
Revenue Management
Revenue management is about adjusting room prices based on demand, competition, and other factors. A Channel Manager that includes revenue management features will help you adjust prices automatically, without having to do it manually. It’s important to pick a system that can help you manage this efficiently.
One of the key features you should look for in a Channel Manager is the ability to implement Efficient Revenue Management Strategies for Independent Hotels, such as dynamic pricing. This feature can help you automatically adjust room rates based on real-time demand, ensuring you're always maximizing revenue potential while remaining competitive.
- Dynamic pricing: Adjust prices based on market changes.
- What to check: Ensure it has tools for updating rates, tracking performance, and making pricing decisions.
Reports & Analytics
A good Channel Manager should give you useful reports to help you understand how your hotel is performing. For example, you should be able to track how many bookings came from each platform, how much revenue you’re making, and occupancy trends. Insights like these can guide your future pricing and marketing decisions.
With the right Channel Manager, you can track important data across all channels, which helps you identify trends and optimize your operations. Analyzing booking patterns, revenue generated per channel, and guest demographics will provide key insights to improve your overall strategy.
- Benefits: Get insights that help you make better decisions for your hotel.
- What to check: Ensure the system provides easy-to-read reports and analytics.
Payment Methods
Guests need to pay for their bookings online, so your Channel Manager should support a range of payment methods. It’s important to have secure payment systems to protect both your guests and your hotel.
A Channel Manager that integrates with various payment gateways can help increase the likelihood of booking conversions, as customers are more likely to complete their reservation if they see their preferred payment method available. Security is also critical, so ensure that your Channel Manager offers encrypted, secure payment processing.
- Benefits: More payment options increase the chances of confirmed bookings.
- What to check: Make sure the system integrates with trusted payment gateways and secures payment data.
Ease of Use
Your Channel Manager system should be easy for your staff to use. Look for a system with a simple, intuitive interface. It should be easy to train your team and make updates when needed.
If the system is difficult to use, it can lead to mistakes, confusion, and lost revenue. Make sure the system offers an easy learning curve and is designed with the user in mind, especially for non-technical staff.
- User-friendly: The system should be simple and easy to navigate for all team members.
- What to check: Look for available training and support.
Customer Support
It’s important to have strong customer support when using a new system. Check if the Channel Manager provider offers good support, especially if you face any issues. Some providers may charge extra for premium support, so be sure to clarify that.
A responsive support team is invaluable, especially during peak times when any issues with the system can directly impact bookings. Ensure the provider offers 24/7 support or has a clear process for resolving issues quickly.
- Support: Choose a provider with a good reputation for customer service.
- What to check: Understand the level of support you’ll receive and if there are extra costs.
Product Focus: AxisRooms Channel Manager
The system automatically updates your inventory across multiple platforms, helping you maintain rate parity and avoid overbookings. AxisRooms also offers an easy-to-use interface that ensures both your team and guests benefit from seamless booking experiences.
Conclusion:
Choosing the right Channel Manager is essential for managing your hotel’s bookings, rates, and availability. By considering the factors we’ve discussed, and exploring options like AxisRooms, you can ensure that your hotel is equipped with the right tools to stay competitive and maximize revenue in 2026 and beyond. With the right Channel Manager, you’ll streamline your operations and improve your hotel’s performance across all channels.