5 essential tips for healthy distribution for independent hotels

It's not just a set and forget activity where you pick a few channels to list your property on and the job is done. It's about developing an effective and malleable strategy that maximizes visibility, enhances profitability, and increases bookings.

For independent hoteliers, where resources might be more limited compared to big chains, striking the right balance in distribution can make all the difference between thriving and merely surviving.

With the rise of Online Travel Agencies (OTAs), changing booking behaviors, and the complexities of working with wholesalers, operating within this space can feel overwhelming. But, here's the good news, success is achievable with the right approach.

A healthy distribution strategy isn’t about choosing between OTAs and direct bookings or between promotions and rate parity. Instead, it’s about harmonizing these elements to create a seamless, profitable distribution mix for your hotel.

Niki Van den Broeck, Lighthouse Product Manager for Distribution, compiled five essential tips to guide you on this journey.

From leveraging OTAs and diversifying partnerships to mastering promotions and wholesale relationships, these insights are designed to empower you with actionable strategies that make a tangible difference to your bottom line.

1. OTAs vs. own website: Maximizing net profit

One of the biggest decisions you will face is whether to prioritize investment in your own website or to lean on the power of OTAs. Both options come with their unique benefits and challenges. The key is to understand how each contributes to your overall profitability and finding the right balance.

2. Diversify for success

When it comes to distribution, variety is essential. Partnering with multiple channels can provide access to new audiences and protect your business from potential disruptions.

But how many partnerships are too many? And how can you ensure you’re not stretching your resources too thin? Watch below to see how diversification is done right.

3. Be strategic with promotions

Promotions can be a powerful tool to boost visibility and attract bookings, but they’re also a double-edged sword.

When used without a clear strategy, they can erode your margins and train guests to expect discounts. Knowing when, where, and how to deploy promotions is crucial to maintaining a healthy balance between occupancy and profitability.

4. Navigate wholesale partnerships carefully

Wholesalers can be invaluable allies in reaching international guests and filling rooms during low-demand periods.

However, managing these partnerships requires a thoughtful approach. From negotiating rates to addressing potential pitfalls like rate leakage, having a clear plan in place can help you maximize the benefits of these relationships while minimizing the risks.

5. Master online distribution

Online distribution has opened up incredible opportunities for independent hotels, but it’s not without its challenges.

From managing rate parity to coordinating with OTAs and wholesalers, staying on top of your distribution strategy is an ongoing task. Mastering this area is essential for maintaining control and unlocking your property’s full potential.

Fine-tune your distribution strategy for success

Every distribution strategy will benefit from the right strategic adjustments. Small changes, like aligning promotions with business goals or fine-tuning partnerships to ensure rate parity can drive significant results.

There’s no one-size-fits-all approach; a tailored strategy that fits your hotel’s goals, guest profile, and resources is key. Success lies in staying proactive, regularly assessing performance and continuously refining your distribution efforts.

One tool that can help simplify and optimize this process is a channel manager. By centralizing the management of rates, availability, and inventory across all your OTAs and distribution channels, a channel manager reduces manual work and minimizes the risk of inconsistencies, such as double bookings or rate discrepancies. It also allows you to maintain rate parity more effectively, ensuring a seamless experience for your guests and partners.

A channel manager is an essential asset in optimizing your distribution. It enables a smarter, more efficient distribution strategy, while removing tedious tasks such as updating pricing and inventory per channel so you can spend time on delivering exceptional guest experiences.

Contact us today to learn more about our tools for independent hotels.