Rental Channel Manager: What is it and do I need one?
Channel managers for short-term rentals


What is a channel manager and what does it do?

A property rental channel manager serves as a valuable tool for property owners, managers, and vacation rental businesses to efficiently handle their listings across multiple online booking channels. Acting as a centralised hub, it establishes connections with various online travel agencies (OTAs), vacation rental platforms, and booking websites, streamlining the process of updating and synchronising property information, availability, rates, and bookings.

To put it simply, a property channel manager performs the following essential functions:

  • Listing Management: Through a channel manager, property managers can effortlessly create and manage property listings on various online platforms from a single dashboard. Gone are the days of manually updating each channel individually, as the channel manager ensures all information remains synchronized across multiple platforms.
  • Availability and Rates Synchronization: Keeping track of availability and rates across numerous channels can be an overwhelming task, prone to manual errors. The channel manager takes care of this by automatically synchronizing availability calendars and rates, preventing double-bookings and maintaining price consistency across all channels.
  • Booking Management: When a reservation is made on any platform, the channel manager promptly updates the availability status across all channels, preventing any risk of overbooking. Moreover, it captures reservation details and forwards them to the property owner or manager’s property management system or reservation software.
  • Real-Time Updates: The channel manager provides real-time updates, empowering property managers to promptly respond to changes in availability, rates, and bookings. This ensures that potential guests receive accurate and up-to-date information at all times.
  • Channel Performance Analytics: Most channel managers offer analytics and reporting features, providing valuable insights into the performance of each listing across different channels. Armed with these analytics, property managers can make data-driven decisions to optimize their rental business.
  • Centralised Communication: A channel manager often offers a centralised communication system, enabling property managers to interact with guests from various platforms without the need to switch between multiple accounts. Some property rental channel managers even support automated messages, saving hosts the hassle of manually notifying guests about booking confirmations and sending check-in and check-out reminders. This feature ensures seamless communication with guests and enhances the overall guest experience.
  • Channel Expansion: As a property manager’s business grows, they may wish to list their properties on additional booking channels. A channel manager simplifies this process by facilitating easy integration with new platforms.

Are PMS and Channel manager the same thing?

No, Property Management System (PMS) and Channel Manager are not the same thing, although they are closely related and often used in conjunction in the hospitality industry.

A Property Management System (PMS) is a software solution designed to help property owners and managers handle various aspects of their operations, such as guest reservations, check-ins and check-outs, housekeeping schedules, billing, and guest communication. It’s a comprehensive tool that assists with managing day-to-day tasks within a property.

On the other hand, a Channel Manager is a specialised software that focuses on managing the distribution of a property’s inventory and rates across various online booking channels, like online travel agencies (OTAs), global distribution systems (GDS), and the property’s own website. The channel manager ensures that the availability and pricing information is accurate and consistent across all platforms, helping to prevent overbookings and optimising occupancy rates.

While PMS and Channel Manager serve different primary purposes, they often integrate with each other to enable seamless data flow between reservations, availability updates, and guest information, providing a more efficient overall management solution for hospitality businesses.

What is an API?

API stands for Application Programming Interface. It is a set of rules, protocols, and tools that allows different software applications to communicate and interact with each other. APIs define how different software components should interact, making it possible for developers to access specific features or data from a service or application without needing to understand the underlying code.

In essence, an API serves as a bridge that enables different software systems to work together. It provides a standardized way for developers to request and exchange information between applications, whether those applications are running on the same device or on different servers over a network.

In the short-term rental industry, APIs are utilised to seamlessly connect property management systems with channel managers and online travel agencies, enabling real-time synchronisation of availability, rates, and reservations across multiple platforms.

A Channel Manager is a specific software tool that uses APIs to facilitate the distribution of property information (such as availability, rates, and inventory) to various online booking channels like OTAs (Online Travel Agencies), GDS (Global Distribution Systems), and the property’s own website. The channel manager uses APIs provided by these channels to send and receive data, ensuring that all the platforms have accurate and consistent information about the property’s availability and pricing.

Do I need a channel manager if I only manage one listing?

While a property rental channel manager may not be considered essential for those managing just one listing, it still offers numerous benefits depending on specific needs and preferences.

Even with a single listing, using a channel manager brings several advantages. It saves time by automating updates and synchronizing availability and rates across booking platforms, which helps prevent overbooking and enhances guest communication through automated messages. The centralised management dashboard streamlines operations, provides performance insights, and presents a professional image. Additionally, it reduces vacancy rates by ensuring optimal occupancy levels and lays the groundwork for scalability if there are plans to expand the rental business in the future.

What should I consider when deciding to use a channel manager?

When contemplating the use of a channel manager for your property rental business, several key factors should be taken into account. First, assess the size and scale of your rental operations and consider whether you intend to expand in the future. Evaluate the number of listing platforms you currently use and the time commitment required for manual management. Compare the features, pricing, and user-friendliness of different channel managers, ensuring they integrate well with your existing platforms. Also, look for reliable customer support, robust data security measures, and flexible contract terms. Taking these aspects into consideration will help you make an informed decision and determine if a channel manager is the right solution to streamline your property rental business.

Will it affect the fee structure of my Airbnb listing if I connect a channel manager?

Connecting your Airbnb listing to a channel manager can have an impact on the fee structure, especially for Professional Hosts. Airbnb has introduced the “Host Only Fee” model for such hosts, which now entails a commission of 14-16%. As part of this update, the service fee is eliminated and will no longer be visible to guests. This modification simplifies the process of setting prices across all booking portals and enhances transparency for both guests and hosts. Hosts who switch to the “Host Only Fee” structure are advised to adjust their prices accordingly to include the 15% commission, ensuring that the total cost for guests remains unchanged. This way, both hosts and guests can enjoy a seamless and transparent booking experience.

Ultimately, a property rental channel manager can significantly enhance efficiency, accuracy, and overall guest experience, making it a valuable asset for property owners, managers, and vacation rental businesses looking to thrive in the competitive online booking landscape.