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STAAH Blog

  • Home
  • MANAGEMENT
    • Why Every Hotel Needs a Channel Manager…

      Program Konsorsium Hotel: Bagaimana, Mengapa & Berapa…

      โปรแกรม Hotel Consortia: อย่างไร ทําไม และค่าใช้จ่ายเท่าไหร่?

      ตัวจัดการช่องทาง Channel Manager คืออะไร และทำไมผู้ให้บริการที่พักจึงจำเป็นต้องมี?

      The Top Traits of Exceptional Hospitality Professionals

  • Marketing
    • Smart Hotel Distribution: What Every Hotelier Needs…

      The Ultimate Guide to Turning Negative Reviews…

      6 Social Media Trends Hoteliers Must Leverage…

      ไอเดียโพสต์โซเชียลมีเดียที่กําลังมาแรงสําหรับโรงแรมในปี 2025

      Xu Hướng Nội Dung Mạng Xã Hội…

  • Tips & Trends
    • Smart Hotel Distribution: What Every Hotelier Needs…

      Maximizing Hotel Revenue: Advanced Channel Manager Strategies…

      The OTA Balancing Act: How a Channel…

      Tapping into Wellness Tourism: A Hotelier’s Guide

      Overcoming common challenges in channel management for…

  • News
    • Cloudbeds and STAAH partner to enhance channel…

      STAAH Achieves Prestigious Seamless Product Badge from…

      STAAH Product Updates You Can’t Miss –…

      Thoughtful Thursday – Reporting for Properties: Converting…

      Thoughtful Thursday – Matrix – Revenue Control…

  • Success Stories
    • The Komu Boosts Direct Revenue by 25%…

      Online Revenue Jumps 50% for Mangkuluhur Residences…

      23% more online bookings for Vivatel Kuala…

      STAAH boosts Indonesian resort’s direct bookings by…

      Nova Express Pattaya expands online visibility with…

  • Resources
    • All BLAAH BLAAH @STAAH Connectivity News e-Books Events Podcast Quiz Testimonials Webinars

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      STAAH’s new eBook to guide hoteliers through…

      BLAAH BLAAH @STAAH with Captain Mihir Deepak…

      BLAAH BLAAH @STAAH with Dia Mirza

      BLAAH BLAAH @STAAH with Avijit Arya and…

      BLAAH BLAAH @STAAH with Mauro Risch

      Connect with Expedia – Expand Your Reach…

      Alexa+ could earn “top-of-the-funnel” spot in travel…

      STAAH & Hotelbeds: A Powerful Partnership Driving…

      EMPOWERING CHANNEL PARTNERS: THE POWER OF CONTENT…

      STAAH’s new eBook to guide hoteliers through…

      STAAH ReviewMinder Playbook

      STAAH GDS Playbook

      The Expert Guide to Drive More Direct…

      BLAAH BLAAH @STAAH with Suwamana Wahyu Putra…

      BLAAH BLAAH @STAAH With Matthias Dybing And…

      BLAAH BLAAH @STAAH with Vikramjit Singh and…

      BLAAH BLAAH @STAAH with Suhail Kannampilly and…

      STAAH Weekly Hospitality Quiz: 17 January

      STAAH Weekly Hospitality Quiz: 10 January

      STAAH Weekly Hospitality Quiz: 20 December

      STAAH Weekly Hospitality Quiz: 13 December

      The Domain Hotel and Spa, Bahrain

      Pramana Experience (Indonesia)

      Merusaka Nusa Dua, Bali (Indonesia)

      Acappella Suite Hotel (Malaysia):

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The Ingredients to a Profitable Hotel Distribution Strategy

28 March 2018
Profitable Hotel Distribution Strategy


Understanding your audience and then being able to sell suitable inventory to them, on the right platform and at the right price is the key to a profitable hotel distribution strategy.


As the distribution landscape continues to evolve and complexities and costs grow, effective distribution and pricing strategies are more important than ever. To lay the foundation for success, make sure your strategy covers these areas.

Understand Your Target Audience

Understand Your Target Audience

What does your guest look like? What does this guest want? Once you understand this, find them on the platform they are most likely to visit. Selling a luxury suite on hostels.com is not a smart distribution strategy. Based on your product type, try and find niche platforms that will be suitable.

Your target audience will define the ecosystem of your most relevant distribution channels. Then keeping in mind the below points, you choose the ones that work best for you.

Cost of Acquisition

What’s Your Cost of Acquisition?

In this dynamic world, no distribution channel comes free of cost. Even direct bookings have a cost associated with it (website development and marketing). Understanding your costs, changing commission levels of online travel agents (OTAs) and other costs is essential.

NetRevPar is a good metric to understand this cost. It is defined as revenue per available room after subtracting the cost to acquire a guest. The formula often looks like this: rooms revenue – distribution costs (cost-per-click + native marketing + third-party commissions) / available rooms.

Once your cost per channel is established, making the choice to get the highest yield for your room becomes easier. Use your channel manager insights to derive this metric.

Direct Bookings

Get More Direct Bookings

It may not be free, but the reservations that come indirectly through your website or offline channels have the highest margins. Direct is widely accepted as the most profitable way to sell your room (albeit, it lacks the reach of OTAs!). Here are some points to consider if you want to build this channel further:

  • Build a strong loyalty program, one that benefits both the guest and you
  • Segment your guest and customize your offering to each group. Remember, you understand the guest better than any OTA – use this to your advantage
  • Offer value adds to guests to ‘win’ their trust – it’s all about loyalty and them spreading the good word about your property.

Booking Conversion Rate

Keep Your Eyes on the Booking Conversion Rate

Converting lookers into bookers should be your goal. After spending considerable resources – time and money – in getting a user to your website, it would be shameful if they left without taking any action. To improve the stickiness of users on your website, keep these simple tips in mind:

  • Deliver an excellent web experience, on mobile and other devices
  • Have a short look at book journey – your booking engine should be easy to find and even easier to book on
  • Make sure you have a secure site and booking engine
  • Use smart tools like WatchMyRate to show users competitor rates, highlighting rate parity and reducing the ‘switching’ behavior common to modern travelers

Daily Rates

Flex Your Daily Rates

Flexible daily pricing allows hotels to charge a lower rate on the days with more availability and yield up on the high-demand days. As a result, it empowers hotels to optimize every single booking and better manage distribution across all channels.

A similar approach should be applied to channel management, so in high times your distribution platforms should be yielded up, not shut down. When the demand is low, leverage discount channels to drive occupancy.


What are you doing to achieve an effective distribution network and resulting high-yield revenue? We’d love to hear about and share your tips and experiences. Email us at marketing@staah.com

The Ingredients to a Profitable Hotel Distribution Strategy was last modified: October 27th, 2022 by staah

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