Commercial operations
A reservation represents more than its room rate. The channel a guest uses affects acquisition costs, booking conditions, communication and the way the hotel prepares for the stay.
A sound hotel distribution strategy therefore considers the net value of a booking and its fit with the hotel concept. The aim is a channel mix that attracts suitable demand and remains manageable for the team.
At a glance
- Give every channel a commercial purpose.
- Compare the full acquisition cost.
- Assess bookings from an owner’s perspective.
Give each channel a clear purpose
The hotel’s own website can support direct communication and control over presentation. Online travel agencies can provide reach among guests unfamiliar with the property. Corporate agreements and group channels can support particular demand patterns.
Their value differs by hotel, market and period. For each channel, ask which segment it reaches, what demand it adds and when that demand is needed. Reconsider channels without a clear purpose.
Calculate the full cost
Commission is visible, but it is not the complete acquisition cost. Include paid marketing, booking technology, payment charges, discounts and any additional benefits. A direct booking is not automatically free to acquire.
Compare channels over equivalent periods and on the same accounting basis. Deduct each cost once and document whether figures include or exclude taxes. Include cancellations: booked revenue and realised revenue are different measures.
Connect distribution with operations
An attractive channel rate can include conditions that create additional work. These may involve late changes, specific billing arrangements, unusual arrival patterns or incomplete guest information.
Include Front Office and Finance in the evaluation. They see where reservations require extra processing. Consider length of stay and additional spending as well, so that average room rate is not the only basis for assessment.
Make direct booking convincing
A clear website, reliable availability and understandable conditions help guests make an informed choice. Explain what the booking includes and why the offer suits their stay. Avoid benefits that the operation cannot consistently deliver.
From my own practice
the owner’s perspective at Kasteel Kerckebosch
As co-owner and managing director of Kasteel Kerckebosch, I examined the costs behind a booking in considerable depth. When it is also your own hotel, the relationship between revenue, costs and available resources feels more immediate. In my own experience, this led me further into the detail than I had previously gone in an employed role.
This does not mean employed managers are less careful. The owner’s perspective adds a direct awareness of what remains available for the operation and its next investment. An attractive booking should still generate value after acquisition costs, commitments and operating effort.
I carry that perspective into my assignments: assess each channel in the context of the whole business. Ask what demand it genuinely adds, what the guest expects and what the hotel must provide to deliver the stay well. Gross revenue alone is insufficient to judge a distribution decision.
Start with a channel review
Within thirty days, the commercial lead should review the main channels with Finance and Operations. Assess realised net room revenue, cancellations, length of stay and processing issues. Select one adjustment and monitor its effect over eight weeks.
The strongest hotel distribution channels are those that fit the property’s commercial needs, guests and operating capabilities.
