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.

Go for a smart and dynamic distribution strategy

Every distribution strategy will benefit from the right strategic adjustments. Small changes, like aligning promotions with demand fluctuations or fine-tuning OTA partnerships to protect profit margins can drive significant results.

For independent hoteliers, the real opportunity lies in implementing these tactics based on accurate, real-time data. While there’s no one-size-fits-all approach, the right technology can tailor your distribution strategy to your unique property and market.

That's where Smart Distribution by Lighthouse comes in. While traditional channel managers simply sync rates and availability between channels, Smart Distribution goes much further. By combining channel management and dynamic pricing in one AI-powered solution, it optimizes your distribution from A to Z.

• Always offer the right price on the right channel
  Based on your performance, competitor rates and demand trends, Smart Distribution adjusts your rates, restrictions and channel mix for the best results.

• Reach your full revenue potential
  Prioritize direct bookings, reduce commission costs and get maximum profit from your reservations. Lighthouse customers report a 19% revenue increase on average, with an ROI of more than 50 times the monthly cost.

• Save time through trusted automation
  Eliminate tedious tasks such as manually adjusting prices, updating room availability and double-checking each channel to save hours of time every week.

• Minimize the risk of errors and overbookings
  Avoid disappointing guests and losing revenue by keeping your prices and availability accurate across all channels, always.

• Optimize your channel mix with ease
  Prioritize your best performing channels and replace the ones that hurt your profitability based on intelligent recommendations.

• Choose the right OTAs
  The tool surfaces new channel opportunities for you, so you're can tap into new markets and become visible where potential guests are looking.

• Leverage industry-leading intelligence
  Outsmart your competitors and win the distribution game thanks to the most trusted hospitality data.

• Stay fully in control
  Enjoy a simplified overview of your entire distribution strategy, complete with actionable availability, pricing and competitor insights.

Need help fine-tuning your distribution strategy? Contact us today to learn more about our platform for independent hotels.