7 ways to Optimize Your Hotel’s Distribution Strategy

Consistently placing your inventory in the most profitable channels is essential for successful distribution. Yet distribution remains one of the most complex tasks facing hoteliers.

Hotel profitability is correlated directly with the deployment of effective distribution strategies, ones that are resilient and adaptable to real-time. Here are a few ways for your hotel’s distribution team to strengthen its approach.

Seven ways to Optimize Your Hotel’s Distribution Strategy

Below you’ll find seven ways for your hotel’s distribution team to strengthen its approach and optimize revenue.

1. Combine Instinct with AI

An adaptable distribution system requires rate and inventory management that responds to real-time demand data. Yet, that’s not the simplest feat in dynamic market conditions — inflation, staff shortages, and erratic demand wreak havoc on even the most seasoned veteran. Combining your expertise with artificial intelligence and machine learning will augment instinct with data-driven recommendations that put inventory in the ideal channel.

2. Guest-centric Distribution

Instead of focusing on the channel, focus on guest-centric distribution that puts the guest at the center of your strategy. To do this effectively, personalization begins with relevant, accurate guest data. From there, offers can be targeted to specific segments based on their preferences and real-time demand data.

3. Prioritize Profitable Distribution

The typical guest journey to purchase is more complex than ever, stretching across multiple channels, platforms, and devices. That complexity is why Google Analytics is transitioning to GA4: brands need to be able to evaluate which channels have directly or indirectly influenced each booking. Given these changes, update your analytics to prioritize the most profitable distribution channels first.

4. Optimize those Upsells

Your distribution strategy should also account for upsell revenue, as personalized ancillaries can push profitability to the next level. Effectively placing targeted offers during the guest journey also creates a positive impression with guests, which can further establish your brand’s positive reputation. For instance, if a channel produces only average booking values but above-average upsells in the pre-stay email campaign, upsell revenue should be included when calculating channel conversions.

5. Don’t Neglect the Phone

Your reservations agents can make or break your distribution strategy. For instance, call center agents can close the deal if a guest has a question about a potential stay. So, optimize your phone operations to capitalize on every inbound call. Each has the potential to increase conversion and make your overall distribution strategy more profitable.

6. Look for Unexpected Bright Spots

Keep a close eye on your pace report to identify anything from the ordinary. There’s never a dull moment when it comes to distribution – you have to look closely to identify promising potential new distribution opportunities. These may be in the form of unexpected demand from specific geographies, segments, or demographics. Or perhaps there’s an unusual spike in bookings for a particular date – dig deeper for actionable insights.

7. Engage Guests and Travelers

Engage past guests and future travelers to maintain your hotel’s reputation and stay top-of-mind. First, solicit reviews from past guests to capitalize on your hotel’s reputation. By driving positive reviews, you’ll see more substantial conversions across all channels, making for a more profitable distribution strategy overall. And be active on social media so that travelers in the research phase are more likely to trust your hotel over others under consideration.

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