What is a channel manager? All you need to know

Why is it important to use a channel manager?

While it’s possible to manage your inventory by connecting to each channel’s extranet and manually updating availability, rates, and inventory, it’s not very efficient, and it’s also prone to human errors. With a good channel manager, you can save time, get more bookings, and distribute room inventory easily.

The following are the top reasons to use a channel management system:

1. Market reach

A channel manager puts your property in front of more travelers than ever before. Since it’s relatively simple to connect to a new booking site, there’s a low investment of time and resources to push your inventory. This means that properties of all sizes can now access new, global regions and segments (corporate/leisure/group) that were difficult to access via manual channel management.

Multiple booking sources mean more visibility – and, ultimately, more bookings. This leads to higher occupancy, especially in times of low demand when it’s needed the most.

2. Higher ROI

Channel managers create new ways to sell existing inventory, resulting in a higher return on your investment in both your sales and marketing efforts. With pooled inventory, advanced rates with discounts or non-refundable rates, and upsell integrations, hotels optimize revenue management with smart pricing strategies.

Another way to sell a room is by using shared inventory, which is when you sell the same room under multiple room types. An example of this would be selling a room as either a dorm room or a private single room. Of course, the risks here are selling the same room twice. By listing shared inventory via a hotel channel manager, the system automatically ensures that any linked room will never be sold twice.

Real-time updates also improve search performance on OTAs, which rank properties higher if they have real-time updates of ARI. When content is accurate and updated, properties enjoy better positioning in search results, leading to higher ROI.

3. Optimal distribution

Since each OTA has its own cost and commission structure, a profitable distribution strategy requires careful consideration of which sales channels to use, how much inventory to allocate to each, and how to adapt that channel mix to achieve your objectives.

By using different channels like OTAs, metasearch websites, B2B wholesale or niche accommodation booking sites, you make sure your property is visible to the right type of guest. For example, property owners can shift inventory from big-name OTAs (like Booking.com and Expedia) to more niche OTAs that sell to specific travelers, such as boutique-only OTAs (Mr and Mrs Smith), last-minute bookings (HotelTonight), or even alternative outdoor lodging (GlampingHub).

Having a distribution strategy that consists of both indirect and direct booking channels helps ensure optimal occupancy and profitability.

4. Money and time savings

It takes a while to get familiar with each channel’s interface. Without any tool, it’s a time-consuming job to log into each channel’s extranet and update ARI several times per day. That time cost correlates closely to the financial cost of paying someone on staff to manually manage distribution.

Software also makes the pursuit of profitable distribution much simpler. With a single view, hoteliers have more granular control of distribution costs. This saves money by emphasizing lower-cost online distribution channels first and then moving inventory to the higher-cost ones to fill gaps in demand.

What to consider when choosing your software

Best-in-class channel managers are built to connect to hundreds of booking sites reliably and accurately, with near-perfect uptime. Here are key features to consider.

Connectivity

The most advanced channel management platforms today offer advanced API connections with two-way synchronization. Updates are made in real-time, and it’s all cloud-based, which eliminates the need for on-property technology and allows for greater flexibility and speed. The system is very powerful as it supports up to millions of bookings per day.

Channel partners

Choose a provider that connects to various booking sites and global markets so you can reach travelers from around the world. Options should include big-name OTAs, niche OTAs, metasearch engine websites, and GDS (global distribution systems). Check if the provider charges additional fees or commissions for connecting various channels.

Functionalities

Look for simplicity, a product that’s user-friendly, intuitive, and meant for self-service. It’s about adding a tool you’ll be using consistently. Other useful advanced options include payment processing, multi-currency support, reporting, multiple users and user roles, etc.

PMS & booking engine integration

Your channel manager should also integrate with your other tools, especially your property management software and booking engine. This way, all of your hospitality management systems will be in sync, and you can log into one system to manage them all, saving countless hours and avoiding manual errors.

Channel managers and property management systems

Your property management system (PMS) is your hotel’s control center—it manages reservations, check-ins and check-outs, rates, payments, guest communication, reporting, and more. A channel manager is your distribution engine—pushing that availability, pricing, and restriction data to all your booking channels and pulling reservations back into your PMS.

The way these two systems work together can make or break your efficiency. Today, there are three main setups:

1. Platform approach

Platforms like Cloudbeds offer a PMS and channel manager into one solution, giving you:

• One login, one dashboard – Manage operations and distribution from a single place, with all reservation, guest, and pricing data in sync.
• Real-time updates – When you adjust rates or close a room, it updates everywhere instantly, preventing mismatched prices or accidental overbookings.
• Full feature alignment – Sync amenities, photos, rate plans, and promotions across all channels without managing separate integrations.
• Faster updates from OTAs – One connectivity team applies and tests API changes right in your main system.
• More built-in tools – Systems like Cloudbeds also include a commission-free booking engine, payment processing, marketing tools, and more.
• One support team – One partner to call, one agreement to manage.

2. Separate PMS & integrated channel manager

Some properties use a PMS and a channel manager from different providers, connected via an integration. This setup can still work well if:

• The integration is strong – Check that your PMS and channel manager pass all data in real time without delays.
• You can manage two vendors – You’ll have two support teams and two contracts, so coordination is key when issues arise.
• You double-check compatibility – Any OTA updates must be applied on both sides of the integration.

Cloudbeds also supports this setup through integration partners.

3. Channel manager without a PMS

While possible, running only a channel manager usually means handling key operations manually—like guest check-in/out, housekeeping coordination, or invoicing.

You’ll need to decide:

• How will you track and update reservations internally?
• Where will guest data and payment info live?
• How will you generate invoices and reports?
• How will you manage communication with potential guests?

This approach can work for very small properties, but most hotels quickly outgrow it as daily tasks multiply.

What to consider when choosing a provider

Here are the must-haves and questions to ask when selecting the best hotel channel manager for your hotel.

Pricing model

Is the provider working on a per-booking commission basis? Does a flat fee/subscription model apply? Are there mandatory setup fees? Each technology must serve a clear purpose with a compelling return on investment. Commission-based or channel-based pricing gets complicated and costly.

Onboarding and ongoing support

Before deciding on a provider, you’ll want to know what it takes to get started. How long is the onboarding process? Is there guidance for setting up your account? What kind of support do they offer? How robust is the knowledge base for self-service learning and troubleshooting?  

Industry recognition

Major OTAs also run programs for software partners, and each year they recognize Preferred Partnerships that fulfill the highest technical benchmarks of connection. Also, look for companies that offer a free trial or free use of a demo account so you can test the tech out before you commit.

Safety and security compliance

When it comes to systems that handle sensitive data, like your rates and guest information, you’ll want to ensure your data is secure. Inquire about compliance: PCI DSS, SCA, guest data compliance, and GDPR.

Customer reviews

Check online reviews on reputable software reviewing sites like Capterra, Software Advice, and Hotel Tech Report.

What to look for in a channel manager for Booking.com

If Booking.com is one of your main OTAs and you want to ensure effective distribution, look for a channel manager with the following features:

• 2-way API connection
• Rate parity adjustment
• Pooled inventory management
• Advanced rates integration
• Guest credit card integration
• Advanced: messaging, no-show reporting, etc.

Another consideration is whether your chosen vendor has earned a place in Booking.com’s Premier and Preferred partners program. Premier is the highest category for software companies with the best-in-class connection. Requirements include robust, fast, and stable connection, Booking.com product adaptation, number of connected properties, and more.

What to look for in a channel manager for Airbnb

If your property lists (or plans to list) on Airbnb, there are a few Airbnb-specific features you’ll want in a channel manager to get the most out of that connection and stay competitive:

• 2-way API connection
• Content and images synchronization
• Taxes, fees & pricing rules support
• Advanced pricing features

Airbnb is also evolving as a distribution channel in its own right. In August 2025, CEO Brian Chesky told financial analysts that the company is planning to go “significantly more aggressively into hotels,” pursuing hotel supply more directly than in the past and increasingly positioning the platform as an alternative to traditional hotel booking sites rather than solely a short-term rental marketplace.

This shift highlights why strong connectivity and feature support in your channel manager are becoming even more important if you sell on Airbnb — the platform’s strategy may increasingly influence how guests discover and book your rooms.

Similar to Booking.com, Airbnb also recognizes vendors that go above and beyond when it comes to technology. Airbnb Preferred Software Partners are recognized by Airbnb for providing the “functionality and software connections that meet or exceed all technical benchmarks” and “collaborating with Airbnb across all program initiatives.” To ensure the most reliable connectivity with Airbnb, look for Airbnb Preferred Partners.

8 best channel managers for hotels

Your distribution tech should be making life easier, not adding more spreadsheets to your week. If you’re still manually updating extranets or juggling multiple logins, it’s time to upgrade. A good channel manager will:

• Keep rates, availability, and restrictions perfectly in sync across every OTA and your website
• Prevent double bookings by updating in real time
• Free up your team’s time to focus on revenue, not repetitive admin
• Integrate seamlessly with your PMS and other hotel systems

We’ve pulled together eight of the best options worldwide—trusted by properties of all sizes to drive more bookings with less manual work:

Cloudbeds

The Cloudbeds Channel Manager provides real-time, two-way API connectivity to hundreds of global and regional booking channels, including major OTAs, metasearch platforms, and niche marketplaces. Pricing, rates, availability, inventory, and restrictions are synced instantly from a single dashboard, while reservations and cancellations flow directly into the PMS with no manual intervention.

What sets Cloudbeds apart is how tightly channel management is integrated with the rest of the platform. Distribution doesn’t live in a silo. Inventory, rate plans, promotions, payments, and guest data all stay aligned across systems. This allows hotels to streamline operations, move faster, reduce errors, and manage distribution as part of a broader revenue and guest strategy.

How Sweet Accommodations scaled distribution without losing control

Starting as a single hostel in Barcelona, Sweet Accommodations has grown into a diverse portfolio of hotels, hostels, serviced apartments, and co-living spaces across Barcelona, Sevilla, and Lloret de Mar. As the business expanded, managing availability and rates across multiple property types and booking channels quickly became a challenge.

Their legacy systems made distribution harder to manage at scale, limiting flexibility and increasing the risk of errors as the channel mix grew.

By switching to Cloudbeds, Sweet Accommodations centralized distribution with a modern, API-driven channel manager that keeps rates, availability, and inventory synced in real time across both major OTAs and niche platforms. This allowed the team to go beyond “sell everywhere” and instead focus on selling through the channels that best matched their guests and locations.

The results speak for themselves. With distribution automated and centralized, Sweet Accommodations saw an: