How To Build An Effective Distribution Strategy

Maximize your reach

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Maximize your reach 〰️

As a short term rental owner or manager, your top priority is to maximize your property’s reach and get as many potential guests to book as possible. Using a combination of different channels will allow your business to be seen by as many potential bookers that are filtering for what you have to offer. In today's article, we will be discussing how you can build an effective property distribution strategy to launch in 2023.

Step 1. Identify your target markets

Although it’s a good idea to be listed on a broad range of distribution channels, it’s not about listing on as many channels as possible. You are better off choosing the most popular channels among your target audiences. Start by identifying your ideal guests… Are they young or old? Where do they live? Are they luxury travelers? Are they travelling for business or just passing through? We go into specific details about this topic in the customer journey article. - The Customers Journey: Finding And Booking Your Property — Hostimize

A quick generalization to get you thinking would be younger people being more likely to search on metasearch engines to find better deals due to their budgets.

Step 2. Choose your distribution channels

Next, it’s time to choose the booking channels your target markets are most likely to use. Here are the main types of online distribution channels in the short term letting industry:

Direct channels

Our favourite distribution channel is the #BookDirect website route. Owning your own website that allows guests to book directly through you and not a middle-man. You have complete control over your design, copywriting, data and overall customer experience. Favoured by most bookers due to lower prices. (no third party fee’s)

Create a #BookDirect website today with us at Hostimize - Website — Hostimize

Online Travel Agencies

Booking.com, Expedia, Airbnb and so on. They are a crucial component of any modern day distribution strategy. With a vast reach and a large pool of warm customers, creating optimized listings on these types of platforms will increase your overall bookings. They do often charge a commission per booking, so keep this in mind when pricing your property.

Some examples of OTA’s

• Booking.com

• Agoda

• Airbnb 

• Expedia 

• Trip.com 

GDS

Global distribution systems are worldwide reservation systems that act as a bridge between bookers and suppliers. Often used by hotels to attract corporate customers, this may be a viable option for your distribution strategy for midweek bookings.

Some examples of global distribution systems

• Amadeus

• Sabre

• Galileo

• Apollo

• Pegasus

Metasearch engines

Metasearch engines like Tripadvisor, Trivago and Kayak display your properties rates and availability from a variety of booking sources, allowing potential bookers to easily compare offerings on one page. Pairing with your direct booking channel, visitors will need to click through to your website in order to make a booking. You can list your properties for free or pay per click to be better promoted.

Some examples of metasearch engines

• Kayak

• Trip Advisor 

• WeGo

• Skyscanner

• Trivago

Step 3. Optimizing your distribution channel listings

Optimizing your listings means ensuring the content you share provides all the information potential guests need to make a decision to book your property. This includes high-quality photos, compelling descriptions and information about your location, amenities, and other features that appeal to your target markets.

Step 4. Implement your pricing strategy

Use a dynamic pricing strategy whereby you adjust your rates according to changes in occupancy, market conditions, and competitor activity. Generally, property owners maintain rate parity across their third party listings and then offer a slight discount when booking direct. Map out your pricing for the year and make sure you stay competitive.

Step 5. Track acquisition costs per channel

Once you’ve launched your distribution strategy, you’ll want to keep a close eye on performance. To understand which bookings are the most profitable, calculate the costs of acquisition on each channel, including commissions, cost-per-click fees, transaction fees, and other costs. For direct channels, estimate the costs of hosting, booking engine fees, domains and so on.

For tracking the overall profitability of your distribution mix, it is always good to have some performance metrics and key performance indicators.

Understanding Property Performance Metrics And KPIs — Hostimize

Conclusion 

As a short term rental owner or manager, it’s important to have a clear understanding of the various distribution channels available to you and how you can use them to maximize your reach and increase your bookings. If you need any help putting together your strategy, make sure to get in touch with our team!

(When you get to this stage of your short term letting journey, you will start considering the use of a CHANNEL MANAGER… The game changing tool in the hospitality industry that allows you to connect your property to multiple distribution channels and manage your rates and availability in real-time, all from one centralized platform… Certainly a conversation for another day)