Distribution & Channel Management
Channel Mix Management: Every Distribution Decision Has a Price Tag
Where your bookings come from determines what they're worth. Two hotels with identical ADR can have very different net revenue depending on their channel mix.
4 min read
Channel mix management means actively shaping the proportion of your business that comes through each distribution channel — OTA, direct website, GDS, voice, and wholesale — with a clear understanding of what each channel costs and what each contributes net. OTA volume is easy to generate and expensive to maintain.
Direct bookings are harder to acquire and significantly more profitable. GDS production is driven by corporate negotiated rates and varies by travel manager relationship.
Wholesalers provide volume but at rates that need careful management to prevent parity erosion. A strong channel mix strategy doesn't mean minimising OTA presence — it means understanding the role of each channel in your demand mix and optimising the blend.