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OTA Commission & Merchant Payout Settlement Calculations

For hotel or BnB businesses, leveraging on the Online Travel Agents (OTAs) such as Agoda,, Airbnb, Expedia, and many more to drive booking sales is common, especially in Southeast Asia region. Certainly, this does not come free. Based on the Agency Model, OTAs will charge the business a commission, ranging from 3% to 30%, for each confirmed booking.

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Hotel Rate Parity. What Is It About?

Some might say that offering rate parity is one of the fairest ways of conducting rate strategies. So, what does rate parity actually means? 

Hotel rate parity is when the hotels are implementing the same rate across all distribution channels including their own hotel websites. It is a legal agreement between the hotels and Online Travel Agencies (OTAs) where they agree to offer the same rate on all platforms that they sell regardless of how much commission they have to pay to OTAs. Hotels are also not allowed to undercut the room prices that OTAs display on their platforms.

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How to Choose the right Channel Manager for Hotels

A channel manager helps you to continuously sell and manage your maximum inventory through various distribution channels and provides updated price and rooms allotment information.

Finding the right Channel Manager for your Hotel can be difficult, especially when there are so many options available online. Because we know that you’re not the only one facing these difficulties, we decided to help you by sharing the most important aspects you should look for when choosing your channel manager to help you make the best choice.

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Hotel Channel Manager In Malaysia

OTAs play an important role in the hotel industry and online booking nowadays. There are certain times where people love to make a booking through the OTAs channel. In addition, the research found that more than half of the bookings were made through OTA platforms. With this, hotels should not want to miss the opportunity by increasing their properties more visible online.

Did you know that you can distribute and sell your maximum room inventory to many OTAs without worrying about overbooking and disparity rate issues? Through a Channel Manager, hotels can monitor their real-time availability and rates across all OTAs, thus helping to adjust and update seamlessly across all the channels.

If you are looking for a Channel Manager for your hotel to make your job easier and at the same time want to increase the hotel's ROI, let's consider this Top 5 Popular Channel Manager in Malaysia:

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PMS and Channel Manager Integration

Ever since technology has changed the landscape of the hospitality and tourism industry, and we are now in the year 2021, many hotels have already adopted smart hotel solutions for their business. However, we believe that there are thousands of hotels outside there that missed out on this opportunity, haven’t yet adopted the technology, and maintain the manual work in the daily operation. 

Despite the above mentioned, we know that every hotel's business end goals want to maximize their hotels' revenue. It can be achieved by reducing unnecessary costs, avoiding human errors, driving more bookings and selling maximum inventory. 

In this article, we are going to talk about Property Management System (PMS) and Channel Manager, how both of them work and connect to your online distribution channels so that they can help you to increase more hotel revenue. 

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7 Reasons Why Hotels Should Invest in a Channel Manager

You can’t deny that filling up the rooms is the hardest battle for hoteliers. In the hunt for more guests, hotels have varying channels to bring in more bookings. However, managing them manually is time-consuming and less effective.

One hotel system that could help and benefit hoteliers is the Channel Manager. Well, there’s no doubt that some hoteliers still not convinced of how technology could transform the hotel business. This is why we’ve listed 7 reasons why hotels should invest in a Channel Manager.

Read also: What is a Channel Manager?


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Hotel PMS and Channel Manager

Have you ever imagined how does the revolution of technology influences room occupancy, hotel revenues, and guest experience? How does the Property Management System (PMS) optimize hotel management?

To understand how technology and the Internet influence the day-to-day functioning of a hotel, it is important to realize the connections between the key components of the data flow chain, namely the PMS, Online Travel Agent (OTA), and Channel Manager.

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How Does A Channel Manager Work?

Imagine you have many guests coming to book their stay with your hotel whereas you only have one front desk staff to entertain them. Guests are complaining as they are waiting for their turn. Then eventually, some of them walk out of your hotel and decide to stay at another hotel. Aren’t you losing your guests already?

Manually managing your room booking is time-consuming and less efficient. You may need to hire a lot of staff to handle those processes. If implementing with channel manager software, you can manage your room distribution smoothly and effectively. With that in mind, this article is all about helping hotel owners to run their hotel businesses better through channel manager software.


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What is a Channel Manager?

Our previous blog articles have been discussing on hotel Property Management System (PMS). In order for a hotel PMS to operate smoothly and effectively, it needs a specialized integration. According to, an online magazine for the hotel, hospitality, and travel industry, a hotel PMS Software should have the following integration:

  • Channel Managers
  • Check-in Apps
  • Revenue Management Software
  • Reputation Management Systems
  • Marketing Software
  • Key Card Systems
  • Energy Management Systems
  • Point of Sale Software
  • Entertainment Systems
  • Payment Systems
  • Business Analytics Software

The way you manage your distribution determines how profitable your hotel business is. It’s an important thing to ensure that your rooms are reachable for your prospective guests. Make your rooms visible! This is why a hotel must have Channel Manager software for a strong distribution strategy. In this article, we will discuss what a Channel Manager is and the importance of its integration with PMS.


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Hotel Overbooking Strategies

As a part of a hotel’s revenue management strategy, overbooking has its pros and cons. While overbooking in the perspectives of a hotel industry aid in maximizing occupancy and revenue, it can also negatively ruin your brand causes a financial loss if it does not have a strategically planned. 

Early check-outs, no-shows, and cancellations contribute to hotel losses while walk-in guests and those who overstay increase its revenue. These are the reasons hotels overbook, to minimize losses and maximize revenue.


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