How To Use Channel Markups To Optimize Your Distribution Strategy

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There’s no doubt that listing properties on multiple channels drives additional revenue for your portfolio. And channel management software, like Beyond’s Relay, makes it easier than ever to automatically post prices everywhere and avoid double bookings.

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But when it comes to honing in on an effective distribution strategy, where do you begin?

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Leveraging channel markups, which increase the daily price on each channel by a percentage, can help you drive booking volume to your more profitable channels and improve average daily rates (ADRs).
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Beyond’s Relay supports two types of channel markups: static b2b email list channel markups and dynamic channel markups. Let’s take a look at the background on each and see where you might want to start.

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How Revenue Managers Think About Channel Markups
Traditionally, property managers have used static channel markups to cover the cost of the OTAs. Accounting for service fees feels great, but there’s more to the story—channels have a few hidden costs, risks, and advantages that static channel markups don’t cover. For example:

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The costs of distribution are evolving with the vacation rental industry. The more tools that vacation rental revenue managers have to combat this type of change, the better.
The true opportunity cost of a booking on an OTA versus a booking on your direct site goes beyond OTA fees: booking windows, willingness to pay, and demand trends across the OTAs and your direct site are fundamentally different. Because of this, static markups can lead to underpricing high season and overpricing low season on the OTAs.
To help our Relay customers take their distribution strategy to the next level and work with, instead of against, these costs, risks, and advantages of listing on OTAs, our team built Dynamic Channel Markups.

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