What is the meaning / definition of Direct Channels?
The term Direct Channels refers to the revenue generated in a specific distribution channel of the Direct Hotel Market Segment – such as through the phone, email, Live chat, Messaging services or the official hotel website. Driving sales from Direct Channels is essential for anyone in hotel management to cut down on commissions from other channels, such as OTAs, and increase profit of a property.
Understanding your direct channels is essential in an effort to reach the full revenue potential of your hotel.
Keeping track of channels is important in order to maximise marketing and revenue. For example, if you know that your official website´s sales are lagging,
you may want to focus on that, giving the design and performance of your website a critical review. In this way, you can be aware of the fact that investment into increasing direct sales is necessary and actions need to be taken to get back on track.
Managing the Channels is commonly known as Channel Management and refers to the employed distribution policy of a hotel. It is an important tool in Revenue Management and your Distribution Strategy
Read Also our Blog Post About Direct Sales:
- How to Achieve 50% Direct Sales for Your Hotel (or more …)
- Direct Sales
- Market Segmentation