What Are the Differences Between a Channel Manager and PMS?

Scaling your vacation rental business can be incredibly rewarding but it can also quickly become overwhelming. Managing numerous listings, calendars and guest inquiries can feel like being buried under a mountain of tasks. 

Amidst the plethora of tools out there, Property Management Systems (PMS) and Channel Manager are two big players. They might look similar but the question is do they both hold the key to vacation rental utopia or are they completely different?

Distribution Vs. Operations

Channel manager

A channel manager is a software tool that bridges the gap between your listings on various online travel agencies (OTAs) like Airbnb, Vrbo and Booking.com. It centralizes your inventory and rates allowing you to update everything from one platform. This eliminates the need to log in to each OTA and update listings manually.

How does it work?

Channel managers connect to OTAs through API integrations which allow for real-time communication between your listings and the booking platforms. When a booking is made on one site, the channel manager updates the availability on all other connected sites instantly ensuring your calendars are always up-to-date.

Apart from APIs, channel managers can also connect through iCal connections though these connections aren't as dependable because they don't offer instant updates. Sometimes, it can take a few hours for an iCal sync to kick in. That means you could end up with double bookings in the meantime.

Benefits of using a Channel manager

• Avoid double bookings: Automatically update your calendar across all booking sites to prevent double bookings and avoid the headaches they cause.

• Save time: Manage all your listings from a single dashboard making it super easy to update prices, descriptions and availability all in one go.

• Expand your reach: Connect to niche booking sites and tap into more specific audiences potentially attracting new types of guests to your rental.

• Centralized rate management: Adjust your rates for all platforms from one spot ensuring consistency and maximizing your revenue potential.

Property management software

A PMS is more than just about getting your listings out there. It's like your all-in-one solution for running your short-term rental business smoothly. Imagine a central hub for managing reservations, automating tasks, generating reports and more.

How does it work?

A PMS seamlessly connects with booking giants like Airbnb and Vrbo, team management tools, dynamic pricing apps and more. Imagine everything talking to each other – reservations, guest messages and the status of your rentals are all in one place with live updates happening instantly.

But a PMS goes beyond organization. It automates those boring tasks that steal your time like sending booking confirmations, manage guest reviews, assigning cleaning crews and more.

Benefits of using a PMS

• Automated messaging: Save time by automating responses to guest inquiries, booking confirmations and check-in instructions.

• Central calendars: Keep all your reservations in sync across multiple properties and listing sites with one easy-to-manage calendar.

• Payment processing: Simplify payments by automating booking payments, security deposits and payouts to property owners.

• Reports and analytics: Get a clear view of your business performance with detailed reports on occupancy, revenue and more.

• Boost direct bookings: Create a direct booking site with built-in tools bypassing OTAs and their commissions.

• Task management: Automatically assign tasks to your team based on bookings ensuring timely cleaning and maintenance.

• Guest communication: Handle all guest interactions from a unified inbox so you never miss a message.

How do They Work Together?

While a property management system (PMS) and a channel manager have their own functions, using them together creates a powerhouse that saves you time and money, boosts occupancy and increases revenue.

Once you've decided to use these systems, it's a good idea to choose a PMS with a built-in channel manager such as Hostaway. This way, you don't have to juggle two different systems and can count on the same customer support team for everything from setup to support.

Plus, having both systems designed to work together means they'll run smoothly and efficiently.

Choosing The Right Tools

When it comes to your vacation rental business, it's all about finding what fits your needs. If you’re managing multiple properties and handling bookings across several OTAs, a channel manager is a must-have. It keeps your listings in one place and updates availability in real-time, saving you the hassle of logging into each site and dodging double bookings.

But if you're aiming to streamline everything, a PMS is your go-to. It handles everything from pricing and cleaning schedules to guest communication and financial management. This is especially useful if you have a large portfolio or complex operations with multiple teams.

Consider your portfolio size, how complicated your setup is and your budget when making the call. Investing in a solid PMS or channel manager can cut costs in the long run by amping up efficiency. Get the right tool and you'll boost bookings, smooth out operations and keep those guests grinning from ear to ear.

FAQs

1. What does a Channel Manager do?

A channel manager is your lifesaver for handling listings on multiple online travel agencies (OTAs) like Airbnb, Vrbo and Booking.com. It keeps everything in sync – your availability, rates and bookings – across all platforms in real-time. No more worrying about double bookings or having to log in into multiple sites to update info.

2. Do all PMSs include a Channel Manager?

Not all of them, but many do. Some PMSs have built-in channel managers while others can easily integrate with third-party channel managers. For example, Hostaway an all-in-one PMS that includes a robust built-in channel manager. It's always a good idea to check the features before choosing one to make sure it meets all your needs.

3. How do Channel Managers and PMSs work together?

They make a great team! Your PMS handles the operational stuff like reservations and guest communications and the channel manager keeps your listings updated across all OTAs. When a booking comes in, the PMS updates the channel manager, which then syncs the info across all platforms. It’s seamless and efficient.

4. What kind of support can I expect from PMS and Channel Manager providers?

Most providers offer solid support including setup assistance, training resources and ongoing tech support. They usually have knowledge bases, tutorials and community forums to help you out too. If you run into any problems, help is just a call or click away.

5. How can I ensure that my PMS and Channel Manager stay up-to-date with industry trends?

Pick a provider like Hostaway that’s always innovating. Look for regular software updates, new feature releases and great customer support. These signs show that the provider is keeping up with industry trends and improving their tools continuously.

6. Can these tools integrate with other software?

Absolutely! Many PMS and channel managers offer integrations with various third-party applications like dynamic pricing tools, payment processors and even smart home devices. This helps streamline your operations and enhances functionality.