Hotels manage rates across multiple channels through a channel manager connected to the PMS. Rate changes made in the PMS or channel manager are pushed to all connected OTAs simultaneously. Derived rates (e.g. OTA rate = base rate + 15%) are calculated automatically, so a single base rate update updates all channels at once.
The Challenge of Multi-Channel Rate Management
A hotel listed on three OTAs plus its own website has four channels to keep updated. Without a channel manager, every rate change requires logging into each platform separately and making the update manually. This is time-consuming, error-prone and means rates are often inconsistent across channels.
A channel manager solves this by acting as a central rate management hub. One update in the channel manager pushes to all connected channels simultaneously.
How Rate Distribution Works
The channel manager maintains rate plans for each room type. When you update a rate in the channel manager, it pushes the new rate to all connected OTAs via their APIs. The update typically reaches all platforms within seconds.
Most channel managers support derived rates — rates that are automatically calculated as a percentage above or below a base rate. For example:
- Base rate: 2,000 THB
- Booking.com rate: base + 18% = 2,360 THB (to cover commission)
- Expedia rate: base + 20% = 2,400 THB
- Direct rate: 2,000 THB (no commission)
When you update the base rate to 2,200 THB, all derived rates update automatically.
Rate Plans
A rate plan defines the price, cancellation policy and inclusions for a specific booking type. Common rate plans include:
- Standard flexible rate — full price, free cancellation up to 24–48 hours before arrival
- Advance purchase rate — discounted price (typically 10–15% off), non-refundable
- Non-refundable rate — lowest price, no cancellation or modification
- Breakfast included — room rate plus breakfast package
- Long stay rate — discounted rate for stays of 7+ nights
Each rate plan can be distributed to specific channels. For example, you might offer the advance purchase rate on Booking.com but not on your direct booking engine.
Restrictions
Restrictions control how and when rooms can be booked. Common restrictions include:
- Minimum stay (MinLOS) — require a minimum number of nights (e.g. 2 nights minimum on weekends)
- Maximum stay (MaxLOS) — limit the maximum number of nights
- Closed to arrival (CTA) — prevent new bookings that check in on a specific date
- Closed to departure (CTD) — prevent bookings that check out on a specific date
- Stop-sell — close availability on a date entirely
Restrictions are pushed to all channels through the channel manager, just like rates.
Rate Parity
Rate parity means offering the same rate across all channels. Most OTA contracts include rate parity clauses that require hotels to offer the same rate on the OTA as on any other channel. See: Rate Parity Explained.
Seasonal Rate Management
Setting seasonal rates in advance — higher rates for peak periods, lower rates for low season — is one of the most effective revenue management practices. A channel manager makes it easy to set date-specific rates that apply automatically when the dates arrive. See: Seasonal Hotel Pricing.
Frontdeskey Rate Management
Frontdeskey's integrated PMS and channel manager provide a single interface for managing rates across all channels — with derived rates, seasonal pricing and restriction management all built in.
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