Hotel room wholesalers act as intermediaries between travel suppliers (hotels) and travel agents, providing a vital role in the distribution of hotel rooms and rates.
NB: This is an article from RateGain
Their primary function is to purchase products (rooms, rates, and packages) in bulk from hotels and sell them to various clients (travel agents, OTAs, and tour operators), who then offer them to their customers (guests).
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Wholesalers, such as AOTGroup, CN Travel, FollowMe2Africa, Helloworld Travel, Abreu Online are just a few examples of the hundreds of wholesalers available for hotels to work with. Each wholesaler has a unique pricing structure and different selling methods. Some specialize in selling rooms only, while others offer packages, and some are limited to specific property types or markets.
Working with wholesalers can have both advantages and disadvantages for hotels. On the one hand, wholesalers can provide access to a wider range of potential guests and help to fill rooms during low occupancy periods. On the other hand, they may charge high commission rates and can potentially undermine a hotel’s brand and pricing strategy.
To manage relationships with wholesalers effectively, hotels should carefully consider which wholesalers to work with and negotiate favorable terms. It’s also important to monitor inventory closely and ensure that wholesalers are not undercutting direct hotel pricing.
Technology can also be useful in managing relationships with wholesalers. Many cloud platforms can help hotels connect with wholesalers and manage inventory and pricing in real-time. However, it’s essential to carefully evaluate the cost-benefit of using technology and ensure that any investment in technology will ultimately benefit the hotel’s bottom line.
Benefits of Partnering with Wholesale Travel Suppliers
- Diverse Guest PoolPartnering with wholesale travel suppliers can offer access to a more diverse and unique range of guests. A well-rounded hotel distribution strategy should consist of a mix of direct and third-party bookings, providing various potential revenue streams.
- Higher ReachWholesale travel suppliers can offer a powerful level of reach, attracting international travelers and promoting hotels to online travel agents and retail agents, maximizing the exposure of the property.
- Access to New MarketsWholesale travel suppliers specialize in providing access to markets that hotels may not be able to reach on their own, making it a cost-effective form of marketing for the property.
- Better Occupancy Forecasting & Inventory ManagementWhen hotels have a contract with a wholesaler, they can more accurately forecast occupancy patterns, ensuring a specific volume of business and payment in advance. This can assist hotels in better managing their inventory and pricing strategy.
While partnering with accommodation wholesalers can offer advantages, there are also several disadvantages that should be considered.
