Hotel Wholesalers - Connect your hotel with Travelopro

 

Have You Ever Wondered What A Hotel Wholesaler Is? Let Us Explain It To You?

 

A hotel wholesaler, also known as a hotel broker or distributor, is a company that purchases rooms in bulk from hotels at discounted rates and then sells them to travel agencies or directly to consumers. These wholesalers serve as intermediaries between hotels and customers, offering a vital component in the distribution chain.

Hotel wholesalers bulk source hotel beds and hotel amenities and sell them to agents or OTAs. The rooms are then sold to passengers all over the world via a booking engine and other distribution channels.

Some wholesalers specialize in particular markets or certain hotel types, whereas others purchase all types of hotels and distribute them worldwide. Hotels increase revenues by working with wholesalers, and OTAs acquire hotel supplies in bulk at a low cost. However, wholesalers do not sell or distribute hotel products directly to guests.

Prior to the internet, a hotel would sell rooms to a wholesaler, who would sell them to a travel agency, who would then sell them to the final customer. All transactions will focus on a markup, allowing all parties involved to profit from the sale.

Since the internet, wholesalers will frequently offer their rooms to any type of OTA (large, small, and unknown) as well as other wholesalers. This creates confusion for hotels and reduces business margins. High profit margins for wholesalers, travel agents, and OTAs result in a profit loss for the hotel!

 

The Role Of Hotel Wholesalers In The Hospitality Industry

 

Hotel wholesalers play an important role in the hospitality business by allowing hotels to access a larger audience. By leveraging their comprehensive relationships and marketing capabilities, they may promote hotels to potential customers who would not have been reached through direct marketing techniques.

Hotel wholesalers are able to offer you a better rate and a wider variety of accommodation options, from niche bed & breakfasts to high-end hotels that spare no expense. It’s a way to cut through the crowd when it comes to finding the best deals for your client. Better deals = greater likelihood of you retaining a client. And in this day and age, making a sale is key, but being able to stand out from the rest is what can create a solid relationship between you and your client.

By partnering with a hotel wholesaler, businesses can simplify the process of booking hotel rooms for their customers and can offer more competitive prices and better options. The hotel wholesaler takes care of all the logistics, such as room allocation, payment processing, and customer support, so that the business can focus on selling and marketing travel packages to their customers.

After purchasing these products, most wholesalers (such as bed banks or hotel consolidators) resell them to other businesses (such as travel agencies) at a higher price. However, other business models are equally effective. Tour operators, or DMCs, for example, purchase travel products in bulk, bundle them into trip packages, and distribute them to merchants (or, in some instances, directly to consumers).

Furthermore, wholesalers often offer technology solutions and support services to assist travel sellers in managing their inventory and bookings. Wholesalers play a significant part in the travel industry ecosystem by serving as intermediaries between travel suppliers and sellers, allowing travel products and services to be distributed more effectively.

Hotel inventory providers benefit travel agents by giving them access to a diverse range of hotel accommodations, competitive rates, and real-time availability. This allows travel agents to offer their clients a wide selection of options and secure bookings quickly and efficiently.

Furthermore, hotel wholesalers help manage demand variations by obtaining room blocks during off-peak seasons or when demand is low. This guarantees that hotels maintain steady occupancy rates throughout the year, resulting in reliable revenue streams.

Wholesalers also offer value-added services such as customer service and help with booking processes. This enhances customer satisfaction and can lead to repeat business for both the wholesaler and hotel.

Each wholesaler will have a unique price for operators to engage in their programs, and various wholesalers are frequently offered in different ways. For example, some may solely sell rooms, whilst others may offer packages. Some are even limited to particular property types or markets.

To effectively manage wholesaler partnerships, hotels should carefully choose which wholesalers to engage with, negotiate favorable terms, and regularly monitor inventory and pricing. The use of technology, such as channel managers, can also aid in wholesale agreement management. Overall, hotels should weigh the risks and benefits of collaborating with wholesalers before making informed decisions to increase occupancy and revenue.

 

How Do Hotel Wholesalers Work?

 

Wholesalers acquire room inventory at a fixed or negotiated cost, ensuring hotels maintain continuous occupancy even during low-demand periods. They communicate with hotels directly or through travel providers, frequently connecting with Property Management Systems (PMS) or utilizing third-party connectivity solutions (or APIs) to ensure that bookings and availability are accurate in your reservation system.

For hotels, this implies increased exposure with less hands-on booking administration, as well as connecting your property to networks that sell to a diverse spectrum of customers globally. Wholesalers can be especially valuable for filling room blocks that would otherwise go unbooked during slow periods, particularly because you have sold them certain amounts of your inventory and thereby reduced the size of your hotel, providing you with fewer rooms to sell on any given night.

Many wholesalers go beyond just selling hotel rooms. They may provide auxiliary travel inventory, ranging from event tickets and local activities to vehicle rentals and transfers, allowing their partners to design comprehensive packages that appeal to various travel segments.

This versatility positions wholesalers as a one-of-a-kind middleman, boosting hotels' market reach while assisting travel providers in offering a wide range of services.

 

Is It Right for Your Hotel?

 

Wholesalers are best suited for:

Large hotel groups or independent properties with high inventory: Wholesalers are beneficial for hotels with a large number of rooms to fill on a regular basis since they can quickly reduce bulk inventory while maintaining high occupancy levels.

Hotels seeking international exposure without direct marketing: Partnering with wholesalers allows hotels to get access to global distribution channels and international travelers without the need for enormous marketing campaigns or overseas sales teams.

Properties in major group tour or package holiday destinations: Hotels in areas frequented by tour groups or included in vacation packages might benefit from steady demand and block bookings made possible by wholesalers.

Smaller boutique hotels that focus on direct bookings or premium clients may benefit more from ensuring pricing control and guest experience through direct booking methods or by joining exclusive, high-end travel networks dedicated to their brand.

 

Sell Globally With Travelopro

 

Travelopro is a renowned hotel wholesaler that has made a significant impact on the global hotel industry. The company has grown to become a leading player in the field. Travelopro operates as both a travel agency and a travel portal, a DMC travel portal, offering a comprehensive range of services to travel agencies worldwide.

With Travelopro’s platform for wholesale distribution, wholesale distributors can increase efficiency and responsiveness with a single, integrated platform they can use to run the entire business, from e-commerce and order management to inventory management and financials. Travelopro gives companies real-time visibility across the entire business, automates operations, optimizes supply chain management, and facilitates omnichannel commerce.

We provide access to a wide range of travel products and services, offer technological solutions to simplify booking processes, and support sustainable tourism practices. As the global hotel industry continues to grow, Travel Portal will remain central to its operation and success.

As a hotel wholesaler, we offer this system or module, which includes an exceptional inventory of 503,000+ hotels in over 157,328 destinations worldwide and 5+ million rooms in 204+ countries and territories across six continents at the lowest costs. Thousands of travel agents are presently booking from our inventory.

By working with travel managers, wholesalers, and tech providers, hotels can streamline their booking processes, tap into new revenue streams, and build stronger business relationships.

By selecting the appropriate suppliers and forming powerful relationships, hoteliers may improve their operations, save money, and remain ahead of the competition. Whether you're a seasoned hotelier or just getting started in the business, putting time and effort into supplier management will undoubtedly pay dividends in the long term.

At Travelopro, we take pride in our efficient wholesale services. With our wide range of products and competitive pricing, we cater to the bulk packaging needs of hotels across the world. Our dedicated team is committed to providing personalized assistance, ensuring a seamless wholesale experience from order placement to on-time delivery.

 

Benefits Of Wholesalers For Businesses

 

Businesses involved in the supply chain can reap the many advantages wholesalers provide. The benefits include:

 

Expands Reach

 

Manufacturers will spend less investment on expanding their market. By utilizing wholesalers, products can reach consumers without employing extra energy that is more costly. Wholesalers are responsible for distributing products that are difficult to get to retailers.

 

Streamlines Operations

 

Wholesaling can simplify business operations for distributors, wholesalers, retailers, and consumers. Manufacturers can work with fewer wholesalers to fill large orders. As for retailers, they can get supplies from a variety of different wholesalers as opposed to just one manufacturer.

 

Lowers Business Cost

 

Simplifying business operations can reduce the costs incurred by manufacturers and wholesalers. Retailers will find products cheaper if they buy from wholesalers, as there is no need to purchase large quantities of multiple products.

 

Storage Capabilities

 

Wholesalers usually own large warehouses to accommodate products and inventory items. The ability to store items can free manufacturers and retailers from the cost of maintaining large stocks of products.

 

Supply Chain Stability and Risk Mitigation

 

Through inventory maintenance, wholesalers help maintain a stable supply of products. Wholesalers also reduce the risk of shortages for businesses involved in the supply chain.

 

Different Names of Hotel Wholesalers:

 

• Hotel Suppliers
• Hotel Merchants
• Bed banks
• Consolidators
• Hotel Brokers
• Hotel Aggregators
• Hotel Vendors
• Demand Partners
• Hotel Providers
• Hotel banks
• Hotel Distributors

 

1. Hotel Suppliers

 

Wholesalers are also known as hotel suppliers in North America. Hotel suppliers play a significant part in sourcing and acquiring hotel products in bulk and selling them to hotel buyers such as OTAs, tour operators, and DMCs.

 

2. Hotel Merchants

 

Before the internet, wholesalers were referred to as hotel merchants. Hotel merchants would offer hotel inventory offline to their networks, which was recognized as a trustworthy selling channel for accommodation providers.

 

3. Bed banks

 

Bed banks are an online version of traditional wholesalers that have been part of hotel distribution for the past 20 years. They are B2B platforms that contract supply directly from hotels and accommodation providers in bulk. In the European and United Kingdom markets, wholesalers are commonly referred to as bed banks.

 

4. Consolidators

 

Hotel consolidators buy hotel rooms or accommodation in bulk and resell them to customers at a discount. They may not have direct contracts like bed banks, but they function in the same way.

 

5. Hotel Brokers

 

Wholesalers are commonly referred to as hotel brokers in the United States and Mexico. The business operations of hotel brokers are the same as consolidators, and thus, sometimes hotel brokers are also called consolidators.

 

6. Hotel Aggregators

 

Wholesalers are also known as hotel aggregators in the Asia-Pacific area, where they became popular in the mid-2000s. Their business strategy differs slightly from that of wholesalers; however, they are middlemen in the hospitality industry who rent hotel rooms on a lease and manage the hotel's marketing and operations.

 

7. Hotel Vendors

 

Wholesalers, often known as hotel vendors, sell hotel products to travel buyers, including OTAs, DMCs, and TMCs. It is worth noting that hotel vendors frequently get confused with hotel amenity vendors; nonetheless, these vendors have very different businesses.

 

8. Demand Partners

 

Wholesalers in the travel business are sometimes known as demand partners in the United States. They collaborate with accommodation providers and operate in a manner similar to traditional hospitality wholesalers.

 

9. Hotel Providers

 

Hotel Providers is another well-known wholesaler name in the US B2B business. They handle hotel products such as hotel rooms, availability, room rates, and amenities and have direct contracts with hotels.

 

10. Hotel banks

 

Wholesalers are also known as hotel banks in different parts of the United States. They operate similarly to bed banks, purchasing hotel rooms in bulk and selling them to OTAs, tour operators, and so on at a discounted rate.

 

11. Hotel Distributors

 

In some parts of the United States and Europe, wholesalers are also known as hotel distributors. These intermediaries work as wholesalers, negotiating special reduced rates with hotel providers and selling them to OTAs, DMCs, tour operators, and so on.

 

Who Are The Largest Hotel Wholesalers?

 

Travelopro has integrated into its booking system all the major wholesalers in the world, so you don’t have to search for the largest wholesalers.

There are several large hotel wholesalers operating globally. The size of the company and their market position can vary depending on the region and the type of travel products they offer. Some of the largest hotel wholesalers include:

 

 Bedsonline: A subsidiary of Hotelbeds Group, Bedsonline is a leading hotel wholesaler that specializes in offering travel products to travel agencies and tour operators in Europe, the Middle East, and Africa.

GTA (Global Travel Industry): A subsidiary of the Kuoni Group, GTA is one of the largest hotel wholesalers in the world and offers a range of travel products and services to travel agencies, tour operators, and online travel companies.

JacTravel: A leading hotel wholesaler that operates globally and offers a wide range of hotels, transfers, tours, and other travel products to travel agencies, tour operators, and online travel companies.

Hotelbeds Group: A leading hotel wholesaler that operates globally and offers a wide range of hotels and travel products to travel agencies and tour operators.

Tourico Holidays: A major player in the travel industry that offers a wide range of hotels, flights, rental cars, and other travel products to travel agencies, tour operators, and corporate clients.

 

Why Hotel Wholesalers Are Essential?

 

Hotel wholesalers are essential for being able to reach customers through these unique channels.

 

A Real-time Marketplace

 

As demand channels get more complex, hoteliers must also evolve. Real-time marketplaces are successful in many areas, but many parts of the travel industry have been too slow to catch up. For hoteliers to genuinely benefit from B2B distribution, they must abandon the set pricing and upfront bulk purchase of the past.

Hoteliers must get their inventory in front of the appropriate demand channels, at the right price, and at the right time. They require a real-time marketplace that offers real-time pricing and availability, providing hotels with far greater visibility and control over their inventory.

 

Maintaining Control

 

When hotels connect with several suppliers, who are sometimes daisy-chained together, determining where merchandise came from can be difficult. It can be nearly impossible to maintain pricing control when rogue actors ignore agreed channel rules and use several wholesalers to undercut the market.

When prices are not rising in tandem due to various relationships, testing price elasticity and implementing data-driven modifications is extremely difficult, and AI-driven demand channels will automatically switch to the cheapest rate available.

 

Conclusion:

 

The future of hotel wholesalers is unpredictable. However, there are still prospects for them to succeed in the next years. By implementing the appropriate techniques, hotel wholesalers can adapt to the changing landscape and continue to play a significant role in the hospitality business.

Partnering with a reputable hotel supplier, such as Travelopro, provides numerous benefits, ranging from streamlined operations and cost savings to improved brand consistency and client satisfaction. By implementing this type of collaboration, hotels can improve their offers and differentiate themselves in a competitive market.