Travel Wholesalers – New Ways To Distribute Travel Products, Optimize Processes

 

What Is Travel Wholesalers?

 

Travel wholesalers are B2B companies that purchase hotel room inventory in bulk at a lower cost. These products can include hotel rooms, airline tickets, rental cars, and activities like tours and excursions.

These are typically acquired through negotiated agreements or contracts with airlines, hotel wholesalers, car rental wholesalers, and sightseeing wholesalers, allowing wholesalers to secure lower prices than those available to individual travelers or traditional travel agencies.

Flight wholesalers then sell these tickets to travel agencies, tour operators, or other resellers at a markup, enabling them to earn a profit while still offering competitive prices to their customers. Wholesalers often specialize in specific markets, routes, or regions, leveraging their purchasing power and expertise to secure the best deals from airlines.

Also known as bed banks, wholesalers are a ‘middleman’ sitting between travel agents and travel suppliers (in this case, your hotel). They will never sell your rooms directly to travelers. Some big ones are Hotelbeds, WebBeds, or HotelsPro. They’re usually the main source of inventory for agencies since they typically offer decent rates, coverage (including vacation rentals), and connectivity. They also provide static hotel content, which is a nice complement to other perks.

Travel wholesalers are urged to manage all operations from a single technology platform, including contracting and inventory integration, managing online travel agents’ networks, content distribution via multiple points of sale, reservation and content management, accounting, and reporting.

Wholesalers sell travel packages (B2B or B2C) that address various customers' travel demands. They frequently employ global distribution channels to create bundles incorporating travel products from their partners. Packages may include flights, accommodations, and travel experiences (such as your excursions!).

Wholesalers either purchase ITO-developed programs or create their own packages and itineraries for travel agents and customers. Typically, these packages include accommodation, transportation, sightseeing, and attractions.

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

Working with several travel wholesalers from various geographical regions provided us with vast field knowledge, allowing us to develop a strong software solution ideal for travel consolidators and distributors of all sizes.

At the wholesaler stage in the distribution chain, the tour operator is providing a business-to-business (B2B) service by selling the product to a travel agent who then sells it to the consumer (a B2C service).

Wholesalers provide packages of travel products for retailers to sell, while in some situations they may sell directly to consumers. These packages or itineraries may include excursions, activities, accommodations, transportation, and travel insurance.

Wholesalers can include:

• Destination Management Organizations (DMOs) or inbound tour operators, such as government tourism boards or tourism authorities
• Global Distribution Systems (GDSs) are used by retailers such as OTAs to easily see an inventory of availability from tourism operators.

 

Travelopro’s Travel Wholesalers Software Solutions

 

As a travel service provider, are you looking forward to building new distribution channels to maximize your business profits? Travelopro has an extensive inventory of API and XML integration, helping travel wholesalers to access online content easily. Whether it's a B2B travel portal or a B2C booking engine, you can easily set up different travel technologies and payment methods in the travel portal.

Travelopro is a next-generation travel booking software platform designed for travel businesses and tour operators. It provides a B2C, B2B, and back-office system with flight, hotel, transfer, car rental, and vacation package modules.

Wholesalers play a key role in online distribution strategies, sitting between travel agents and travel suppliers. They source and package products and negotiate rates. The Travelopro cloud platform for hotels automates room inventory and rate updates from wholesalers to your property management system (PMS). Keeping everything in sync and eliminating manual entry.

Travel wholesalers have the best partner when working with our system. We offer a flexible, robust, and fast solution that allows wholesalers to set up an unlimited number of B2B2B and B2B2C systems, as well as multiple payment methods (credit limit, cash, credit and debit cards, and loyalty points) for each of their B2B2B or B2B2C clients.

Our online reservation system enables users to sell hotels, tours, transfers, flights, villas, insurance, and car rentals, as well as dynamic packages with specific markup definitions for various parameters, through any online, offline, or both channels, or via many branch offices.

Our cloud-based B2B platform is simple to use, dependable, secure, and thoughtfully built to condense all of the features you require to make life easier. Travelopro assists various B2B wholesale travel companies in streamlining, diversifying sales channels, and running their complete business from the cloud.

We provide top-tier product inventory at competitive pricing. Our cutting-edge solutions allow travel wholesalers to manage every element with unparalleled precision and efficiency.

Travel wholesalers with directly contracted inventory of hotels, activities, sightseeing, and ground transportation can put all of their products into Travelopro Inventory systems or simply integrate their existing CRSs with our platform. They can also incorporate third-party feeds from GDSs or other B2B providers into the platform, distributing aggregated inventory to OTAs and resellers via a uniform RESTful API.

Our Custom Software Development Services provide tailored software solutions to solve your specific business difficulties and objectives. From initial consulting and design to development, deployment, and ongoing maintenance, we build scalable, secure, and user-friendly apps that boost operational efficiency, promote innovation, and give you a competitive advantage.

Whether you require web, mobile, desktop, or corporate apps, our professional developers collaborate closely with you to bring your vision to reality.

Our travel reservation system is trusted by top tour operators, OTAs, and B2B wholesalers to power modern travel operations on a large scale. Built on a single, unified platform, it combines performance, automation, and connectivity to provide your company with the speed, control, and flexibility it needs to sell and operate more efficiently across all channels.

Travelopro connects you to hundreds of live suppliers and integrates your whole ecosystem, allowing you to unleash new product options, boost profitability, and provide seamless customer experiences.

Travelopro, built on two decades of innovation, continues to advance alongside the travel industry. Our unified codebase, modern cloud architecture, and AI-driven technologies provide speedier onboarding, seamless upgrades, and long-term scalability—all while maintaining the reliability that travel's greatest brands rely on.

 

How Do Travel Wholesalers Work?

 

Bulk Purchasing: Travel wholesalers negotiate with hotels and other service providers to purchase large volumes of room inventory at discounted rates, which can be either static (fixed) or dynamic (fluctuating based on demand). This bulk buying power allows them to secure competitive pricing and guaranteed availability.

Distribution: Once inventory is secured, wholesalers distribute it to a large B2B network that includes online travel agencies (OTAs), tour operators, and retail travel agents. These partners use integrated platforms or booking systems to access inventory and provide it to their clients.

Resale: The inventory is eventually sold to end users through these intermediaries at a higher retail price, with each party adding a markup to cover costs and profit. This model ensures a scalable distribution infrastructure while offering consumers affordable pricing.

 

Travel Wholesaler Integration Workflow

 

At Travelopro, our travel wholesaler integration team and framework experts offer significant assistance with API integration and live certification. They enable you to use ready codes and libraries to complete the integration sooner than expected. You can expect full-scale OTA or mobile applications to drive tremendous growth in the travel booking vertical.

 

Sandbox Access

 

Post API contract signoff, agency code is created. Same time, sandbox and test credentials are sent to client’s developers.

 

Web Services Integration

 

Developers get the integration kit and they can start integrating Travelopro’s travel APIs on their platform in a seamless way.

 

Test Cases Evaluation

 

Post flight APIs web services integration, test cases are sent to client’s developers to validate the logic of application or mobile app.

 

Live Credentials

 

On approval of all test cases, followed by few airline bookings in test environment, live credentials are granted to set the application live.

 

Function Or Services Of Wholesaler:

 

A wholesaler acts as the connection between the production and the retailer. He performs several functions for the producer and retailer. Following are the major functions of the wholesaler:

 

Advance Payment: Typically, a wholesaler makes advance payment to the producer for the product. As a result, the producer receives net cash and avoids financial difficulties.

Purchase Large Quantity: A wholesaler buys goods in bulk from producers and sells them in small quantities to retailers. It benefits the producer when his entire output is sold into a few hands.

Quick Return: Payment is made to the producer before the product is placed in the hands of the consumer.

Market Information: A wholesaler has direct touch with both the production and the retailer. The wholesaler understands the public's needs and preferences. He advises the producer on what he should produce.

Saving in Expenditure: In the absence of a wholesaler, if the producer sells the goods directly to retailers, he must open the sale department. He will also appoint the employees. However, because of the wholesaler, he saves on this expense.

Concentration on Production: In the presence of a wholesaler, he performs the distribution function while the producer concentrates solely on production.

Storage Facility: The wholesaler purchases the goods on a huge scale from the producer and stores them in his store. As a result, producers have no storage problems.

 

Characteristics of Wholesale Travel Agencies

 

The main characteristics of a wholesale travel agency are as under:

• Creates a link between the travel vendors and retail travel agencies.
• Conducts market research, especially ‘tour testing.’
• Negotiates with destination travel operators to purchase in bulk.
• Assembles tour ingredients from airlines, hotels, ground transportation, and other tourism suppliers;
• Conducts exclusive advertisements for increasing the sales volume.
• Typically offers the broadest range of products/services and serves the most market segments.

 

Components Of Travel Wholesalers:

 

Wholesale Of Air Tickets: The leading business of many travel wholesalers is the wholesale of air tickets. Their specific operating methods are based on their own judgment of the market and years of experience in travel sales, directly cutting seats from airlines and sending out tours regularly. Some tourist destinations cut 30 or 50 seats a day, get a very competitive discount, then add their own profit, and then wholesale it to travel retailers. It can be seen that they have played the role of wholesalers for airlines and successfully realized the transition from the combined wholesale of air tickets and ground transportation products to the wholesale of single air tickets. “As long as the market research is detailed and the demand trends are grasped, the air tickets can be sold, and profits are generated. This is faster than wholesale travel routes, has less risk, and will not cause any complaints.

Transportation Arrangements: Travel wholesalers collaborate with airlines, bus companies, and train services to acquire transportation for their packages. These could include round-trip flights, airport transfers, or intercity transit within a destination.

Accommodation: Wholesalers negotiate lower rates with hotels and resorts, frequently buying rooms in quantity during peak seasons. Accommodation options range from inexpensive hotels to luxury resorts, depending on the package and target market.

Tours and Activities: A crucial component of a wholesaler's package includes pre-arranged activities and excursions, such as city tours, sightseeing trips, and unique experiences like adventure sports, cultural tours, or safaris. These are planned in collaboration with local tour operators.

Travel Insurance: Some travel wholesalers may include travel insurance as part of the package to protect against potential risks, including trip cancellations, medical emergencies, or lost luggage.

Meal Plans: Many travel wholesalers provide meal alternatives such as breakfast-only, half-board, or full-board, based on the client's preferences and package design.

Guided Services: Travel wholesalers frequently include services such as local guides and interpreters, particularly in international places where visitors may require language assistance or cultural insights.

Transfers and Local Transport: Local transportation (such as shuttle services or car rentals) is frequently included in packages to ensure easy access to attractions and accommodations.

Ticket Wholesale: Wholesale ticketing is a type of travel wholesale company in which businesses book tickets throughout daily and peak tourist seasons through an interpersonal contact with the railway department and then sell them to other travel companies. This is a well-known "ticket dealer" within the industry. It is not a traditional wholesale form of tourism products, although it does qualify as such.

 

In What Way Is A Travel Wholesale Travel Agent Different From A Retail Travel Agent?

 

A wholesale travel agency (wholesaler) and a retail travel agent (retailer) serve different operations in the travel distribution chain. Key differences:

 

Business Role And Customer-Facing Activity

 

Wholesaler: Travel products (air, hotel, transfers, tours, and activities) are packaged into inventory and sold in bulk, often to retailers or tour operators. Rarely sells directly to end users.

Retailer: Sells travel products and packages directly to consumers. Serves as the customer-facing agent, handling bookings, service, and after-sales assistance.

 

Inventory And Pricing

 

Wholesaler: Purchases huge allocations (blocks of airline seats, hotel rooms, and coach seats) at negotiated net rates or allotments, generally with predetermined commissions or margins. Controls inventory availability and determine wholesale pricing.

Retailer: Receives access to wholesaler inventories and publishes markup prices for customers. The retail margin is the difference between wholesale/net rates and consumer prices, including commissions.

 

Product Creation And Packaging

 

Wholesaler: Creates and packages itineraries, dynamic or static tour products, and occasionally provides destination management services (DMC). Responsible for creating product content, contracting vendors, and assembling components into sellable products.

Retailer: Chooses among wholesalers' products, customizes or bundles for clients, and may include local services, upgrades, or bespoke elements.

 

Distribution And Sales Channels

 

Wholesaler: Distributes through trade-only channels (GDS, XML/API feeds to agencies, and trade portals), as well as retail travel agents, OTAs, and tour operators. The primary focus is B2B.

Retailer: Uses B2C channels (storefronts, call centers, websites, and OTAs) and direct marketing to travelers.

 

Risk, Liability, And Customer Service

 

Wholesaler: Bears supplier contracting risk (allotments, minimums) and may take on operational responsibility for the packaged product (for example, tour operation, local guides). There is limited direct consumer service unless you are also a tour operator.

Retailer: End-customer liability includes correct booking, cancellations, modifications, and immediate customer support; frequently handles refunds and claims between client and wholesaler/supplier.

 

Margins And Economics

 

Wholesaler: Operates with lower per-unit margins but bigger volumes, generating revenue from bulk allotments and, on occasion, retailer markups. Profitability is driven by economies of scale and suppliers' bargaining strength.

Retailer: Earns higher per-sale margins/commissions, as well as service fees; profitability is determined by conversion, customer acquisition costs, and after-sales support.

 

Advantages Of Travel Wholesalers:

 

Travel wholesalers offer key advantages such as bulk purchasing power, streamlined distribution, and access to diverse travel products at competitive prices. Here’s a detailed breakdown of the main benefits of travel wholesalers in the tourism industry:

 

Bulk Purchasing Power

 

• Wholesalers buy large volumes of travel products (hotel rooms, flights, tours) at discounted rates.
• This enables them to offer competitive prices to travel agents and tour operators.

 

Streamlined Distribution

 

• They act as intermediaries between suppliers (hotels, airlines) and retailers (travel agents).
• This simplifies the supply chain and helps suppliers reach broader markets without managing individual sales.

 

Product Bundling and Packaging

 

• Wholesalers often create travel packages by combining flights, accommodation, and activities.
• These packages are attractive to consumers and easier for agents to sell.

 

Market Reach and Specialization

 

• Many wholesalers specialize in specific regions or types of travel (luxury, adventure, budget).
• This allows for targeted marketing and better customer alignment.

 

Risk Reduction for Suppliers

 

• Suppliers benefit from guaranteed bulk sales, reducing the risk of unsold inventory.
• Wholesalers often pre-purchase inventory, offering financial stability to suppliers.

 

Technology and Connectivity

 

• Modern wholesalers use platforms that integrate with hotel and airline systems.
• This improves booking efficiency and real-time availability for agents.

 

Support for Smaller Retailers

 

• Travel agents and small tour operators gain access to products they couldn’t negotiate directly.
• Wholesalers provide marketing materials, training, and booking tools.

 

Global Distribution Networks

 

• Wholesalers often have international partnerships, helping local suppliers tap into global markets.
• This expands tourism reach and boosts destination visibility

 

Benefits Of Travel Wholesalers

 

Travel wholesalers play a crucial role in the tourism industry by connecting suppliers with retailers and offering bundled travel services. Here are the key benefits they provide:

 

1. Cost Efficiency

 

• Wholesalers purchase travel products in bulk, securing lower rates from suppliers.
• These savings are passed on to travel agents and consumers, making travel more affordable.

 

2. Convenient Packaging

 

• They bundle services like flights, hotels, and tours into ready-made packages.
• This simplifies planning for travelers and selling for agents.

 

3. Wide Product Access

 

• Travel agents gain access to a broad range of destinations, accommodations, and experiences.
• Wholesalers often have exclusive deals not available elsewhere.

 

4. Time Savings

 

• Agents and travelers save time by using pre-arranged packages and centralized booking systems.
• Wholesalers handle logistics, reducing the need for individual negotiations.

 

5. Market Reach for Suppliers

 

• Hotels, airlines, and tour operators reach global audiences through wholesalers.
• This boosts visibility and sales without direct marketing efforts.

 

6. Risk Reduction

 

• Suppliers benefit from guaranteed bookings and reduced inventory risk.
• Wholesalers often pre-purchase blocks of rooms or seats.

 

7. Expertise and Support

 

• Wholesalers offer destination knowledge, training, and marketing tools to agents.
• This enhances customer service and sales effectiveness.

 

8. Technology Integration

 

• Many wholesalers use advanced booking platforms that streamline operations.
• Real-time availability and automated confirmations improve efficiency.

 

List Of Travel Wholesalers

 

A list of common travel wholesalers or bed banks you might see includes:

• Hotelbeds
• Bedswithease
• Bonotel
• GRNconnect
• Abreu Online
• HPro Travel (HotelsPro)
• Jumbo Tours
• Tourism Exchange
• Travco
• WebBeds

 

Function Of Travel Wholesalers

 

1. Organize tourism products. On the basis of market surveys and forecasts, we organize package tour products intelligently.

2. Sales and promotion functions. Wholesalers can successfully reach out to many small consumers with tourism products through the commercial operations of their sales personnel, consequently increasing sales.

3. Take responsibility for quality. We are responsible for the quality of the package tour products we offer, as well as protecting consumers' rights and interests.

4. Risk-taking function. Travel wholesalers assume numerous risks associated with travel products during the distribution process because they own the products themselves.

5. Provide information function. Travel wholesalers can provide essential market information to their tour operators, such as rival activities, the introduction of new items, significant pricing adjustments, and so on.

6. Management consulting service function. Travel wholesalers frequently assist tour organizations in training sales staff, organizing stores, and establishing accounting systems, all of which improve tour groups' operational efficiency.