Articles tagged “wholesale”

Hotel chains today often struggle with fragmented distribution channels and complex wholesale rate management. Maintaining an offline distribution network can be costly and time-consuming and often requires substantial discounts and…

Hotels aren't doing enough to keep their wholesale rates off of smaller retail travel sites. That is damaging to Expedia's effort to gather the best prices online.

It's an occasion to pause and appreciate the accomplishment of Joan Vilà, who created Hotelbeds and led it to become the world's largest bedbank. But looking ahead, Hotelbeds must rev up its digital metabolism.

Hoteliers sent about $50 billion of rooms a year through wholesalers in normal times. Expedia Group and WebBeds want to take larger shares of that market. But private equity-backed companies like Hotelbeds and Fastpayhotels see an opportunity, too.

If the Expedia-Marriott partnership works out as promised, then there will be fewer Marriott rates on metasearch sites that are deeply discounted compared to Marriott's own websites. And bedbanks and tour operators will have to sign up with Expedia — not Marriott — to get their hands on Marriott's wholesale rates.

Mondee's acquisition of fast-growing CTS (Cosmopolitan Travel Service) makes the group North America's largest airfare wholesaler by market size. Notably, Mondee could afford the deal thanks to fresh backing by TCW Group, a giant asset management firm. Lots of institutional money is seeking opportunities in travel this year.

The collapse last week of Amoma suggests that an industrywide crackdown on online travel agencies that violate hotel contracts is getting serious. For example, many hoteliers have wanted Hotelbeds to crack down on bad behavior by some agencies. The distributor of wholesale rates has responded by taking action.

While clearly not a game-changer in the same way Tourico Holidays or GTA was, the deal does expand Hotelbeds’ ancillary portfolio, giving it greater reach in what is a growing market.

After two blockbuster deals, change was to be expected. If travel agents end up getting more choice and better technology, they won't have much to get upset about.

Business-to-business platforms are largely invisible to the traveling public but they have a big role to play behind the scenes. Hotelbeds Group sees an opportunity to consolidate within the sector.