Hotels increasingly rely on Expedia and Priceline Group to distribute their inventory globally, with some hotels relying on them to fill as many as half of their rooms on any given night.
An alternative B2B distribution path may be gaining momentum led by Hotelbeds, which distributes rooms at wholesale rates to about 35,000 retail travel agencies, small OTAs including Getaroom and Travel Republic, tour package operators like TUI Deutschland, and airlines like Easyjet upselling passengers with accommodation offers.
Hotelbeds Group is now the market leader in the B2B hotel sector, holding around 15% of the global market and expanding, followed by Australia-based Webjet, MTS Globe, World2Meet and others, leaving a wide field of opportunity for further consolidation.
This article discusses the future for such booking platforms, commission rates set and charged by the giant OTAs, and confusion for hoteliers around where and how their stock is listed, and whether it is competing with its own pricing several times over. If the rates are roughly comparable, why would hoteliers use the business-to-business channel?