B2B Distribution Manager for Hotels & Resorts – An Ideal Distribution Channel Management System For Your Hotel

What is B2B Hotel Distribution?

B2B, short for Business-to-Business, is a model wherein a company or business deals directly with another company.

Business-to-Business (B2B) Hotel Distribution refers to the process of selling hotel rooms directly to other businesses, intermediaries, wholesalers, and travel agents who then sell these rooms to end clients. This distribution model allows hotels to reach a wide range of potential clients by leveraging the networks and customer bases of B2B partners.

In B2B hotel distribution, hotels establish partnerships with various distribution channels such as online travel agents (OTAs), global distribution systems (GDS), wholesalers, tour operators, and travel agencies.

These collaborations allow hotels to sell their inventory, room prices, and availability to a larger audience. In turn, B2B partners have access to a diverse range of hotel rooms that they can offer to their clients.

The B2B distribution process involves managing contracts with different distribution partners, ensuring that the hotel's inventory is accurately represented across all channels, and managing the transactions between the hotel and its B2B partners. Hotels also work with revenue management and sales teams to develop pricing strategies and maximize their distribution efforts.

An effective B2B hotel distribution strategy is crucial for hotels to maximize their visibility, reach prospective clients, and drive bookings. By utilizing B2B partnerships, hotels can tap into emerging markets, expand their customer base, and boost their bookings and occupancy rates.

Why are online distribution channels important for hotels?

Hotel distribution channels are the foundation of a hotel’s distribution, sales, and revenue strategy. Online hotel reservation system are becoming increasingly important for both travelers and hotels. These platforms enable travelers to search for, compare, and book hotels based on their preferences, while also giving hotels a chance to reach a larger audience and increase bookings.

Trawex's smart travel technology solution for hotels to effectively manage their B2B distribution network at an affordable price.

Utilize Trawex's hotel distribution solutions, which are designed to assist hoteliers in distributing and selling through additional distribution channels, optimizing profit and market reach.

With the help of hotel distribution solutions, hotels can sell rooms online through a variety of online distribution channels, including Online Travel Agencies (OTAs), and update hotel room availability and rates in real-time on all connected channels to increase direct bookings and maximize revenue.

Trawex's hotel distribution solutions enable travel agents and hoteliers to sell rooms to a global audience by distributing hotel inventory across several OTAs, retail travel agencies, global distribution systems, meta-search engines, leading hotel management systems, and booking channels.

Here are some of the major players in B2B Hotel Distribution that can assist independent hotels in increasing sales and revenue:

Travel Management Company (TMC)

A Travel Management Company, or TMC, acts as a travel trade that manages corporate bookings. A travel agent will frequently go directly to a Global Distribution System, a Bed Bank, or a Wholesaler to obtain rooms and flights for the company whose travel arrangements they are making. A TMC can sometimes book directly with hotels individually.

BCD Travel, TravelPerk, SAP Concur, TravelBank, and American Express GBT are a few examples of prominent TMCs.

Global Distribution System (GDS)

A GDS is typically where a TMC looks to book a room or a flight. This is because a GDS is an online network where the availability and cost of different services in the tourism and hospitality industry are distributed. For this reason, a GDS acts like an informed intermediary that connects hotel chains and airlines with travel agents, corporates, and others.

Furthermore, the GDS provides one confirmation number for all bookings, making it easier for agents to seamlessly book hotels and flights from one platform.

A GDS system plays an essential role in the distribution of a hotel's inventory. Important information like amenities, availability, and prices is distributed to a database of booking platforms, travel agencies, websites, etc. As a result, a hotel could expand its reach and serve a larger clientele.

Bed Bank

A Bed Bank is essential in business-to-business distribution. A bed bank, as the name implies, is a wholesaler that buys rooms in bulk from various hotels at a discount. It then sells these rooms to travel aggregators, online travel agents, and travel management companies. It provides hotels with access to opaque distribution channels, allowing them to grow their business.

Wholesaler

A wholesaler, like a bed bank, works directly with hotels to sell their rooms on various B2B networks such as GDS. What’s different with a wholesaler is that it frequently signs a contract to sell rooms at a fixed price during a certain time frame. Wholesalers usually make a profit by increasing the markup price when reselling.

Why is Contracting GDS, Wholesalers, or Bed Banks Beneficial for Independent Hotels? 

Using a Global Distribution System (GDS), wholesaler, or bed bank can provide various advantages to a hotel:

• Increased Visibility: GDS platforms, wholesalers, and bed banks have a wide network of travel agents and intermediaries who use their systems to search and book hotel rooms. By contracting with these platforms, hotels can showcase their inventory to a large audience, increasing their visibility and exposure to potential customers.

• Access to Travel Agents: GDS platforms are specifically designed to connect hotels with travel agents. By partnering with a GDS, hotels have access to a huge network of travel agents that actively search for and book accommodations on their client's behalf. This collaboration enables hotels to broaden their reach and obtain bookings from travel agents that prefer to use GDS systems.

• Market Penetration: Wholesalers and bed banks usually specialize in specific markets or customer segments. By contracting with them, hotels can tap into these niche markets and reach customers they might not otherwise have access to. This market penetration can aid in increasing bookings and occupancy rates, especially in segments that are difficult to reach via other channels.

• Dynamic Pricing and Inventory Management: Contracting with a GDS, wholesaler, or bed bank enables hotels to implement dynamic pricing strategies. These technologies offer real-time pricing and inventory updates, allowing hotels to adjust prices based on demand fluctuations. This flexibility guarantees that hotels can maximize revenue and occupancy by offering competitive prices at the right time.

• Dedicated Support and Training: GDS platforms, wholesalers, and bed banks often provide dedicated support and training to their hotel partners. This can include assistance with system integration, training on how to optimize distribution, and ongoing technical support. Having access to this support guarantees that hotels can effectively utilize the platform's features and resources for their benefit.

• Streamlined Operations: Contracting with a GDS, wholesaler, or bed bank simplifies operations by automating various processes. These tools provide seamless connectivity between hotels and their distribution partners, facilitating the exchange of availability, rates, and bookings in real time. This automation eliminates the need for manual updates while also reducing the possibility of errors.

• Competitive Advantage: Working with a GDS, wholesaler, or bed bank provides hotels with a market edge. By using these platforms, hotels can differentiate themselves from competitors by offering their inventory through multiple channels and reaching a wider audience. This increased exposure and visibility can lead to more bookings and higher occupancy rates.

How Hotel Distribution Channel is essential for the Hotel Business?

B2B Distribution is essential for a hotel's growth for several reasons:

• Increased Reach: Partnering with B2B distributors allows hotels to tap into their extensive networks and customer bases, reaching a wider audience than they would be able to on their own. This expanded reach increases the hotel's exposure and visibility to potential customers.

• Access to New Markets: B2B distribution helps hotels enter new markets or segments that they can have difficulty reaching directly. B2B partners often have expertise in specific markets, such as corporate travel or group bookings, and can connect hotels with prospective clients in these segments.

• Increased Bookings and Occupancy: By diversifying distribution channels through B2B partners, hotels can increase their booking opportunities and occupancy rates. B2B partners bring in a steady stream of bookings from their customer base, leveraging their marketing and sales efforts to promote the hotel's inventory.

• Revenue Optimization: B2B distribution allows hotels to optimize their revenue by constantly managing rates and inventory across different channels. By partnering with B2B distributors who have access to real-time pricing and inventory data, hotels can adjust availability and pricing based on demand fluctuations, maximizing revenue potential.

• Streamlined Operations: B2B distribution assists in streamlining operations by automating processes and reducing manual work. Hotels can integrate their systems with B2B partners, allowing for seamless and efficient exchange of accessibility, rates, and bookings. This automation helps minimize errors, improve accuracy, and save time for hotel staff.

• Competitive Advantage: B2B distribution is a competitive advantage as it allows hotels to gain a broader presence in the market. By partnering with the right B2B distributors, hotels can differentiate themselves and stand out from competitors by providing their inventory through a wider range of distribution channels.

• Building Strong Connections: Collaborating with B2B partners allows hotels to establish and nurture relationships with key players in the industry. These connections could lead to long-term collaborations, referrals, and recommendations, expanding the hotel's growth potential to a greater extent.

• Enhanced Marketing and Branding: B2B distribution partners often have extensive marketing capabilities and resources. Hotels can profit from their marketing efforts by collaborating with them, which could include targeted advertising, promotional campaigns, and visibility on their websites or platforms. This increases brand recognition, attracts new clients, and improves the hotel's reputation.

• Increased Flexibility: B2B distribution allows hotels to manage their inventory and pricing more easily. They can allocate a portion of their rooms to B2B partners, ensuring that they maintain control over availability and pricing without being solely dependent on one distribution channel.

• Increased Guest Experience: B2B distribution can help to improve the guest experience. By reaching customers through various channels, hotels can meet the diverse preferences and booking procedures of potential guests. B2B partners frequently offer an efficient booking experience, ensuring that consumers can quickly access hotel rooms at their preferred point of purchase.

• Market Insights and Analytics: Partnering with B2B distributors can offer hotels valuable insights and analytics. B2B partners often provide data and reporting on bookings, customer behavior, market trends, and competitor analysis. This data assists hotels in making data-driven decisions, optimizing distribution strategies, and identifying areas for development and growth.

• International Distribution: For hotels that aspire to attract international guests, B2B distribution becomes even more crucial. Partnering with global B2B distributors, such as international OTAs or GDS, allows hotels to enter international markets, attract travelers from all over the world, and grow their client base globally.

What are the objectives of the B2B Distribution Manager for Hotels?

The objectives of hotel distribution are to:

• Increase online visibility: By connecting with multiple distribution channels, hotels can boost their online visibility and reach a wider audience.

• Improve distribution efficiency: Hotel connection and distribution technologies enable hotels to efficiently manage their inventory and rates across numerous channels, eliminating manual work and decreasing the risk of overbooking.

• Enhance revenue management: By leveraging real-time data on demand and market trends, hotels can adjust their prices and availability dynamically, optimizing their revenue management.

• Expand market reach: Through hotel connectivity and distribution, hotels can expand their market reach and attract new customers from various regions and segments.

• Build brand loyalty: Hotels can increase customer satisfaction and brand loyalty by providing a unified and easy booking experience across several channels.

• Improve operational efficiency: Hotel connectivity and distribution systems can automate several operational tasks, such as inventory updates, bookings, and payments, streamlining hotel operations, and reducing errors.

Features of B2B Distribution Manager for Hotels

• B2B Booking Engine: Allow Agent and corporate to check room availability and book online at the contracted rate, non-contracted rate, and promotional rate, and get instant confirmation.

• Account management: Manage, track sales production, and analyze your accounts’ performance for better business decisions.

• Dynamic Pricing: Besides contract rates, Trawex allows hotels to sell dynamic pricing to Agents & Corporate.

• Allotment Management: Hotel can set & control allotment for Agent and corporate, allotment by account, and allotment by market.

• Operational Efficiency: Replace time-consuming procedures with quick and easy techniques.

• Revenue Maximization: Promotions and offers can be uploaded quickly for instant confirmation to secure business, especially for low season.

• Reduce Intermediary Costs: Get exposed and connected directly to hundreds of reseller Agents and gain higher margins.

• Best Benefit For Hotel Group: One single system for all properties belongs to a hotel group rather than working separately with each property.

What are the benefits of B2B Distribution Manager for Hotels?

The benefits of hotel distribution include:

• Increased online visibility: By linking with multiple distribution channels, hotels can increase their online visibility and reach a wider audience, including international travelers and niche segments.

• Improved revenue management: Hotel connection and distribution technologies enable hotels to dynamically alter their prices and inventory based on market demand, enhancing revenue management and revenue potential.

• Enhanced operational efficiency: By automating many operational tasks, such as inventory updates, bookings, and payments, hotel connectivity and distribution systems can simplify hotel operations and reduce errors.

• Better customer reach: Through hotel connectivity and distribution, hotels can attract new clients from different segments and regions, enhancing their customer base and loyalty.

• Real-time data insights: Hotel connectivity and distribution systems provide real-time data insights on demand, competition, and market trends, allowing hotels to make informed decisions and adjust their strategy accordingly.

• Improved guest experience: By providing a unified booking experience across all channels, hotels can boost customer satisfaction and brand loyalty.

• Increased revenue streams: By leveraging multiple distribution channels, hotels can broaden their revenue streams and reduce their reliance on a single channel or market.