In most cases, direct booking for hotels is deemed as the most profitable. However, hoteliers cannot deny the benefit of indirect bookings. That is where distribution channels come into play. When it comes to distribution channels, hoteliers across the globe have a variety of options. They can consider working with OTAs (Online Travel Agencies), hotel metasearch sites, direct and indirect channels, and wholesalers.
The wholesale distribution model, in particular, employs a middle person between a hotel and an OTA or travel agent. It sources the hotel room nights in bulk, packages them, negotiates rates, and then sells them to OTAs and travel agents.
This wholesale distribution model, however, can be confronted with several challenges. In the following section, we’ll determine what these challenges are and how to address them.
Wholesale distribution challenges
The wholesale distribution model allows hoteliers to reach a wide range of markets to get more bookings. Wholesalers also allow hoteliers to maximize their room occupancy with guaranteed rates. Despite these benefits, hoteliers can face the following challenges with a wholesale distribution model:
Overcoming wholesale distribution challenges
Despite the two main challenges, there are a few practical ways through which you can optimize your wholesale distribution strategy. The following tips can ensure better control of the distribution as well as the right pricing:
The wholesale distribution model can be a bit challenging. However, when you have full control over the distribution and pricing, you’ll see the benefits that you can get out of it. You can be assured of a wide range of markets that you can possibly reach out to. Follow the tips mentioned above to overcome the challenges in the wholesale distribution model.
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