Hotel Wholesaler Complete Guide: How B2B Distribution Really Works

Understanding how hotel wholesaling works is essential for travel agencies seeking competitive rates. This guide explains the B2B hotel distribution chain, key players, and strategies for accessing the best wholesale pricing.

The Hotel Distribution Ecosystem

Hotel inventory flows through multiple channels before reaching travel agencies:

• Hotels: Properties allocate rooms to various distribution partners at negotiated rates
• Bedbanks/Wholesalers: Aggregate inventory from multiple hotels, selling to travel agencies at marked-up net rates
• Aggregators: Connect multiple bedbanks through single integrations, enabling rate comparison
• Travel Agencies: Access inventory from aggregators or bedbanks, adding their own margins

Each layer adds value (and cost). Smart agencies minimize intermediaries to maximize margins.

Understanding Net Rates vs Retail Rates

The fundamental pricing concepts in B2B hotel distribution:

• Net Rate: The wholesale price paid to the supplier, before any markup. This is your cost.
• Sell Rate: The price you charge customers. The difference is your margin.
• Commissionable Rate: A retail rate where the agency earns a percentage commission rather than setting markup.

Net rate models offer more flexibility and typically higher margins than commission-based models. The trade-off is assuming pricing risk.

Major Wholesaler Categories

Global Bedbanks

Large-scale aggregators with extensive international inventory. They negotiate directly with hotel chains and independent properties worldwide, offering competitive rates through volume.

Regional Specialists

Focused on specific geographic areas with deep local relationships. Often provide better rates and availability for their specialty regions than global players.

Chain-Direct Programs

Major hotel chains (Marriott, Hilton, IHG) offer B2B programs with contracted rates. Good for brand-conscious clients but limited to single chains.

Accessing the Best Rates

Strategies for optimizing your wholesale hotel costs:

1. Multi-supplier comparison: Always compare rates across multiple sources for the same property
2. Volume commitments: Higher booking volumes often unlock better rate tiers
3. Advanced booking: Rates typically improve for bookings made 60+ days in advance
4. Off-peak targeting: Shoulder seasons offer the best margin opportunities
5. Direct negotiations: For key properties, negotiate directly for exclusive rates

Technology's Role in Wholesaling

Modern B2B platforms transform how agencies access wholesale inventory:

• Real-time aggregation: Search multiple suppliers simultaneously, automatically selecting the best rate
• Intelligent deduplication: Eliminate duplicate listings from multiple sources
• Dynamic markup: Set different margins by destination, property type, or customer segment
• Rate monitoring: Track price changes and opportunity for rebooking

The most successful agencies leverage technology to access institutional-grade pricing without institutional-scale volume.