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The importance of distribution in the B2B segment

A modern and efficient global distributor will help you sell better.

We talked about Direct Sales in past articles as well as marketing through OTAs but it key to balance our sales distribution to avoid “putting all our eggs in the same basket”.

Today we want to talk about a very important aspect in hotel’s sales distribution: the B2B segment.

As always, we like to cover the basics to then analyze the subject in depth:

What is it?

B2B is the acronym for Business to Business.

Transactions made between companies.

In hospitality and tourism, B2B accommodation sales are made between a wholesale travel agency and a retail agency.

That means your hotel sells room nights to a wholesale travel agency or B2B distributor and they sell later to a retail travel agency (those whose end customer is the guest).

There are also larger distributors or wholesalers who in turn sell the rooms to other wholesalers, adding an extra lint to that chain of intermediaries.

Of course, each of these steps takes a profit margin for itself, which means that at the end of the day your hotel’s margin is reduced by the number of mediators that are joining this chain. As a consequence, the addition of more intermediaries causes the hotel to lose control over their room rates and forces them to receive reservations without knowing their exact origin! This makes it very difficult for hotels to manage content (descriptions, images) on every link of the chain losing control over their own product.

This sale channel – which is actually a sum of channels and not just one – can sometimes generate doubts about the operation due to its complexity. But what is clear for every hotelier is that being able to sell directly to the wholesaler or retailer – avoiding the distributors or wholesalers who mediate and take part of the cake – is always the best option. The good news is that there are technological solutions – FREE OF CHARGE of course – that make this possible. If you connect your hotel to a competent and modern B2B distributor (link) you will see excellent results.

In these current times, where the way of booking, the type of guest and the sale channels are changing so much, the importance of covering a wider range of distribution with better pricing is essencial for your hotel.

CM Reservas may provide this solution.

How?

Offering you to connect your hotel FREE OF CHARGE to Hyperguest through our Channel Manager

HyperGuest is the B2B distribution platform for the hospitality industry.

Our technology offers excellent value for money and user experience by facilitating direct reservations between hotels and tour operators. We are not a wholesaler, we are not a dealer, we are not an intermediary. We are simply a Marketplace that provides the technology to link your hotel and operators in the region and the world. Best of all: we are not looking to sell you anything because this solution is 100% free!

Rooms and accommodation rates are shared through an electronic platform, which guarantees rate transparency, content accuracy, payment security, transaction success, and higher profit margins for your hotel.

We also connect with all channel managers! You can check  for yours.

HyperGuest has an innovative, open and highly scalable technological platform, which allows any hosting company to present its offer (rates and availability) in a fluid and efficient way. Likewise, any travel operator can search and book in a simple and agile way, without having to have a prior relationship with the hotel.

The platform includes an integrated payment module that eliminates the complex reconciliation process, as well as a complete data module with which hotels can control images and content of their property throughout the value chain.

The advantages are many:

  • Eliminates intermediaries, excessive commissions and unreliable bookings.
  • No transaction, publication or maintenance costs.
  • Ensures rate transparency, content accuracy, payment security, transaction success, and higher profit margins.
  • Break the chain of intermediaries between your hotel and travel operators offering a direct connection.

It is the ideal solution in a context where hoteliers face increasingly high commissions, the absence of control over rate disparity, lack of direct contact with their new guests and absurd increase in marketing expenses.

What did you think of this information? Did you know about these advantages?

We invite you to contact us so that we can tell you more about this solution

About the author

Carla Marrone