How Wholesalers Influence the Hotel Market

Wholesalers can be the bane of a hotelier’s existence if they are buying up rooms and filling them on OTAs at prices that your direct booking site can’t match. There is nothing more frustrating for a traveler than searching for a room and seeing a great rate on an OTA, and then going to the hotel’s website only to find that a direct booking is double the price.

However, you can also turn wholesalers to your advantage. Here are a few reasons to consider an “if you can’t beat them, join them” approach:

  • Wholesalers can help you get bookings way in advance – basically, they are buying the rooms from you at an extremely discounted rate. Selling them rooms during days/weeks that would normally be slow can allow you to sell out rooms (albeit at a discount).
  • Wholesalers provide you with access to travelers you wouldn’t usually reach – those budget travelers may enjoy your hotel so much that they stay with you again, even if they can’t get the same deal next time.
  • Airline partners bring in customers without upsetting non-wholesale bookings – when the hotel is connected to an entire itinerary, consumers on OTAs do not see the extremely discounted hotel rates separately. As a result, there are no hurt feelings because prices on your website match the hotel-only prices at the OTAs.

Prep Your Hotel for Returning Travelers

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