Banking on a Bedbank

There is no greater feeling than making a smart investment. Have you ever woken up one morning and decided to spend your savings on something you’ve always wanted? A fancy car? A new house? Many claim the purchase is the satisfying part of the experience, but what they fail to realize is the time and research invested into finding the right source can make a difference. In the supplier world, the investment is in room distribution.

According to a Hotel News Now article, there are over half a million-accommodation providers within the top 10 brands that control just 13% of the revenue. Imagine being one of these providers and distributing rooms via the direct channel, but find yourself unable to sell to the final customer. The scale is too big, and your supplier does not have the marketing muscle to achieve this.

Your first instinct is to use B2C intermediaries, (also known as Tour Operators and retail agencies), but the more you dive into the thousands of B2C intermediaries in the market, the quicker you realize it’s impossible to work with all of them at scale.

They lack commercial experience, their back office is slow and they simply don’t have enough manpower to maintain all of these relationships.

If only there was a way to connect with these B2C intermediaries. Lucky for suppliers, there are bedbanks that make the task easier. They’re the link between suppliers and B2C intermediaries, and exist to connect the two.

So why would a top brand hotel choose to work with a bedbank instead of distributing rooms directly?

Here are a few reasons why banking on a bedbank is the way to go:

Quick and Easy Distribution: Accessing a wide distribution is not only the fastest way to reach B2C intermediaries, but it also provides the latter with the product content they cannot source directly themselves.

Diversity at a Global Scale: Think about the diversity of travel distributors you’d have access to. With over tens of thousands of markets worldwide, one can easily target various geographical types of contacts by instantly connecting to a bedbank. It provides a broader range of exposure at capacity, and allows product owners the choice to maintain a healthy diversification in their distribution mix.

No Dependency, No Limitations: With a diverse distribution mix, it also allows distributors to avoid dependency on dominant OTAs. When committed to dominant OTAs, distributors are limited based off the OTA’s disposition. There’s only a certain target the OTA will work with, or the OTA doesn’t have the capability and technology to deliver instantly. However, by working with a bedbank, there are a variety of markets to choose from.

The era of bedbanks has grown over the past year. It has become a culture of high performance powered by technology and looks beyond traditional segments with hopes of continuing to increase every year.

Sources: Hotel News Now

Posted by Colorina Ramos