Understanding Global Distribution Channels: Bedbanks

Within an industry as competitive and fast-paced as travel and hospitality, it can often be a challenge for many businesses to understand the complex nature of distribution channels, and the changing distribution landscape. As hotel owners this, of course, is a crucial aspect of the hospitality sector to understand and ensure is bringing the utmost benefits for your hotel. Especially considering that the global hospitality market is expected to grow to as much as $6.7 billion by 2026 according to a recent global report.

So, it’s no longer enough to be competitive – as hotel owners you must remain competitive, capitalise on every available opportunity, and be as visible as possible to the right customer, at the right time, to maximise occupancy rates.
 
To remain competitive and to develop a profitable strategy that works best for your hotel, it’s important to utilise technology and meet new and upcoming demands from potential guests. The best way to do this is by maximising your use of global distribution channels – such as Bedbanks, Direct Channel and Online Travel Agencies (OTAs).
 
In this article, we will take a closer look at the benefits of working with a Bedbank as a part of your wider distribution strategy, and how Bedbanks as a distribution channel offer many opportunities to boost your hotel’s success.

For an even more in-depth look at the distribution landscape and its different channels download our guide to understanding global distribution, a free resource available at the end of this article.

What Is A Distribution Channel?

In the travel industry, a distribution channel is a key chain of businesses and intermediaries, through which hotel rooms, travel services or products are passed through before they reach the final customer - the guest. These channels of distribution offer their own benefits to you as hotel owners and are commonly used alongside each other, with unique weightings depending on what works best for each hotel on an individual basis.

The most common types of travel distribution channels include: 

• Bedbanks - like us at Hotelbeds!
• Online Travel Agencies (OTAs) - such as Booking.com, Expedia 
• Metasearch Platforms - such as Trivago, Kayak, TripAdvisor and Google 
• Direct - often also referred to as dotcom or brand.com distribution, direct channel distribution is via the hotel’s own website, point-of-sale system, app or affiliate website

Ensuring that you choose the right distribution strategy for your hotel(s) is vital, and can have a significant impact on your revenue. This is why we’re taking a closer look at how partnering with a bedbank as part of your distribution channel strategy can bring large-scale benefits which you may not have access to via other channels. 

It’s also important to remember that your distribution channel strategy needs to be constantly reviewed and updated to align with the travel industry’s changing demands. What works today may not work tomorrow, so it’s a valuable practice to ensure that you’re allocating the right capacity to each of your hotel distribution channels.

How Do Bedbanks Fit Into The Distribution Channel Landscape?

Bedbanks form an exclusively business to business (B2B) link between travel buyers and you as hotel owners. 

Here is a simplified breakdown of how a bedbank fits operates as one of the most common travel distribution channels for hotels:

• A Bedbank, like Hotelbeds, acts as a wholesaler, providing easy access to opaque, B2B channels.
• This includes retail travel agencies, tour operators, airlines and loyalty programmes.
• The hotelier acts as a supplier, making rooms available on the Bedbanks’ wholesaler network.
• This network is distributed to B2B buyers, and the hotel owner increases their occupancy rates as a result of increased exposure. 

As a leader in the global distribution landscape, and the TravelTech space, here at Hotelbeds we are a Bedbank that goes above and beyond just connecting buyers and sellers in the marketplace. Our partners are empowered not only by our position as a leader in the TravelTech space and the associated connections that come with this, but also by our deep experience driving growth for our partners without competing for the end customer.

What Are The Advantages Of Partnering With A Bedbank As A Channel of Distribution?

One of the most common challenges that many hotel owners will face is exposure to the right source markets. International travel is one of the highest earners in the travel industry, and is certainly a sector of the market that promises high revenue - for hotels that are visible.

This visibility is something that partnering with a Bedbank offers. In fact, at Hotelbeds, over 60% of bookings within our network originate from non-domestic source markets. 

We explore just how beneficial partnering with a Bedbank can be for your hotel in our guide to understanding global distribution, which demonstrates how we at Hotelbeds can provide incremental growth for your business as part of your wider distribution strategy. Download this guide for free below!

Here are a few insights as to how, as an impactful hotel distribution channel, Bedbanks provide many significant benefits: 

• Generates a high percentage of non-domestic and long-haul bookings 
• Matches capacity with demand - dedicated account managers will assist with yield management strategies and advice on prime opportunities to sell the right room to the right guest, for the highest amount.
• Connects offline and online distribution channels 
• Offers easy global reach and high-value guests - often from hard-to-reach source markets that would be challenging or costly for hotels to reach directly.
• Compliments your direct channel distribution - without competing for the end customer.
• Provides clear commission and stable conditions - which means there are no surprises for you as hotel owners.
• Offers dedicated account managers and marketing experts - to help scale the success of your business at every opportunity.

Maintaining a healthy distribution mix is vital to the success of your hotel, and while there is no one-size-fits-all recommendation for how to weight your distribution channels, working with a Bedbank allows you to fully realise the potential of your hotels by diversifying your channels.