50+ Terminologies used for Hotel Wholesaler in Travel Industry
Abhinav Sinha
The travel industry’s complex distribution network involves numerous intermediaries, each playing a crucial role in connecting hotels with travelers. Among these intermediaries, hotel wholesalers stand out as pivotal players, yet they’re known by various terms across different regions and contexts. Understanding these terminologies is essential for travel professionals navigating the intricate landscape of hotel distribution.
What is a Hotel Wholesaler?
A hotel wholesaler is a third-party organization that purchases hotel room inventory in bulk from accommodation providers at discounted rates and then redistributes this inventory to travel sellers such as online travel agencies (OTAs), travel agents, tour operators, and destination management companies (DMCs). These intermediaries operate in the B2B segment, meaning they don’t sell directly to end consumers but rather to other distribution channels.Â
The primary function of hotel wholesalers is to bridge the gap between hotels seeking broader market reach and travel sellers requiring diverse accommodation options for their customers. By negotiating bulk rates and managing complex distribution networks, wholesalers enable hotels to access markets they might otherwise struggle to reach independently.Â
Complete List: 50+ Different Terminologies for Hotel Suppliers Worldwide
Primary Wholesale Terms:Â
- Hotel Wholesalers – Traditional bulk purchasers of hotel inventoryÂ
- Hotel Suppliers – North American term for inventory providersÂ
- Hotel Distributors – European terminology emphasizing distribution channelsÂ
- Hotel Aggregators – APAC region term for inventory consolidatorsÂ
- Bed Banks – Specialized accommodation-only wholesalersÂ
- Hotel Vendors – Business-to-business inventory sellersÂ
- Demand Partners – US terminology focusing on demand generationÂ
- Hotel Providers – General term for accommodation suppliersÂ
- Hotel Brokers – Intermediaries acting as middlemenÂ
- Tvravel Suppliers – Broader category including hotels and other travel servicesÂ
North America: Hotel Suppliers and Demand Partners
Specialized Terminology:Â
- Accommodation Wholesalers – Focus on all types of lodgingÂ
- Room Banks – Alternative term for bed banksÂ
- Hotel Consolidators – Companies that consolidate multiple hotel sourcesÂ
- Inventory Aggregators – Technology-focused consolidation platformsÂ
- Channel Partners – Distribution channel focused terminologyÂ
- Supply Partners – Supplier relationship emphasisÂ
- Hotel Network Providers – Multi-hotel portfolio managersÂ
- Accommodation Aggregators – Broader lodging category consolidatorsÂ
- Hotel Portfolio Managers – Companies managing multiple hotel relationshipsÂ
- Travel Inventory Providers – Multi-product travel suppliers
Technology-Driven Terms:Â
- Hotel API Providers – Technology platform suppliersÂ
- Travel Tech Platforms – Comprehensive technology solutionsÂ
- Connectivity Providers – API integration specialistsÂ
- Hotel XML Suppliers – Data format specific providersÂ
- Channel Managers – Inventory distribution technologyÂ
- Integration Partners – Technology integration specialistsÂ
- Platform Providers – Comprehensive platform solutionsÂ
- Travel Aggregation Platforms – Multi-supplier consolidation technologyÂ
- Hotel Booking Engines – Direct booking technology providersÂ
- Unified API Providers – Single-point integration solutionsÂ
Regional and Market-Specific Terms:Â
- Inbound Tour Operators – Regional incoming travel specialistsÂ
- Ground Handlers – Local destination service providersÂ
- Receptive Operators – Destination-based service providersÂ
- Local Suppliers – Regional accommodation providersÂ
- Domestic Wholesalers – Country-specific operatorsÂ
- International Distributors – Cross-border distribution specialistsÂ
- Regional Aggregators – Geographic-specific consolidatorsÂ
- Market Specialists – Niche market focused suppliersÂ
- Destination Specialists – Location-expert providersÂ
- Cultural Tourism Suppliers – Specialized experience providersÂ
Business Model Classifications:Â
- Net Rate Providers – Wholesale pricing model suppliersÂ
- Merchant Rate Suppliers – Retail pricing model providersÂ
- Commission-Based Suppliers – Agency model operatorsÂ
- Mark-up Model Providers – Traditional wholesale modelÂ
- Dynamic Pricing Suppliers – Real-time pricing adjustment providersÂ
- Fixed Rate Contractors – Long-term rate agreement providersÂ
- Flexible Rate Suppliers – Variable pricing model providersÂ
- Volume Discount Providers – Bulk purchase incentive suppliersÂ
- Tier-Based Suppliers – Volume-dependent pricing providersÂ
- Subscription Model Providers – Membership-based access suppliers
Also Read What is a Hotel Channel Manager and How Does it Work?
In North America, particularly the United States and Canada, hotel wholesalers are commonly referred to as “hotel suppliers“. This terminology emphasizes their role as providers of hotel inventory to the broader travel distribution network. Hotel suppliers in this region focus on sourcing and acquiring hotel products in bulk, then selling them to hotel buyers such as OTAs, tour operators, and DMCs.Â
Another popular term in the USA is “demand partners”. This designation highlights their function as entities that generate demand for hotel inventory by working closely with accommodation providers. Demand partners operate similarly to traditional wholesalers but emphasize their role in driving bookings and revenue for hotel partners.Â
The term “hotel providers“ is also frequently used in the B2B marketplace across North America, particularly when describing companies that offer comprehensive hotel booking solutions to travel agencies and corporate clients.Â
Europe: Hotel Distributors and Vendors
European markets typically use the term “hotel distributors” to describe wholesalers. This terminology reflects their primary function of distributing hotel inventory across various channels and geographic markets. Hotel distributors in Europe often negotiate special discounted rates with accommodation providers and sell them to OTAs, DMCs, and tour operators throughout the continent.Â
“Hotel vendors” is another universal term used across European markets. Hotel vendors are distinguished from hotel amenities vendors, as they specifically deal with selling hotel products to travel buyers rather than providing hotel supplies or services.Â
Asia-Pacific: Hotel Aggregators
Specialized Terminology by Business Model
In the Asia-Pacific (APAC) region, wholesalers are commonly called “hotel aggregators”. This terminology became particularly popular in the mid-2000s as the region’s travel industry evolved rapidly. While their business model shares similarities with traditional wholesalers, hotel aggregators often have a slightly different operational approach.Â
Hotel aggregators in APAC frequently operate as intermediaries that lease hotel rooms and take responsibility for marketing and operational functions. This model allows them to offer more integrated services and maintain closer relationships with both hotels and travel sellers.Â
Bed BanksÂ
One of the most specific types of hotel wholesalers is known as “bed banks”. This term describes specialized B2B platforms that focus exclusively on accommodation wholesaling. Bed banks purchase large room allotments from hotels at discounted bulk rates and resell them to various travel distributors.Â
Key characteristics of bed banks include:Â
- Wide inventory scope: Offering diverse accommodation types from hotels to apartments and villasÂ
- Real-time availability: Providing instant access to room inventory and pricingÂ
- Competitive rates: Negotiating significant discounts due to bulk purchasing powerÂ
- Integration capabilities: Offering seamless API connections with travel seller platformsÂ
Major bed banks in the industry include Hotelbeds, WebBeds, GRNConnect, and Bonotel, among others. These companies have become essential components of the global hotel distribution ecosystem.Â
Hotel BrokersÂ
The term “hotel brokers” is often used interchangeably with wholesalers, particularly when referring to entities that act as intermediaries between hotels and customers. Hotel brokers typically purchase rooms in bulk at discounted rates and package them with other travel services before selling to travel agencies or directly to consumers.Â
Tour Operators as WholesalersÂ
Tour operators represent another category that often functions as hotel wholesalers. These companies buy travel products in bulk, bundle them to create comprehensive travel packages, and distribute them through retailers or sometimes directly to travelers. Tour operators frequently contract hotel rooms as part of their package offerings, effectively functioning as specialized wholesalers.Â
Destination Management Companies (DMCs)Â
Destination Management Companies deserve special mention in the wholesaler ecosystem. While not traditional wholesalers, DMCs often source hotel inventory in bulk and act as intermediaries between local accommodation providers and international tour operators or travel agencies.Â
DMCs provide several key services:Â
- Local expertise: Deep knowledge of specific destinations and regional suppliersÂ
- Comprehensive services: Bundling accommodation with transportation, activities, and local experiencesÂ
- B2B and B2C operations: Some work exclusively with travel professionals, while others serve end consumersÂ
- Cultural and language support: Offering multilingual services and cultural insightsÂ
Technology Platform ProvidersÂ
Modern hotel distribution has given rise to “hotel API providers“ and “travel technology platforms” that function as sophisticated wholesalers. These companies like ZentrumHub, Expedia Partner Solutions, and others provide unified access to multiple hotel suppliers through single API integrations.Â
These technology-driven wholesalers offer:Â
- Unified connectivity: Access to numerous suppliers through one integrationÂ
- Real-time data processing: Instant availability and pricing updatesÂ
- Scalable solutions: Platforms that grow with client needsÂ
- Advanced analytics: Data insights for informed decision-makingÂ
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Understanding the Distribution ChainÂ
The complexity of hotel distribution means that multiple terminologies often apply to the same entity, depending on their role in a specific transaction. A single company might function as:Â
- A wholesaler when purchasing inventory from hotelsÂ
- A supplier when providing inventory to OTAsÂ
- A distributor when managing multiple sales channelsÂ
- An aggregator when consolidating inventory from various sourcesÂ
Regional Business Model Variations
Traditional Wholesale ModelÂ
The classic model involves purchasing hotel rooms at net rates and reselling them with markup to travel agents and tour operators. This model is still prevalent in many established markets.Â
Agency ModelÂ
Some wholesalers operate on an agency basis, earning commissions rather than marking up rates. This model is becoming increasingly popular as it offers more transparency in pricing.Â
Merchant ModelÂ
In the merchant model, wholesalers purchase inventory at net rates and have the flexibility to set their own selling prices, similar to how OTAs operate.Â
Dynamic Packaging ModelÂ
Modern wholesalers often offer dynamic packaging capabilities, allowing travel sellers to combine hotel inventory with flights, transfers, and activities in real-time.Â
Industry Impact and Future TrendsÂ
The terminology surrounding hotel wholesalers continues to evolve as the industry adapts to new technologies and changing consumer behaviors. Several trends are shaping the future of wholesale terminology:Â
Technology Integration: Terms like “API providers” and “connectivity platforms” are becoming more common as technology plays an increasingly central role in distribution.Â
Specialization: More specific terms are emerging to describe niche wholesalers focusing on particular market segments, such as “luxury bed banks” or “budget accommodation aggregators.”Â
Sustainability Focus: New terminology is developing around “sustainable travel suppliers” and “eco-conscious wholesalers” as environmental concerns become more prominent.Â
Direct Connectivity: The rise of “direct connect providers” and “channel-free distribution” reflects the industry’s movement toward more streamlined distribution models.Â
Conclusion
Understanding the diverse terminology used for hotel wholesalers across different regions and contexts is crucial for travel industry professionals. While the core function remains consistent – acting as intermediaries between hotels and travel sellers – the specific terms used can vary significantly based on geographic location, business model, and target market.Â
Whether referred to as hotel suppliers, demand partners, distributors, aggregators, bed banks, or any other terminology, these entities play an essential role in the global travel ecosystem. They enable hotels to reach broader markets while providing travel sellers with access to diverse accommodation options at competitive rates.Â
Recommended Blogs
- What is a Hotel Wholesaler?
- Complete List: 50+ Different Terminologies for Hotel Suppliers Worldwide
- North America: Hotel Suppliers and Demand Partners
- Europe: Hotel Distributors and Vendors
- Asia-Pacific: Hotel Aggregators
- Specialized Terminology by Business Model
- Regional Business Model Variations
- Conclusion
- Recommended Blogs