- Reported rate integrity issues for hotel partners reduced by 90% to a historic low over the last six months – falling to 0.01% of total room night production.
- Results driven by investment into automated technology unavailable elsewhere in the market, creation of team dedicated to monitoring rates, and introduction of strict ‘three strikes’ policy for policy offenders.
- Over 800 sales channels belonging to clients restricted during last quarter following company-wide deployment of new strategy on rate integrity.
- Hotelbeds has stopped approximately €300 million of otherwise profitable sales during last year to enforce new policy as part of commitment to hotels.
- Continued focus on further growing portfolio of +60,000 B2B buyers with client types highly valued by hoteliers, including Tour Operators, Travel Agents and Airlines.
Palma, Spain 4th November 2019 – Hotelbeds, the world´s leading bedbank, has today provided an update on the successful implementation of new distribution management rules that directly address the rate integrity challenge for its 180,000 hotel partners globally.
As part of its policy to collaborate only with travel distribution companies that clearly add incremental value to hotel partners, Hotelbeds has invested heavily in new and market-leading automated technologies unavailable elsewhere in the market.
Using data analytics, tracking travel sellers’ flows and monitoring on a regular basis, Hotelbeds is able to accurately segment and monitor how contracted products are distributed.
To efficiently manage these processes Hotelbeds has established a team of professionals dedicated to ensuring that rates intended for offline channels are not sold by OTAs.
Additionally Hotelbeds has also implemented a strict ‘three strike policy’ that disconnects – after only three warnings – offenders that have been found to distribute opaque rates in the OTA channel.
Following extensive internal training across Hotelbeds on how to effectively implement the new distribution rules, during the last three months the company has restricted access to rates for over 800 sales channels belonging to clients
These changes have meant that during the last year Hotelbeds has stopped around €300 million of otherwise profitable sales to ensure compliance with the new policy as part of its commitment to hotel partners.
As a direct result of the above changes, Hotelbeds is pleased to confirm that over the last six months the number of incidences have been reduced by 90% to reach a historic low, bringing reported issues down to just 0.01% of total room night production.
Bookings via B2B channels provide hotels guests that typically book further in advance, cancel less, pay a higher ADR, spend and tip more in-destination, and come back more often – in particular because of the high percentage of non-domestic and long-haul bookings these channels tend to generate.
