Hotel Distribution Agreement

Barcelona, October 21, 2013 – Sabre Travel Network, a global travel company serving tour operators and travel agencies, has signed a multi-year distribution contract with HRS, the world`s leading hotel solutions company. The agreement complements the existing relationship between HRS and GetThere. In addition, it is also very common for wholesalers to unbundle tariffs that must be sold as part of packages. According to Triptease`s study, Spotlight on Wholesalers, “most hotels expect wholesalers to pack this, and contracts suggest it, but wholesalers don`t always pack their hotel inventory with important travel items like a flight or a car at their place of sale. These very low prices will find their way on OTAs like Amoma, and a hotel room worth $200 will eventually be sold for $120. “Sabre is a valuable distribution channel that will help us expand our international reach, particularly in North America, South America and Asia,” said Tobias Ragge, CEO of HRS. “Sabre has a lot to offer HRS and we are pleased to share with them some of our 250,000 hotels in our portfolio. The agreement underlines our strategy of making our content available through a variety of channels, significantly expanding the coverage of our hotel partners and increasing their booking volume. HRS` integrated end-to-end solution, which directly links independent real estate to the GDS, helps reduce the distribution costs of our hotel partners by 10% compared to competing solutions. As a hotelier, it is not feasible for your extensive distribution strategy to sever all ties with wholesalers. However, here are some practical ways to optimize your wholesale strategy and ensure better control of distribution and prices: even if a wholesaler can help a hotel achieve full occupancy, there are some challenges associated with this non-direct sales model, so much so that the current situation has many hoteliers at the end of their tether. “We offer immediate access at competitive prices, with hotel availability updated in real time, so travel agencies can guarantee their customers prices and accommodation to improve their customer experience.” Today, hoteliers around the world have limitless possibilities for distribution channels. While direct bookings are considered the most cost-effective bookings, the usefulness and scope of indirect bookings cannot be compromised. After resale, the OTA will apply a mark-up on the final price of your room depending on the marketing policy.

It is not the prerogative of wholesalers to control downstream distribution, hence such a distribution problem in this sector. In addition, wholesalers also work on a model that records their hotel purchase rate. All the promise of value from the wholesaler is probably their resale price, which allows the recipient of this hotel room to add his supplement and sub-contribute to the hotel prices, resulting in huge price differences.

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