Hotel consolidator
Encyclopedia
Hotel consolidator is a travel company or business that buys up blocks of hotel rooms in top destinations and then resells them at discounted rates to the final customer. Hotel consolidators’ seemingly to broker
s buy in bulk and then resell at a predetermined discount thus creating a big push search for discounted hotel deals online and passing the savings on to their customers.
Global hotel consolidators usually offer discounted rooms in almost every major tourist destination
, big city or popular resort while local consolidators focus only on a particular geographic area trying to be most competitive on a key for the company market.
Hotel consolidator’s activity can be separated into two main operations: 1) Buying blocks of rooms at volume discounts in certain major cities 2) Distributing “excess rooms” offered by hotels not anticipating full occupancy for given dates.
s, the consolidators are able to achieve deep discounts due to their buying power. Hotels are willing to offer dramatically reduced room rates to consolidators because they know it will yield a greater number of reservations.
Many hotels are interested in selling room blocks (allotments
) to consolidators, because they know that discounted rooms mean more business in the long run and subsequently a greater profit for them.
through a hotel consolidator or from hotel consolidator’s retailer you can either get the least appealing room in the hotel, or you can get a surprising free upgrade to a higher class room if all other standard rooms have been sold out. The key advantage of booking a hotel room through a hotel consolidator is that just one call or just one website
visit can get you a room at a 20 to 35 % discounted price. The key disadvantage is that prices are not negotiable and the cancellation and amendment charges can be pretty harsh. Additional benefit of hotel consolidators is that they have rooms available when all other hotels are sold out during conventions and trade fairs.
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
s buy in bulk and then resell at a predetermined discount thus creating a big push search for discounted hotel deals online and passing the savings on to their customers.
Global hotel consolidators usually offer discounted rooms in almost every major tourist destination
Destination
Destination was a disco studio group from New York who had two chart entries: In 1979, "Move On Up" / "Up Up Up" / "Destination's Theme," which spent four weeks at number one on the Hot Dance Music/Club Play chart, and #68 on the Hot Soul Singles chart...
, big city or popular resort while local consolidators focus only on a particular geographic area trying to be most competitive on a key for the company market.
Hotel consolidator’s activity can be separated into two main operations: 1) Buying blocks of rooms at volume discounts in certain major cities 2) Distributing “excess rooms” offered by hotels not anticipating full occupancy for given dates.
The strength in numbers
In comparison to individuals who contact hotels directly and ask for discountDiscounts and allowances
Discounts and allowances are reductions to a basic price of goods or services.They can occur anywhere in the distribution channel, modifying either the manufacturer's list price , the retail price , or the list price Discounts and allowances are reductions to a basic price of goods or services.They...
s, the consolidators are able to achieve deep discounts due to their buying power. Hotels are willing to offer dramatically reduced room rates to consolidators because they know it will yield a greater number of reservations.
Many hotels are interested in selling room blocks (allotments
Allotment (travel industry)
Allotments in the tourism industry are used to designate a certain block of pre-negotiated carrier seats or hotel rooms which have been bought out and held by a travel organizer with a huge buying power like a wholesaler, tour operator or hotel consolidator, and more rarely by a retail travel...
) to consolidators, because they know that discounted rooms mean more business in the long run and subsequently a greater profit for them.
Final Client benefits
When bookingBooking
Booking may refer to:* Booking , a Korean comics anthology magazine published by Haksan* Booking , the laying out of the plot before a professional wrestling match* An accounting system a.k.a...
through a hotel consolidator or from hotel consolidator’s retailer you can either get the least appealing room in the hotel, or you can get a surprising free upgrade to a higher class room if all other standard rooms have been sold out. The key advantage of booking a hotel room through a hotel consolidator is that just one call or just one website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
visit can get you a room at a 20 to 35 % discounted price. The key disadvantage is that prices are not negotiable and the cancellation and amendment charges can be pretty harsh. Additional benefit of hotel consolidators is that they have rooms available when all other hotels are sold out during conventions and trade fairs.