Hotels could be losing up to 10% of revenue because of opaque distribution channels, based on partner performance data and test bookings conducted by Rocket Travel by Agoda. For today’s hotel chains, data-driven insights, advanced technologies, and strategic partnerships are critical puzzle pieces to navigate increasingly complex wholesale distribution channels.

“The Wholesale Hotel Playbook: How Technology and Data are Redefining Distribution”, a new report co-developed by Skift and Rocket Travel by Agoda, details the critical challenges posed by complicated and opaque wholesale distribution channels, including:
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• Issues with rate parity caused by a lack of visibility and control over room pricing across multiple channels
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• Inflated sales costs due to discounts and incentives given to middlemen such as online travel agencies (OTAs) or metasearch engines
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These challenges highlight the growing need for improved transparency, control, and the adoption of data-driven strategies to tackle these issues.  

“Hotels are leaving money on the table by relying on opaque and outdated traditional wholesale distribution channels,” said Damien Pfirsch, Head of Rocket Travel by Agoda. “This report shows how hotel chains can regain control, reduce rate leakage, and unlock significant revenue growth by harnessing data-driven insights and adopting the right technologies.” 

The report addresses three distinct and unique areas where Rocket Travel by Agoda’s solution helps hoteliers regain control and increase revenue.
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• It ensures rate integrity by offering transparency and detailed insights into rate distribution and partner performance.
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• It provides enhanced control, allowing hotel chains to selectively manage partnerships with defined terms and conditions.
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• Its data-driven insights empower hotels to align marketing strategies with operational goals, boosting revenue opportunities.
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By pulling back the veil on rate distribution and putting control in the hands of our partners, Rocket Travel by Agoda has helped our partner hotels improve rate parity and increase revenue. For example, a partner chain achieved a rate parity score improvement from 40% to 76% over an eight-month period. In another case, a hotel chain previously relied heavily on a few major, long-standing partners for bookings. This reliance restricted its market reach and revenue potential. Rocket Travel by Agoda helped them incorporate new partners, significantly boosting total booking revenue from 16% in the first quarter to 49% by the fourth quarter. 

Drawing on Rocket Travel by Agoda’s experience in pioneering an innovative wholesale distribution platform, the report addresses the gaps and critical needs for hoteliers to optimize their systems.