Suppliers win when they are able to get their inventory in front of as many people as possible. Wholesale pricing in particular can be a win-win-win scenario for suppliers, buyers, and customers alike. It isn't just about selling inventory at a lower cost; it can open doors to new markets and customer segments that might have been previously inaccessible.

For chains and suppliers, reaching more high-value travelers can be facilitated through strategic distribution. This can be done through:

• Listing properties: Working with specific partners to feature properties on platforms with high traffic and established trust.
• Offering wholesale rates: Offering competitive rates to select partners to increase the inventory's desirability while reducing overhead of managing a global partnership network.

Chains and suppliers can see a variety of benefits of providing wholesale rates to trusted brands, whether it is an online travel agency (OTA) or another distribution partner. 
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Receive more exposure

OTAs have a broad reach and can drive a high volume of bookings. 

One supplier working with Rocket Travel by Agoda saw drastic changes when offering competitive wholesale rates through our network – a sales jump of +56% in just two months. By the end of the ninth month, when the wholesale rates were adjusted again, sales jumped another 44%. 

By offering wholesale rates, suppliers can fill more rooms, seats, or rental cars, leading to increased sales and revenue. This exposure can also lead to more direct bookings in the future as customers become familiar with the supplier's brand.
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Reach high-value customers

Depending on the OTA suppliers work with, they may have better access to diverse markets and customer segments that they might not reach on their own. Providing wholesale rates can help suppliers penetrate new markets and attract a wider audience.

For suppliers that want to target high-value customers specifically, finding a partner that can implement dynamic pricing strategies to target different segments of customers can further optimize revenue management.
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Generate more revenue without additional lift 

Suppliers can leverage the marketing efforts and platforms of their partners, indirectly benefiting from their investment in advertising, SEO, and customer acquisition. Additionally, suppliers can save money by not taking on the overhead costs of managing a distribution network directly. 
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Access data and insights

The partner suppliers work with should provide valuable data and insights about booking trends, customer preferences, and market demand to help make informed decisions about pricing, inventory management, and marketing strategies. 

While wholesale rates are beneficial, they also have the potential to be misused. 

Some suppliers and chains may struggle to see where their rates are being offered. And because of the lack of transparency, they also may be unable to decide who gets what kind of rate. This price manipulation and cost-cutting on inventory can decrease a supplier’s profits. 

When we work with suppliers, we make sure to provide full transparency and give our partners control on where their rates are listed with our partner suspension feature. Getting this kind of full visibility into where rates are being offered and what cost they are being offered at can help chains and suppliers counteract possible misuse. For this reason, it’s crucial to find a partner that not only provides transparency into where inventory is being listed and the rates, but also is a true collaborator in helping optimize bookings. 

The best thing to do to avoid rate misuse and abuse is finding the right partner. 

The right distribution partner will help fulfill all the benefits of providing wholesale rates in the first place – helping chains and suppliers receive more exposure, reach higher quality and additional customers, generate more revenue, and access data that can inform business strategy. 

When searching for the right partner to help extend reach, suppliers and chains should ask the following questions to not only protect their rates but maximize the partnership: 
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1. Partner control: Does the partner offer the opportunity to choose who to work with? 
2. Visibility and transparency: Is the partner open about where rates are being listed? Do they provide data and insights into how inventory is performing, and who is booking what properties?  
3. Targeted marketing: Does the partner offer opportunities to engage in targeted marketing efforts to extend reach? 
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When we work with suppliers to build a strategy around their wholesale rates, we prioritize helping suppliers reach high-value travelers and expand their reach. Ultimately, it comes down to building a collaborative partnership, where the suppliers trust us with their customers and their inventory. In turn, we provide transparency into where inventory is going and at what rates they are being offered, and then share back any insights on optimization rates to improve rate quality. 

Strategic distribution is one tool in a supplier’s arsenal. It’s important to understand what a fully collaborative partnership can provide to fully optimize the benefits of providing wholesale rates.

Learn more about how wholesale rates can drive performance.