Hotelbeds Tackles Rate Integrity Challenge for Hotel Partners

Hotelbeds provides an update on the 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 automated technologies. 

Using data analytics, tracking travel sellers’ flows and monitoring on a regular basis, Hotelbeds is able to 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.

Carlos Muñoz, Managing Director at Hotelbeds, said that the company fully recognizes the importance of the rate integrity challenge that the industry is facing and has been consulting with hotel partners in private to quietly introduce change.