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Nathan Kellar, Senior Director Distribution US/CAN + Global Wholesale, Marriott International*, HSMAI Global Distribution Advisory Board Member
In a recent Global Distribution Advisory Board (GDAB) discussion, we met to address challenges in segmentation blending and profitability that naturally occur within the wholesale segment as many traditional lines are being blurred. Many new entrants in the B2B and White Label space have attempted to solve some of these challenges by introducing transparency and control to their hotel suppliers.
Historically, bed banks and redistributors operated with limited transparency, often providing only aggregated performance data to suppliers, resulting in significant challenges. This lack of granular information hindered suppliers from making informed decisions about their distribution strategies.
However, the rise of evolved B2B platforms since 2019 have been prioritizing transparency and control, offering improved insights into downstream networks. “There are now operators out there that have identified this challenge and are offering full transparency and control as their primary value propositions,” highlighted one GDAB member
When one GDAB member asked what the ideal amount of transparency everyone would like to see, some advocated for sufficient visibility without compromising individual guest information. “We want more insight to understand the downstream network while protecting individual guest data,” a participant emphasized.
Participants discussed how AI can align distribution approaches with supplier strategies, enabling reactive decision-making based on real-time data. “AI can help manage what’s going on in the downstream network, aligning with the supplier’s strategic guidelines,” explained another GDAB participant.
We also considered strategic partnerships, with emphasis on aligning distributor objectives with those of suppliers. One member shared, “The distributors that genuinely understand that they must align closely with their supply partners’ strategies, rather than focusing solely on immediate grains or growth, are more likely to achieve long-term success in the industry. That approach is representative of a true strategic partnership.”
We looked ahead as well, and predictions included a reduction in reliance on traditional intermediaries and a move towards more direct distribution channels. “As technology broadens and becomes more commoditized, the ability to bring in distribution at a lower cost increase,” one member forecasted.
Questions for your team:
- Is transparency the new expectation within the segment now that it’s been introduced?
- Can we ever go back?
- Does transparency help to increase trust and improve strategic alignment?
- What benefit does this provide strategically and what hurdles may exist today in it becoming standard?
Read More:
- The Critical Role of Independent Distribution in the U.S. Travel Industry
- The rise of white label solutions in the travel and gambling industry
- Agoda Eases Hotel Distribution Pain-Points with Wholesale Distribution Platform and Solutions
* This article reflects the collective views of the individual HSMAI Global Distribution Advisory Board members, and not the views of the author alone or Marriott International.