Hotels of the past faced serious challenges in driving occupancy, with static and siloed inventories spread across a number of third-party partners. A solution to this was to use wholesalers, whose objective was to give travel agents competitive B2B inventory and provide reach all over the world to facilitate bookings.

However, things have changed since the 60s, and the technology that solved these problems and opened up distribution has caused a number of challenges of its own. Third parties have now been able to expand the ways in which they distribute room rates and inventory, causing serious rate leakage issues when uncontracted organisations greatly undercut the hotel’s direct rate.

Today, hoteliers need to get smart, and make a greater effort to determine the incremental value that each distributor, channel and market segment brings to their hotel.