{"id":2410,"date":"2021-12-22T21:56:37","date_gmt":"2021-12-22T20:56:37","guid":{"rendered":"https:\/\/www.revenueacrobats.com\/?p=2410"},"modified":"2021-12-22T21:57:25","modified_gmt":"2021-12-22T20:57:25","slug":"wholesalers-their-only-viable-revenue-model-blockchain-pleased-to-meet-you","status":"publish","type":"post","link":"https:\/\/www.revenueacrobats.com\/en\/wholesalers-their-only-viable-revenue-model-blockchain-pleased-to-meet-you\/","title":{"rendered":"Wholesalers: their only viable revenue model. Blockchain: pleased to meet you."},"content":{"rendered":"

In this co-written article with colleagues and friends\u00a0Alessandro Crotti<\/strong> <\/a>and guest and revenue queen Khristina Quigley<\/strong><\/a>, we\u2019re going to deep dive into the magic world of Wholesalers and Bedbanks. Whether you like it or not, they have radically changed the way we have been selling our rooms over the past years and our approach to online distribution as well. We believe there is no black and white in distribution but a fair mix of greys: you just need to find the right palette! So how do we make sure we are in control and do not end up being strings attached? Is there a real viable model that is healthy for all parties involved? Will blockchain turn the tables?<\/em><\/p>\n

Me, Alessandro and Khristina have very few filters, that is why I get on with both of them. Again it’s 100% us in all our opinions and this second part of this little distribution series, hope you enjoy it comment and share!\u00a0<\/em><\/p>\n

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Last quarter of 2017, I was consulting a GM of a hotel in Milan and he told me that the day before he got a business meeting with the representative of a big wholesaler he had been having a contract with for many years already (I won\u2019t make names this time), as they needed to talk about extending the contract for the new year.<\/span><\/p>\n

Immediately, the representative showed him the numbers: I don\u2019t quite recall the exact digit, but approximately it was 2000 room nights that the wholesaler generated for the hotel, year to date.<\/span><\/p>\n

2000 RNs for a hotel with less than 140 rooms in total is quite something indeed. And that was of course the starting (sticky) point used by the representative to discuss contracts, renegotiation, allotments, rates, cheap rates, super cheap rates, naughty-cheap rates, disgustingly-cheap rates.<\/span><\/p>\n

Let\u2019s talk truth here: Hotels love volumes, we need to fill our rooms right? And the earlier we do it, the better we sleep (right again?). Hotels love to build that lovely bulk that makes them feel like they are in a safe place and they can always yield on the remaining rooms left to sell. (right again and again?)<\/span><\/p>\n

If that was so easy, we wouldn\u2019t be here writing this post.<\/span><\/p>\n

The complexity of distribution lies in the fact that volumes do not necessarily mean profit and that hidden costs and lost sales can be more hurtful than any distinguish-cheap rate negotiation.<\/span><\/p>\n

So before committing to any appealing volumes promise, question whether your generated room nights were incremental or shifted.<\/span><\/p>\n

Hotels should evaluate opportunities and risks based on their markets:<\/span><\/p>\n