Last Tuesday, a Bangalore agent called us about a Maldives resort booking. She'd been getting quotes from Hotelbeds for years and thought those were wholesale rates. When we sent her our direct DMC rate for the same resort, she saved $280 per room for a 5-night stay. That's $1,680 on a single booking for 6 rooms.
Hotelbeds is convenient, but convenience sometimes costs money.
What Hotelbeds Actually Provides
Hotelbeds is a hotel aggregator—they contract with 180,000+ hotels globally and resell that inventory to travel agents at marked-up wholesale rates. Here's what you get:
- Massive inventory: 180,000+ hotels across 200+ countries
- One platform: Single login for global bookings
- Instant confirmation: Most bookings confirm within seconds
- Payment terms: Credit available for established agents
- API integration: Connect to your booking engine
The platform is professional and reliable. But "wholesale" doesn't always mean "cheapest." Hotelbeds is a middleman—they buy from hotels/DMCs and mark up before selling to you.
The Markup Reality
Hotelbeds typically marks up hotel rates 12-20% above what they pay. That's their business model. For a hotel room costing Hotelbeds $100, you might pay $115-120. That markup cuts into your margins.
When you book the same room through a direct DMC like DMCQuote, you're buying at true net rates without the middleman markup. For Singapore hotels or Thailand resorts, that difference compounds quickly.
How Direct DMC Booking Works
DMCs (Destination Management Companies) contract directly with hotels in specific regions. When you book through a regional DMC, you're getting rates closer to what hotels actually charge. Here's what that means:
Better Net Rates
DMCs negotiate directly with hotels in their region. No aggregator middleman. For a $100 hotel room, you might pay $95-100 from a DMC vs $115-120 from Hotelbeds. Over 100 room nights, that's $1,500-2,500 in additional margin.
Local Expertise
Regional DMCs know their markets intimately. They can suggest alternative hotels, optimize itineraries, and handle issues faster than a global aggregator. For Dubai packages or Hong Kong hotel bookings, local knowledge matters.
Relationship Benefits
Working directly with DMCs builds relationships. Need a late check-out? Room upgrade? Special meal request? DMCs can negotiate with hotels directly. Hotelbeds can't—they're automated systems with limited flexibility.
Real-World Rate Comparison
We compared identical bookings across Hotelbeds and direct DMC booking. Here's what we found:
Maldives 5-Star Resort (5 Nights, 2 Adults)
- Hotelbeds rate: $2,400 net per room
- Direct DMC rate: $2,120 net per room
- Savings: $280 per booking (11.7% cheaper through DMC)
Singapore 4-Star Hotel (3 Nights)
- Hotelbeds rate: $540 net per room
- Direct DMC rate: $480 net per room
- Savings: $60 per booking (11.1% cheaper through DMC)
Thailand Boutique Resort (7 Nights)
- Hotelbeds rate: $1,260 net per room
- Direct DMC rate: $1,050 net per room
- Savings: $210 per booking (16.7% cheaper through DMC)
For an agency booking 50 rooms monthly in Asia-Pacific, direct DMC booking saves $3,000-6,000 monthly compared to Hotelbeds.
Where Hotelbeds Still Makes Sense
Hotelbeds isn't a bad choice—it's just not always the cheapest. Here's when it works well:
- Multi-destination packages: If you need hotels in 5 countries, one Hotelbeds booking beats managing 5 DMC relationships
- Obscure destinations: For secondary cities where regional DMCs don't have strong contracts
- Last-minute bookings: Hotelbeds' instant confirmation and massive inventory helps with urgent requests
- API integration: If you're running an automated booking engine, Hotelbeds' API is robust
- Credit terms: Hotelbeds offers 30-day credit for established agents, which helps cash flow
But for primary markets like Malaysia, Sri Lanka, or European cities where you book regularly, direct DMC relationships deliver better margins.
What Direct DMCs Do Better
Regional Rate Advantages
DMCs negotiate bulk contracts with hotels in their region. A Singapore-based DMC can offer better Singapore hotel rates than Hotelbeds because they're local and do volume. Same logic applies to specialist DMCs for Dubai, Thailand, or Europe.
Customization Flexibility
Need to bundle hotels with airport transfers, city tours, or special experiences? DMCs can package everything in one quotation. Hotelbeds is hotels only. For comprehensive packages, DMCs save you from managing multiple suppliers.
On-Ground Support
When something goes wrong at 2am in Bangkok—overbooking, special request, emergency change—a local DMC can call the hotel directly. Hotelbeds support can email the hotel, but they're not on-ground. Response time matters in crisis situations.
Payment Flexibility
Established DMC relationships can offer flexible payment terms—sometimes 45-60 days for repeat clients. Hotelbeds is typically 30 days max. That extra flexibility helps cash flow, especially for larger packages.
The Hybrid Strategy That Works
The smartest agents don't choose one over the other—they use both strategically:
- Primary markets: Use direct DMCs for destinations where you book frequently (typically 70-80% of volume)
- Backup inventory: Keep Hotelbeds access for obscure destinations or multi-country packages
- Compare rates: For high-value bookings, always pull rates from both sources before confirming
- Build DMC relationships: Invest time in 3-5 DMC partnerships covering your core destinations
One Mumbai agency we work with books 75% through regional DMCs (including DMCQuote for Southeast Asia) and 25% through Hotelbeds for everything else. Their margins improved from 15% to 22% after implementing this strategy.
Common Misconceptions
"Hotelbeds Has More Hotels"
Hotelbeds has 180,000 properties, but regional DMCs aggregate multiple sources. DMCQuote pulls from Dida, direct contracts, and regional partners—often 400,000+ properties. It's not about quantity, it's about rate quality for your key markets.
"Hotelbeds Is Faster"
Hotelbeds confirmations are instant, but so are most DMC confirmations now. Modern DMC platforms like DMCQuote offer instant confirmation on 85-90% of inventory. The speed advantage isn't significant anymore.
"Managing Multiple DMCs Is Too Complex"
You don't need 20 DMC relationships. Identify your top 5 destinations and find strong DMC partners for each. For most Asia-focused agents, that's 2-3 DMC relationships covering 80% of bookings. The 15-20% margin improvement justifies the extra effort.
Making the Transition
If you're currently relying entirely on Hotelbeds and want to add direct DMC booking, here's how:
- Analyze booking data: Identify your top 3-5 destination markets by volume
- Find specialist DMCs: Research DMCs with strong presence in those markets
- Run parallel quotes: For 20 bookings, get rates from both Hotelbeds and DMC, compare net rates
- Calculate true margins: Factor in payment terms, credit costs, and service value—not just rate differences
- Start with one DMC: Don't switch everything at once. Begin with one strong DMC relationship and expand gradually
Most agencies see positive ROI within 30-45 days when they shift 40-50% of volume to direct DMCs for primary markets.
What About Service Quality?
Hotelbeds has professional support, but it's generalized. When you call Hotelbeds about a Bangkok hotel issue, you're talking to a support agent in Spain or Philippines who emails the property. When you call a Bangkok-based DMC, you're talking to someone who can drive to the hotel if needed.
Service quality matters most when things go wrong. Hotelbeds is reliable for routine bookings, but direct DMCs excel at problem-solving because they have local presence and relationships.
Bottom Line
Hotelbeds works well as a backup inventory source and for multi-destination packages where convenience matters. But for your core markets—destinations where you book 5+ rooms monthly—direct DMC relationships deliver better net rates, local expertise, and higher margins.
The difference is real money. An agency booking 40 rooms monthly in Southeast Asia can save $2,000-4,000 monthly by using direct DMC rates instead of Hotelbeds for primary markets. Over a year, that's $24,000-48,000 in additional profit.
Don't assume Hotelbeds equals best wholesale. Run your own comparison. Pull rates for your next 15 bookings from both Hotelbeds and a regional DMC like DMCQuote. Calculate true net costs. The numbers will show you where to focus your booking volume.
