How to Get Wholesale Hotel Rates: The Complete B2B Guide

Understanding Wholesale Hotel Rates: The Basics

Before we dive into how to access wholesale rates, let's clarify what we're actually talking about. "Wholesale" in the hotel industry has a specific meaning, and it's different from a "discount" or "sale price."

What Makes a Rate "Wholesale"?

Wholesale hotel rates are pricing tiers specifically designed for travel trade partners - travel agents, tour operators, DMCs, and corporate travel managers. These rates exist because hotels need distribution beyond their own websites, and trade partners bring guaranteed volume.

The key characteristics of wholesale rates:

• Not publicly advertised: You won't find these rates on Google or metasearch engines
• Requires verification: Hotels and aggregators verify you're a legitimate trade partner
• Net pricing: Usually quoted without commission - you add your own markup
• Consistent availability: Not flash sales that disappear - these are contracted rates
• Business terms: Often include flexible payment, credit facilities, and different cancellation policies

The Wholesale Pricing Hierarchy

Hotels work with multiple distribution tiers, each with different pricing. Understanding this hierarchy helps you identify where your rates fit:

The point here isn't that you need Category A rates to be profitable. Even entry-level wholesale gives you a 20-25% cost advantage over OTAs. The point is understanding where you are in the hierarchy and what it takes to move up.

Wholesale Rate Types: Net, Commissionable, and BAR

One of the most confusing aspects of wholesale hotel rates is the terminology. Different suppliers use different terms, and the same term can mean slightly different things depending on context. Here's the definitive breakdown:

Net Rates

Net rates are the wholesale standard in 2026. This is the actual cost the B2B platform or DMC pays the hotel, with zero commission built in. You add your own markup and keep the difference.

Why net rates work better:

• Pricing flexibility: You decide the markup based on market conditions, customer type, and competition
• Package building: Easier to bundle hotels + tours + transfers when you control the markup
• Margin clarity: You know exactly what you're paying and earning - no ambiguity
• Competitive pricing: You can undercut OTAs while still maintaining healthy margins

Commissionable Rates

The older model that some traditional wholesalers still use. The supplier gives you a rate that already includes their markup, and you earn a fixed commission (typically 10-15%) when the booking is confirmed and completed.

Downsides of commissionable rates:

• Fixed commission percentage - you can't adjust pricing
• Often paid after checkout, not at booking time
• More complicated accounting and reconciliation
• Less flexibility in competitive situations

BAR (Best Available Rate)

BAR is the best publicly available rate at any given moment - it fluctuates based on demand, seasonality, and occupancy. Some wholesale platforms offer "BAR minus X%" deals where you get a guaranteed discount off the current BAR. This is useful for dynamic pricing but harder to quote in advance.

Contracted Rates

Fixed rates negotiated directly with hotels for specific periods, usually in exchange for guaranteed volume. These are typically the best rates but require commitment. Common in tour operator and MICE business.

Rate Type Comparison

Four Channels for Accessing Wholesale Hotel Rates

There are four main ways travel agents can access wholesale hotel rates. Each has different strengths, requirements, and trade-offs. Most successful agencies use a combination of these channels.

For most travel agents, the practical approach is to start with a B2B portal like DMC Quote for immediate access and broad coverage, then add direct relationships with hotels or DMCs in your high-volume destinations as your business grows.

B2B Travel Portals: The Easiest Path to Wholesale Rates

B2B travel portals are the most accessible entry point for wholesale hotel rates. These platforms aggregate hotel inventory from multiple sources - direct contracts, aggregators, DMC partnerships - and present it in a single booking interface.

How B2B Portals Work

The B2B portal acts as an intermediary. Hotels contract rates with the platform (or the platform connects to aggregator APIs), and travel agents get verified access to book at net rates. The platform handles:

• Supplier contracting and rate loading
• Real-time availability checks
• Booking confirmations and vouchers
• Payment processing and reconciliation
• Customer service and dispute resolution

What to Look for in a B2B Portal

Not all B2B portals are created equal. Here's what separates good platforms from mediocre ones:

Major B2B Platforms for Hotel Booking

Here's a comparison of the major platforms serving travel agents in Asia Pacific:

DMC Contracts: Destination-Specific Wholesale Access

Destination Management Companies (DMCs) are local operators with direct hotel relationships in specific destinations. Working with DMCs gives you access to rates that may be better than what aggregators offer - especially for popular properties where the DMC has volume commitments.

When DMC Contracts Make Sense

DMCs aren't for everyone. They make the most sense when:

• You specialize in specific destinations: If 60% of your bookings are Singapore/Malaysia, a DMC relationship there is valuable
• You need local expertise: DMCs provide ground handling, local knowledge, and emergency support
• You're building packages: DMCs bundle hotels + tours + transfers with package pricing
• You handle groups: DMCs often have group allotments that aggregators don't access

How to Find and Evaluate DMCs

Not all DMCs are equal. Here's how to identify good partners:

1. Check direct hotel contracts: Ask if they have contracted rates with hotels vs. just reselling aggregator inventory
2. Verify local presence: Do they have staff on the ground? An office address? Emergency contact numbers?
3. Test responsiveness: Send a test inquiry - good DMCs respond within 24 hours
4. Ask for references: Request contact info for other agents they work with
5. Compare rates: Request quotes for specific hotels and compare to your existing suppliers

DMC Rate Categories

DMCs typically use tiered pricing based on your volume and relationship:

Hotel Aggregators: Global Inventory at Wholesale Rates

Hotel aggregators are the backbone of the B2B travel industry. Companies like Hotelbeds, DIDA Travel, WebBeds (formerly Tourico + GTA), and Bonotel aggregate contracts from thousands of hotels worldwide and distribute rates to travel agencies.

How Aggregators Work

Aggregators negotiate bulk contracts with hotels globally. They commit to volume in exchange for competitive net rates. They then distribute these rates to travel agents via:

• Direct B2B portals: Their own agent booking websites
• API integration: Connecting to agency booking systems
• White-label solutions: Powering other B2B platforms (like DMC Quote)

Major Hotel Aggregators

Aggregator vs. Direct DMC Rates

A common question: "Should I book through an aggregator or go direct to a DMC?" The answer depends on your situation:

Direct Hotel Contracts: The Best Rates (If You Have Volume)

If you're booking significant volume at specific hotels - say, 100+ room nights per year at a particular property - you might get better rates by contracting directly with the hotel's sales team.

When Direct Contracts Make Sense

• You have predictable volume: Consistent monthly bookings, not sporadic one-offs
• You specialize in specific hotels: You actively recommend these properties to clients
• You handle groups or MICE: Group rates are often negotiated directly
• You want relationship benefits: Upgrades, amenities, commission on F&B

How to Approach Hotels for Direct Rates

1. Identify your target properties: Look at your booking history - which hotels do you book most?
2. Contact the hotel sales team: Not reservations. Look for "Travel Trade Sales" or "Wholesale Sales" contacts on the hotel website.
3. Prepare your pitch: Include your company profile, current volume (be realistic), and growth projections
4. Request a rate proposal: Ask for net rates for the next contract period (usually 12 months)
5. Negotiate terms: Payment terms, cancellation policies, group rates, commission on ancillary

What Hotels Expect from Contracted Partners

Registration Process: Getting Approved for Wholesale Rates

Regardless of which channel you choose, you'll need to complete a verification process to access wholesale hotel rates. Here's exactly what to expect.

Required Documentation

Most B2B platforms and DMCs require these documents:

Step-by-Step Registration with DMC Quote

Common Registration Mistakes to Avoid

• Using personal email: Applications from Gmail/Yahoo addresses take longer to verify. Use your company domain.
• Blurry document scans: Unreadable documents cause delays. Use 300 DPI minimum.
• Expired licenses: Check expiration dates before uploading. Renew first if needed.
• Mismatched information: Company name must match exactly between form and documents.
• Overstating volume: Be realistic about your booking projections. Inflated numbers hurt credibility.

Markup Strategies: Turning Wholesale Rates into Profit

Getting wholesale rates is only half the equation. The other half is pricing your hotels correctly to maximize profit while remaining competitive. This is where many agents struggle.

Markup vs. Margin: Understanding the Difference

These terms are often confused, but they calculate differently:

Recommended Markup Ranges

Pricing Strategy by Customer Type

• Price-sensitive travelers: Lower markup (12-15%), compete on price. Works for budget hotels and price-comparison customers.
• Service-oriented travelers: Standard markup (18-22%), compete on service. Works when you're adding value beyond just booking.
• Luxury travelers: Higher markup (22-30%), compete on experience. Service expectations justify premium pricing.
• Corporate travelers: Consistent markup (15-20%), compete on reliability. Corporate accounts value consistency over bargains.

The OTA Price Check Strategy

Here's a practical approach many agents use:

1. Check the OTA price: Look at Booking.com/Expedia for the same hotel and dates
2. Calculate your maximum sell price: OTA price minus 5-10% (you want to undercut)
3. Calculate your margin: (Max sell - wholesale cost) / Max sell
4. If margin is healthy (15%+): Price at max sell
5. If margin is thin (<10%): Either absorb lower margin or find alternative hotel

Optimizing Your Rates: Moving Up the Wholesale Ladder

Once you're in the system, the goal is to improve your rates over time. Here's how successful agents climb from Category C to Category A pricing.

Volume-Based Improvements

The most straightforward path to better rates is booking more. DMCs and platforms review accounts quarterly based on:

• Room nights: Total nights booked across all hotels
• Booking value: Total SGD value of confirmed bookings
• Booking frequency: Consistent monthly activity vs. sporadic bursts
• Cancellation rate: Percentage of bookings cancelled

Upgrade Thresholds (Typical)

Negotiation Tactics for Better Rates

1. Request a formal review: After 6 months of consistent bookings, email your account manager with booking data and request a category upgrade review.
2. Commit to volume: Offer to commit to a minimum room nights for the next quarter in exchange for a rate reduction.
3. Negotiate destination-specific rates: If you focus on Singapore hotels, ask for special rates on your top 10 most-booked properties.
4. Bundle for savings: Book hotels + tours + transfers together and request package pricing (typically 3-5% additional discount).
5. Time your requests: Low season (May-June, Sept-Oct for Asia) is when suppliers are more flexible on rates.

Diversifying Your Supplier Portfolio

Don't rely on a single source for wholesale rates. Smart agents maintain accounts with multiple suppliers:

• Primary supplier (60-70% of bookings): Build volume for rate upgrades
• Secondary supplier (20-30% of bookings): Compare rates, backup inventory
• Specialist suppliers (10% of bookings): Destination-specific DMCs for best rates in key markets

Common Mistakes That Cost You Money

After working with thousands of travel agents, I've seen the same mistakes repeatedly. Here's what to avoid:

1. Not Comparing Rates Across Platforms

Different platforms have different contracts with the same hotel. A 5-star property might cost SGD 280/night on Platform A and SGD 260/night on Platform B. That's SGD 20/night you're leaving on the table. Always compare for high-value bookings.

2. Underpricing to Win Business

Competing on price alone is a race to the bottom. If your only value proposition is "cheaper than Booking.com," you'll struggle. Clients who only care about price will eventually book direct anyway. Focus on service, expertise, and packages that justify your markup.

3. Ignoring Cancellation Policies

Wholesale bookings often have stricter cancellation terms than OTAs. Always check the policy before confirming and communicate clearly to clients. A single cancelled non-refundable booking can wipe out margins from 5+ successful bookings.

4. Not Reading the Fine Print

Room rates may or may not include:

• Breakfast (common in Asia, less common elsewhere)
• Taxes and service charges
• Tourism levies
• Resort fees

Always verify what's included before quoting to clients. Surprise charges at checkout damage your reputation.

5. Neglecting Supplier Relationships

Wholesale travel is a relationship business. Agents who maintain regular contact with their account managers, provide feedback, and pay invoices promptly get:

• Faster rate upgrades
• Priority during sold-out periods
• Access to special deals before general release
• Flexibility when issues arise

6. Using Only One Supplier

Single-source dependency is risky. If that platform has technical issues, raises prices, or changes terms, you're stuck. Maintain at least 2-3 active supplier accounts.

Frequently Asked Questions