How to Book Hotels at Wholesale Rates

Your complete guide to accessing B2B hotel rates, understanding the wholesale booking process, and maximizing your margins as a travel professional

15 min read
Updated Jan 2025
For Travel Agents

I remember my first week as a travel agent back in 2012. My manager handed me login credentials to our B2B portal and said, "You'll figure it out." I didn't. I spent three days convinced I was doing something wrong because the rates were so much lower than what I saw on booking.com. Turns out, that's exactly the point.

If you're new to the wholesale side of hotel bookings, you're probably experiencing that same confusion right now. The good news? Once you understand how this system works, you'll wonder how you ever operated without it.

Understanding Wholesale Hotel Rates

Let's cut through the jargon. The hotel distribution chain has more layers than most people realize, and each layer affects the price you see on your screen.

The Rate Hierarchy: Net, Gross, and Retail

Here's what actually happens when a hotel room gets booked:

Real-World Example: Marina Bay Sands, Singapore

Hotel's Base Cost (internal) SGD 280
Net Rate (what you pay as agent) SGD 350
Your Markup (15% in this case) + SGD 52.50
Client Pays SGD 402.50

Your margin: SGD 52.50 per night. Book a 4-night stay for a family? That's SGD 210 in your pocket.

Net Rate is what you actually pay the supplier. This is your cost price. No commission, no markup included. It's called "net" because it's the net amount the wholesaler needs to cover their costs and make their margin.

Gross Rate includes a built-in commission that you earn by selling at that price. Less common these days, but you'll still see it with some hotel chains. For example, a gross rate of SGD 400 might include 10% commission, meaning you pay SGD 400 but earn back SGD 40 after the stay is completed.

Retail Rate is what the public sees on OTAs like Booking.com or Expedia. This is your benchmark for how much value you're offering clients, but never your actual selling price.

Pro Insight

Most B2B portals show you both the net rate AND a "market price" or "RRP" (recommended retail price). That RRP is usually inflated by 25-40% above the net rate. Don't feel obligated to sell at that price. Your markup is your business decision. I've seen successful agents operate on everything from 8% margins on volume bookings to 30% margins on luxury properties where service differentiation matters more than price.

Why Wholesalers Can Offer Better Rates

It's not magic, it's volume and commitment. Here's the reality of how wholesalers negotiate:

1. Bulk Allocation: Wholesalers commit to selling X number of room nights per year. A mid-sized DMC might commit to 500 room nights annually at a single property. That's guaranteed revenue for the hotel, so they offer preferential rates.

2. Pre-purchased Inventory: Some wholesalers actually buy room blocks months in advance at fixed rates. This is why you'll sometimes see amazing deals during peak season—the wholesaler locked in low-season pricing six months ago and is passing some of that saving to you.

3. Lower Distribution Costs: When you book through a B2B portal, the hotel saves on OTA commissions (typically 15-25%) and credit card processing fees. They can afford to give you a better net rate because you're costing them less to acquire.

4. Relationship Leverage: Established wholesalers have contracts dating back years. They've proven themselves reliable, they pay on time, and hotels value that relationship. New agents won't get these rates immediately—you'll work with wholesalers who already have them.

22-35% Average savings on wholesale rates vs. public retail prices in Southeast Asian markets

Understanding Commissionable vs. Non-Commissionable

This trips up newcomers constantly. Pay attention:

Non-commissionable (Net Rate): You mark it up, you keep the markup. Simple. This is the standard in B2B portals. You pay SGD 350, sell for SGD 400, pocket SGD 50. The transaction is done.

Commissionable (Gross Rate): You sell at the stated price, and the commission comes back to you later—usually 30-60 days after guest checkout. You'll see this with hotel direct bookings and some GDS rates. The cash flow implication is significant: you're fronting the full amount and waiting weeks for your margin to return.

Most agents prefer net rates because the cash flow is cleaner and you control the margin. But commissionable rates can sometimes be lower, especially with hotel chains that refuse to publish net rates to maintain pricing consistency.

Step-by-Step Booking Process

Right, let's get practical. Here's exactly how you book a hotel through a B2B portal, with the insider details they don't put in the training manuals.

1

Create Your Agent Account

This isn't like signing up for Netflix. You'll need to provide:

  • Business registration documents (some portals verify you're a legitimate travel business)
  • IATA/TIDS number if you have one (opens better rate categories)
  • Tax identification (for invoicing purposes)
  • Business bank account details (for credit limit setup)

Most portals manually verify new accounts. Expect 24-48 hours before you're approved. Some require a reference from an existing agent or supplier—this is where networking matters.

Credit Terms Reality Check

New agents almost always start on "pay now" terms. You'll need to prepay bookings via credit card or bank transfer. After you've proven yourself with 10-20 successful bookings, you can request credit terms. I got my first 7-day credit limit after three months of consistent bookings. Now I operate on 30-day terms with my main suppliers. It's a trust game—play it well.

2

Search for Hotels

The search interface looks straightforward: destination, dates, guests. But here's what actually impacts your results:

  • Guest nationality matters. Many hotels offer different rates based on passport country. Always select accurately—showing a Singaporean rate to an Indonesian client will cause issues at check-in.
  • Room occupancy must be precise. Search for "2 adults" when you need "2 adults + 1 child" and you'll get rates that don't accommodate the child. Some properties charge hefty supplements for incorrect pax info discovered at check-in.
  • Date flexibility = better rates. Many portals show a calendar view with pricing. Shifting by a single day can sometimes save 20-30%, especially around weekends or public holidays.

Search Filter Secrets

Star rating filters are inconsistent. A 4-star hotel in Bangkok isn't the same standard as a 4-star in Singapore. Use guest reviews as your actual quality indicator. I filter by 4+ stars, then sort by review score, then check the last 20 reviews manually. Time-consuming? Yes. Worth it to avoid sending clients to a dump? Absolutely.

3

Compare Rates and Cancellation Policies

This is where agents either make money or create disasters. Every rate has three critical components:

a) The Net Rate Per Night: Multiply by number of nights, add taxes (if not included), that's your cost.

b) Meal Plan Inclusion:

  • RO (Room Only): No meals. Client eats elsewhere.
  • BB (Bed & Breakfast): Breakfast included. Most common in city hotels.
  • HB (Half Board): Breakfast + dinner. Rare in city hotels, common in resorts.
  • FB (Full Board): All three meals. Resort properties.
  • AI (All Inclusive): Meals + drinks + activities. Beach resorts mainly.

c) Cancellation Policy: This is the make-or-break detail.

Cancellation Policy Gotcha

I learned this the expensive way. A client booked a "great rate" at SGD 180/night for 5 nights in Bali. Two weeks before travel, her mother fell ill. She needed to cancel. The policy? Non-refundable from booking date. I had to refund her SGD 900 out of my own pocket to maintain the relationship. My cost: SGD 850 (the net rate I'd paid). My lesson: SGD 850.

Always explain cancellation terms clearly to clients. Better yet, offer two options: refundable at SGD +50/night and non-refundable at the lower rate. Let them choose their risk level. Most pick non-refundable. Some pick peace of mind. Nobody gets surprised.

Common Cancellation Policy Types:

  • Free cancellation until X days before: Usually 3-7 days. After that, full charge or 1-night penalty.
  • Non-refundable: Pay now, no changes, no refunds. 15-30% cheaper but risky.
  • Partially refundable: Cancel with 50% penalty anytime, or free cancel until 14 days before. Common with resort properties.
  • Flexible: Cancel until 24-48 hours before, full refund. Slightly higher rates but worth it for uncertain clients.
4

Add Your Markup

Right, the money part. How much should you mark up?

Market Reality Check (Singapore Market, 2025):

  • Budget properties (3-star): 8-12% markup is competitive
  • Mid-range (4-star): 12-18% is standard
  • Luxury (5-star): 18-25% if you're providing concierge service
  • Resort properties: 20-30% because clients compare less (remote locations)

But here's the nuance: your markup isn't just about the property category. It's about your value-add.

Markup Strategy Example

Scenario: Client wants 3 nights at Shangri-La Singapore. Net rate is SGD 420/night.

Low-service option: You send rates, they book, you confirm. Add 10%. Client pays SGD 462/night. Your margin: SGD 126 total.

High-service option: You call the hotel concierge, arrange airport pickup, confirm late checkout, book their anniversary dinner, send a welcome amenity to the room. Add 22%. Client pays SGD 512/night. Your margin: SGD 276 total.

Which client is happier? Which client refers their friends? Premium margins require premium service. If you're competing on price alone, you're competing with Agoda. You'll lose.

5

Confirm the Booking

You've checked the rates, explained policies to your client, they've agreed to pay. Now you actually book. Here's the process:

Guest Details Required:

  • Full name (exactly as per passport for international bookings)
  • Contact number (hotel will call if there's an issue)
  • Email address (some hotels send digital keys now)
  • Special requests (early check-in, high floor, twin beds vs. king, etc.)

Payment Processing: Depending on your credit terms, you'll either pay immediately or the amount goes on your credit account.

Confirmation Time: "Instant confirmation" properties confirm within minutes. "On request" properties can take 4-24 hours (common with boutique hotels that manually manage inventory).

On Request Bookings Are Risky

Never tell a client "it's confirmed" until you have a confirmation number. I once had a wedding couple arrive at a Maldives resort to find no booking on file. The property had rejected my "on request" booking 12 hours after I submitted it, but I'd missed the email. The scramble to find alternative accommodation at peak season was... not fun. Always wait for written confirmation before making client promises.

6

Generate and Send Vouchers

Once confirmed, the B2B portal generates a voucher. This is your client's proof of booking. What should be on it:

  • Booking reference number
  • Hotel name, address, contact details
  • Guest names
  • Check-in / check-out dates
  • Room type and meal plan
  • Special requests confirmation
  • Your agency contact details (so they call you if issues arise, not the hotel directly)

Send this to your client as PDF. Also advise them to have a printed copy at check-in (some hotels, especially in smaller cities, still prefer paper to phone screens).

Post-Booking Follow-Up

I send a WhatsApp message to every client 48 hours before check-in: "Hi [Name], your Shangri-La booking is confirmed for [date]. Check-in after 3pm, early check-in subject to availability. Need anything else arranged?" This simple message has saved me from so many issues—clients realizing they put the wrong dates, forgotten special requests, changes they hadn't communicated. Fix issues 48 hours before and you're a hero. Discover issues at check-in and you're incompetent.

Pro Tips for Maximizing Your Margins

Alright, you know the process. Now let's talk about how the experienced agents actually make money in this business.

1. Non-Refundable vs. Flexible: The Strategic Choice

Non-refundable rates are typically 15-30% cheaper than flexible rates. The math is tempting. But here's the strategic thinking:

Book non-refundable when:

  • Client is 100% committed (already has flights booked)
  • Booking is less than 30 days from check-in (less time for life to interfere)
  • Client explicitly accepts the risk (get this in writing via email confirmation)
  • Client has travel insurance that covers cancellations (verify this)

Book flexible when:

  • Booking is 3+ months in advance (lots of time for plans to change)
  • Client is elderly or traveling with young children (higher risk of medical issues)
  • Client seems indecisive or "browsing" rather than committed
  • You value the relationship more than the immediate margin (repeat clients are worth more long-term)

Real Calculation

Property: 4-star Phuket resort, 7 nights
Non-refundable rate: SGD 165/night = SGD 1,155 total
Flexible rate: SGD 195/night = SGD 1,365 total
Difference: SGD 210

Your math: If I book non-refundable, I can mark up 18% (SGD 1,363 client price) and still beat the flexible rate. Margin: SGD 208.

Better math: If I book flexible at SGD 1,365 and mark up 15% (SGD 1,570 client price), I make SGD 205 margin AND the client can cancel. They value peace of mind. You build trust. They book with you again.

Best outcome: Client doesn't cancel. You make nearly the same margin. Client is happy because they had flexibility they didn't need to use. They tell their friends about you.

2. Group Booking Strategies

Groups of 5+ rooms unlock better rates with most hotels. But here's what they don't tell you:

The 10-room threshold is where real negotiation starts. At 10+ rooms, you can often negotiate directly with hotel sales teams for rates below even the B2B portal net rates. I'm talking 15-20% additional discounts for confirmed groups.

How to approach it:

  1. Search the B2B portal to get baseline net rates
  2. Email the hotel's group sales department directly (find contact on hotel website)
  3. Reference the B2B rate and ask for a group discount quote
  4. Include dates, room count, meal plan requirements, any meeting space needs
  5. Negotiate. They'll usually offer 10% off first quote. Push for 15-20%.

Group Booking Power Move

When negotiating groups, always mention "potential for repeat business." Hotels value consistent group bookings. If you can hint at monthly or quarterly repeat potential (corporate groups, tour series, etc.), you'll get better rates. I negotiated a 25% discount for a corporate client's monthly training groups by committing to 12 months of bookings upfront. The hotel locked in rates for the year. My client got budget certainty. I got a retainer relationship.

3. Seasonal Rate Variations & Booking Windows

Hotel pricing follows predictable patterns. Learn them, profit from them.

Low Season (massive opportunity): Most agents ignore low season because "nobody books then." Wrong. Low season has different customers: retirees, remote workers, budget travelers, locals doing staycations. The margins are beautiful because net rates drop 40-50% but clients don't expect equivalent price cuts.

Low Season Margin Example

Bali Villa - High Season (July-August):
Net rate: SGD 450/night
Market price: SGD 650/night
Your selling price: SGD 580 (15% margin = SGD 68/night)

Bali Villa - Low Season (November-March):
Net rate: SGD 220/night (51% lower)
Market price: SGD 380/night (42% lower)
Your selling price: SGD 340 (35% margin = SGD 97/night)

You make MORE per night in low season by understanding that value perception isn't linear with cost.

Shoulder Season (the sweet spot): Weeks immediately before and after peak season. Weather is still good, crowds are lighter, rates are 20-30% lower. This is what I recommend to 70% of my clients. Better experience, better value, better margins for me.

Last-Minute Deals (risky but profitable): Hotels with empty inventory 7-14 days before dates will slash rates. But this only works if you have flexibility. I have a WhatsApp group of 50 clients who've told me "we can travel on 2 weeks notice if the deal is incredible." When I see a 5-star property at 60% off, I send a message. Usually book 3-5 rooms. Quick margin on volume.

4. Multi-Property Packages

This is where you evolve from booking agent to travel designer. Don't just book a hotel—create an experience.

Example: Client wants 10 days in Thailand. Instead of a single hotel booking:

  • 3 nights Bangkok (city hotel) - SGD 140/night net
  • 4 nights Chiang Mai (boutique property) - SGD 95/night net
  • 3 nights Krabi (beach resort) - SGD 180/night net

Total net cost: SGD 1,340
Package it as "10-Day Thailand Discovery": SGD 1,950
Your margin: SGD 610 (45.5%)

Clients love the curation. You love the margin. The individual hotels wouldn't give you better rates, but the perceived value of a packaged itinerary justifies higher markup.

Common Mistakes to Avoid

Let's talk about the mistakes that cost agents money, reputation, or both. These are real stories from my 13 years in the industry.

1. The Name Spelling Disaster

Real Case

Agent booked "John Smith" for a Bali resort. Client's passport said "Jonathan Smith." The resort's policy was strict: no name changes allowed on non-refundable bookings (their risk management for fraud). Client arrived, hotel refused check-in. Agent had to book a new room at walk-in rates (SGD 380/night vs. the SGD 165 net rate they'd paid). Lost money: SGD 1,075 for 5 nights. Lost client: permanently.

Lesson: Always request passport copy before confirming international bookings. Match names exactly, character for character.

2. The Credit Terms Trap

You get approved for 30-day credit terms. Fantastic! You book SGD 15,000 worth of hotels in month one. You collect from clients and use that cash for operating expenses. Month two, the invoice comes due. You don't have SGD 15,000 liquid because you've spent it. You're now scrambling to pay suppliers while booking new clients to generate cash flow.

This is how agencies collapse. Credit terms aren't free money—they're delayed payment obligations. I maintain a separate bank account for supplier payments. Every client payment goes there first. Only take your margin out after setting aside the net amount owed.

3. The "I'll Just Book the Cheapest Rate" Syndrome

New agents obsess over finding the absolute cheapest rate. They'll compare 15 different wholesalers for the same hotel, save SGD 8 per night, and spend 3 hours doing it.

The math doesn't work. If your time is worth SGD 30/hour (conservative for a professional agent), you just spent SGD 90 to save SGD 40 on a 5-night booking. You lost SGD 50.

Better strategy: Build relationships with 2-3 reliable wholesalers. Learn their strengths (one has better Southeast Asia rates, one has better luxury inventory, one has better payment terms). Use them consistently. The time you save more than compensates for occasionally paying SGD 5/night more than the absolute cheapest option.

4. Ignoring the Fine Print on Meal Plans

Client books "Breakfast Included" at a resort. They arrive and find breakfast is a continental buffet from 7-9am only. They wanted full breakfast until 11am. They're unhappy. They blame you.

Or worse: "All Inclusive" that doesn't include premium alcohol, or international cuisine restaurants, or motorized water sports. Client expected everything. You didn't clarify. Client is furious.

Solution: Read the meal plan details. Send a summary to clients: "Breakfast included means buffet breakfast from 7-9am. A la carte not available. Early breakfast can be arranged for SGD 15/person." Set expectations before they become problems.

5. The Overbooking Nightmare

This happens more than you'd think. You book through a B2B portal. The portal confirms. Client arrives. Hotel says "we're full, we oversold."

Why this happens: The hotel sells rooms through multiple channels (their website, OTAs, B2B portals, walk-ins). Their inventory management system has a lag or makes an error. They take more bookings than rooms available.

What you do:

  1. Immediately contact your B2B portal support (hence why 24/7 support matters when choosing suppliers)
  2. Demand they arrange alternative accommodation of equal or better standard at no cost to your client
  3. If they can't, you book alternative accommodation and invoice them for the difference
  4. Get compensation for the inconvenience (usually a discount on future bookings or cash credit)

The key: never let your client pay for the supplier's mistake. Your client relationship is worth more than one booking margin.

Comparison: B2B Portal vs. GDS vs. Direct Booking

You have three main ways to book wholesale hotel inventory. Here's the honest comparison:

Factor B2B Portal GDS (Amadeus/Sabre) Direct Hotel Booking
Rate Competitiveness ✓✓✓ Best net rates ✓✓ Good for chains ✓ Varies widely
Inventory Range ✓✓✓ 500K+ properties ✓✓✓ Huge inventory ✗ Single property
Booking Speed ✓✓✓ Instant (mostly) ✓✓ Instant ✓ Email/phone lag
Credit Terms ✓✓ After relationship ✓ Rare for small agents ✓✓ Negotiable
Setup Cost ✓✓✓ Free registration ✗ SGD 5K-15K initial ✓✓✓ Free
Monthly Fees ✓✓✓ None ✗ SGD 150-500/month ✓✓✓ None
Support Quality ✓✓✓ 24/7 chat/phone ✓✓ Business hours ✓ Varies by hotel
Learning Curve ✓✓✓ Easy (1-2 days) ✗ Steep (2-4 weeks) ✓✓ Simple
Best For New agents, SMEs, online agencies Corporate travel, large agencies Luxury specialists, niche properties

My Recommendation

If you're reading this guide, you're probably not operating at the scale where GDS makes financial sense. Start with B2B portals. They're free, the rates are excellent, and you can be booking profitably within 48 hours of account approval.

I still use B2B portals for 80% of my bookings after 13 years in business. GDS is for specific corporate clients who require it for their travel policy compliance. Direct hotel bookings are for that one boutique property in Ubud that isn't on any portal but my clients love—I've built a relationship with the owner, we do 40+ rooms per year there, she gives me rates no portal can match.

Ready to Start Booking?

You've made it through 2000+ words of wholesaling reality. If you're still reading, you're serious about this. Good.

Here's what you actually do next:

1. Choose your B2B portal. I recommend starting with one that has strong coverage in your target market. Southeast Asia? Look for portals with deep Thailand/Indonesia/Malaysia inventory. Selling to Chinese tourists? Priority to portals with Mandarin support and properties popular with Chinese travelers.

2. Register and verify your agency. Have your documents ready: business registration, agency license (if applicable in your country), tax ID, bank details. The faster you submit complete information, the faster you're approved.

3. Do a test booking for yourself. Seriously. Book a night at a nearby hotel you can easily visit. Go through the entire process: search, book, pay, generate voucher, check in with the voucher. You'll learn more from one real booking than from reading 10 guides.

4. Start with low-risk bookings. Your first 10 client bookings should be: short stays (1-2 nights max), flexible cancellation policies, properties with high review scores, and clients you trust to be reasonable if issues arise. Build your confidence and process before tackling complex bookings.

5. Build your systems. You need:

  • A spreadsheet or CRM to track bookings (confirmation numbers, client names, dates, amounts paid, amounts owed to suppliers)
  • Email templates for sending vouchers and pre-arrival information
  • A process for following up 48 hours before check-in
  • A separate bank account for supplier payments if you're using credit terms

Start Accessing Wholesale Hotel Rates Today

Join thousands of travel agents already booking hotels at net rates through our B2B platform. Registration is free, approval takes 24-48 hours, and you'll have access to 500,000+ properties worldwide.

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Final Thoughts

The wholesale hotel booking model is straightforward once you understand it. You pay net rates, add your margin, deliver value to clients, keep the difference. Simple.

The complexity comes from the details: cancellation policies, payment terms, name matching, meal plan specifications, client expectation management. That's where experience matters.

I made every mistake in this guide during my first two years as an agent. Cost me money, cost me clients, cost me sleep. You don't have to repeat them. Learn from people who've already paid the tuition.

Start small. Book carefully. Build systems. Grow deliberately. The margins are real, the business model works, and the industry needs professional agents who understand how to deliver value beyond just being a booking interface.

Your clients can book hotels themselves on Agoda. They come to you because you know which hotels are actually good, which rates are truly competitive, how to handle issues when they arise, and how to create travel experiences that are worth more than the sum of their components.

That's the business you're building. The wholesale booking process is just the mechanism. The real value is your expertise, your judgment, and your commitment to client satisfaction. Get those right, and the bookings will follow.

About this guide: Written by travel industry professionals with 13+ years of experience in wholesale hotel distribution. Updated January 2025. Market rates and examples based on Singapore travel market but principles apply globally.