A practical breakdown of wholesale vs retail hotel booking. Real numbers, actual use cases, and honest advice on choosing the right approach for your travel business.
I've spent over a decade in the travel trade, and this question comes up in almost every conversation with new agents: "Should I book through B2B platforms or just use the same OTAs my clients use?"
The short answer? It depends on your business model. But that's not particularly helpful, so let me give you the full picture. By the end of this article, you'll understand exactly when each model makes sense, what the real margin differences are, and how successful agencies actually approach this in practice.
Before we get into the details, here's a side-by-side comparison covering the 10 factors that matter most to travel professionals:
| Factor | B2B Hotel Booking | B2C Hotel Booking |
|---|---|---|
| Pricing Model | Wholesale net rates (no markup included) | Retail rates with OTA commission built in |
| Target Audience | Travel agents, tour operators, DMCs, corporate travel managers | Individual travelers, general public |
| Markup Control | Full control - set your own selling price | None - fixed consumer price |
| API Access | XML/JSON APIs available for integration | Limited affiliate programs only |
| Payment Terms | Prepaid, credit terms (15-30 days), wallet balance | Immediate payment required |
| Support Level | Dedicated account manager, trade support | General customer service |
| Vouchers/Branding | White-label vouchers with your branding | OTA branding visible to guests |
| Minimum Requirements | Business verification (trade license, IATA, etc.) | None - anyone can book |
| Commission Structure | Your profit = sell price minus net rate | Fixed affiliate commission (2-6%) |
| Best For | Agents wanting margin control and volume discounts | Occasional bookings, price comparison, walk-in referrals |
B2B stands for Business-to-Business. In the hotel world, this means booking platforms designed specifically for travel trade professionals. Think of it as the wholesale side of the industry - the part consumers never see.
When a hotel wants to distribute rooms efficiently, they work with bed banks, DMCs, and consolidators who aggregate inventory and make it available to travel agents. These intermediaries negotiate rates that are typically 15-40% below what you'd find on consumer-facing sites. The trade gets this discount because agents handle customer service, bring reliable volume, and don't demand the 15-25% commission that OTAs charge.
Let's say the Marriott in Singapore has a retail rate of SGD 250 per night. Here's how that same room might be priced across different channels:
The math works because when hotels sell through OTAs, they're paying massive commissions anyway. By offering lower rates to trade partners who handle their own distribution, hotels still come out ahead. Everyone in the chain makes money, and the end customer often pays less than the OTA price.
B2B platforms require business verification. This typically includes trade licenses, IATA membership, tourism board registration, or company incorporation documents. The idea is to ensure only legitimate travel businesses get wholesale access - otherwise the pricing model falls apart.
B2C means Business-to-Consumer. These are the platforms everyone knows: Booking.com, Expedia, Agoda, Hotels.com, and direct hotel websites. They're designed for individual travelers to search, compare, and book hotels directly.
The B2C model is simple. Hotels list their rooms, OTAs market them to millions of consumers, and when a booking happens, the OTA takes a commission (typically 15-25% of the room rate). That commission is baked into the prices you see - it's why "retail rates" exist in the first place.
From a hotel's perspective, OTAs are expensive but necessary. Most travelers start their hotel search on Google, and OTAs dominate those search results. Without OTA distribution, many hotels would struggle to fill rooms. It's a trade-off: high commission costs versus massive marketing reach.
For consumers, B2C sites offer convenience, reviews, comparison tools, and loyalty programs. For travel agents, though, they present a problem: the same prices your clients can find themselves.
The comparison table gives you the overview. Now let's dig into what these differences actually mean for your daily operations.
With B2B, you see net rates. These are the actual cost to you before any markup. With B2C, you see retail rates that include the OTA's commission - you can't tell what the underlying hotel rate actually is.
This matters because on B2B, you can calculate your exact margin. If your net rate is SGD 150 and you sell at SGD 190, you know you're making SGD 40. On B2C, you're stuck with whatever affiliate commission the platform offers - usually 2-6% of the booking value.
When your client checks into a hotel booked through B2C, the hotel sees "Booking.com" or "Expedia" as the source. Your agency doesn't exist in that transaction.
B2B platforms provide white-label vouchers. The hotel voucher shows your company name, your contact details, and no pricing information. Your client sees you as the service provider, not just a middleman who used Booking.com.
B2C requires immediate payment. Book today, pay today. For agents managing multiple client bookings, this creates cash flow challenges.
B2B offers options: pay per booking, maintain a prepaid wallet balance, or qualify for credit terms. Established agents with good booking history often get 15-30 day payment cycles. This means you can collect from your client before you need to settle with the supplier.
B2C support handles millions of consumer queries. It's designed for volume, not complex travel trade issues. When you call about modifying a multi-room group booking, you're in the same queue as someone asking about pool towels.
B2B support understands trade requirements. Account managers know you're booking for clients, not yourself. They can handle amendments, group requests, and supplier issues with context about how professional travel booking works.
I've had situations where a hotel overbooked during peak season. On B2C, you're fighting for a refund while your client has no room. On B2B, your account manager calls the hotel directly, often negotiating a comparable or upgraded alternative. The relationship matters.
Theory is one thing. Let's look at actual numbers to see how these models compare in practice.
Result: B2B delivers 5x more profit on the same booking. Client still saves SGD 45 vs OTA price.
Result: B2B delivers 8x more profit. Client saves USD 250 vs OTA. Maldives resorts typically have the best B2B margins.
There are situations where B2C booking is the practical choice:
After years in this business, here's my honest advice based on different agency situations:
Almost every established travel agency I know uses B2B as their primary booking channel. The margin difference is simply too significant to ignore. B2C becomes a backup for edge cases - last-minute emergencies, properties not in your B2B system, or clients who walk in with a specific OTA booking they want matched.
The smartest travel professionals don't pick one model exclusively. They use both strategically based on the situation.
Step 1: Always check B2B first. When a client inquiry comes in, your first stop should be your B2B portal. Check availability and net rates for the requested dates and property.
Step 2: Compare against B2C as a reference. Look up the same property on Booking.com or Expedia. This tells you the retail benchmark - what your client would pay if they booked themselves.
Step 3: Calculate your margin opportunity. If B2B net rate is SGD 150 and OTA shows SGD 200, you have SGD 50 of potential margin. Price competitively (say SGD 180) and everyone wins.
Step 4: Use B2C when it makes sense. If the OTA has a flash sale at SGD 130 and your B2B shows SGD 140, book through B2C. Grab the affiliate commission and move on.
Sometimes the right advice is telling your client to book themselves. This sounds counterintuitive, but it builds trust:
By being honest about when you add value versus when you don't, clients trust you more on the bookings where you genuinely save them money and provide service.
Want to learn more about B2B hotel booking? Check out these resources:
Join 500+ travel agents already using our B2B portal. Free registration, no commitments, 24-48 hour verification.
Questions? Call us at +65-8948-0242 or email partners@dmcquote.com