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The hotel supplier landscape can feel like learning a foreign language for new online travel agencies (OTAs). With hotel suppliers, hotel wholesalers, GDS systems, bed banks, and countless technical terms thrown around, it’s easy to feel overwhelmed when you’re just starting your OTA journey.
Understanding these terminologies isn’t just about industry knowledge—it’s about unlocking the right partnerships, negotiating better rates, and building a profitable travel business. Whether you’re dealing with hotel extranet systems or implementing hotel XML integrations through a comprehensive Universal Hotel API, mastering this vocabulary will transform how you operate in the competitive travel industry.
Key Insight: 68% of successful OTAs credit their understanding of supplier terminology as crucial to securing profitable hotel partnerships and achieving sustainable growth in their first two years of operation.
Hotel suppliers are the backbone of any successful OTA operation. These are companies that provide access to hotel inventory, rates, and availability through various technological connections. They act as intermediaries between hotels and travel sellers, offering everything from luxury resorts to budget accommodations worldwide through sophisticated supplier connectivity platforms.
The hotel supplier industry has undergone massive transformation with technology integration. Modern hotel XML connections and API integrations have revolutionized how OTAs access and manage hotel inventory, replacing traditional manual processes with real-time, automated systems through platforms like Zentrum Connect.
| Era | Technology | Access Method | Response Time |
|---|---|---|---|
| Pre-2000 | Manual Fax/Phone | Direct Hotel Contact | Hours/Days |
| 2000-2010 | GDS Integration | Amadeus, Sabre, Worldspan | Minutes |
| 2010-2020 | XML/SOAP APIs | Direct Supplier APIs | Seconds |
| 2020-Present | REST APIs/GraphQL | Multi-supplier Hubs | Real-time |
A company that consolidates hotel inventory from multiple suppliers into a single platform. Popular in the APAC region, hotel aggregators became prominent in the mid-2000s, offering OTAs access to diverse accommodation options through one integration point.
A set of protocols allowing different software applications to communicate. Hotel APIs enable real-time data exchange between supplier systems and OTA platforms, facilitating instant availability and booking confirmations. Modern B2B travel portals rely heavily on robust API integrations.
Specialized hotel wholesalers that purchase hotel room inventory in bulk at negotiated rates and redistribute it to travel agents and OTAs. The term originated from the practice of “banking” or storing room inventory for later sale. Major bed banks include Hotelbeds, WebBeds, and Travco.
Key Characteristics of Bed Banks:
Software that allows hotels to manage their inventory and rates across multiple distribution channels simultaneously. Essential for maintaining rate parity and preventing overbooking across different hotel suppliers and booking platforms. Modern booking engines integrate seamlessly with channel management systems.
A computerized system used to store and retrieve information and conduct transactions related to hotel reservations. Modern CRS systems integrate with multiple GDS platforms and supplier networks for comprehensive distribution.
A secure, web-based platform that allows hotels to manage their inventory, rates, and content across supplier networks. Hotel extranet systems serve as the primary interface where properties update their availability and pricing information.
Common Extranet Functions:
Individual travelers or small groups booking accommodations independently rather than as part of organized tours. FIT bookings represent a significant portion of modern OTA business, requiring flexible booking systems and diverse supplier connections.
Worldwide computerized reservation networks used as a single point of access for reserving airline tickets, hotel rooms, rental cars, and other travel products. The three major GDS systems are Amadeus, Sabre, and Travelport.
Hotel XML integration enables real-time connectivity between OTA systems and hotel supplier databases. This technology allows instant access to room availability, rates, and booking confirmation through structured data exchange protocols.
Benefits of Hotel XML Integration:
The process of overseeing and controlling hotel room availability across all distribution channels. Effective inventory management prevents overbooking while maximizing room utilization through strategic allocation across different supplier partners.
A lightweight data-interchange format that’s easier to read and write than XML. Many modern hotel suppliers now offer JSON APIs alongside traditional XML interfaces for more efficient data transmission.
An agreement allowing OTAs to sell a hotel’s final available room, ensuring maximum occupancy potential. This arrangement requires sophisticated inventory management systems and strong supplier relationships to prevent conflicts across distribution channels.
The process of matching identical hotels across different supplier systems to prevent duplicate listings and ensure consistent property information. Accurate mapping is crucial for OTAs using multiple hotel suppliers simultaneously.
Pricing model where OTAs purchase hotel rooms at wholesale rates and add their markup before selling to consumers. This model provides OTAs with more control over pricing and profit margins compared to commission-based arrangements.
The wholesale price charged by hotel suppliers to OTAs, excluding any markup or commission. Net rates allow OTAs to set their own selling prices and profit margins, providing flexibility in competitive pricing strategies.
Net Rate vs. Commission Models:
| Aspect | Net Rate | Commission |
|---|---|---|
| Payment | Upfront to supplier | After guest stay |
| Pricing Control | Full control | Limited control |
| Cash Flow | Immediate collection | Delayed payment |
Web-based businesses that sell travel products including hotels, flights, and packages directly to consumers. Successful OTAs leverage multiple hotel suppliers to offer competitive rates and comprehensive inventory to their customers. Learn more about online travel agencies and how they operate in the modern market.
Software used by hotels to manage their operations including reservations, guest check-in/check-out, room assignment, and billing. Modern PMS systems integrate with multiple distribution channels and supplier networks.
The practice of maintaining consistent room rates across all distribution channels. Hotel suppliers and properties enforce rate parity to prevent price wars and maintain brand value across different booking platforms.
A protocol for exchanging structured information in web services. Many traditional hotel suppliers use SOAP-based APIs, though newer systems are transitioning to REST APIs for improved performance and easier integration.
Technical interface provided by hotel suppliers enabling OTAs to access their inventory, rates, and booking capabilities programmatically. Quality supplier APIs offer comprehensive documentation, reliable uptime, and robust error handling.
Special discounted rates offered exclusively to registered travel professionals and OTAs. These rates are typically 10-40% below public rates and serve as incentives for travel sellers to promote specific properties or destinations.
Companies that purchase hotel inventory in bulk and resell it to OTAs, travel agents, and tour operators. Hotel wholesalers negotiate volume-based rates and provide access to global accommodation inventory through various technological platforms.
A markup language that defines rules for encoding documents in a machine-readable format. Hotel XML feeds are the standard method for transmitting hotel data including availability, rates, and property information between systems.
Understanding regional terminology differences is crucial for OTAs operating globally. The same business model might be called different names depending on the geographic market you’re targeting.
Selecting the right hotel suppliers can make or break your OTA’s success. Here’s a comprehensive framework for evaluating potential supplier partnerships:
| Criteria | Importance | Evaluation Points |
|---|---|---|
| API Quality | Critical | Response time, uptime, documentation quality |
| Hotel XML Format | High | Standardization, data completeness, update frequency |
| Integration Support | High | Technical assistance, testing environment, documentation |
| Extranet Functionality | Medium | User interface, reporting capabilities, mobile access |
These hotel suppliers should be your first integrations for comprehensive global coverage through reliable hotel suppliers connections:
Add these suppliers once you have solid foundational coverage:
Understanding the technical side of hotel XML integration helps OTAs make informed decisions about supplier partnerships and system requirements. Modern travel API solutions simplify this complex process for new OTAs.
Different hotel suppliers may provide conflicting information about the same property. Establishing proper hotel mapping and content standardization is crucial for maintaining data integrity across your platform.
Managing rate parity across multiple suppliers while ensuring competitive pricing requires sophisticated rate comparison algorithms and real-time monitoring systems.
Successful hotel XML integration requires ongoing performance monitoring and optimization. Key metrics to track include:
Operating with multiple hotel suppliers requires sophisticated content management strategies. Successful OTAs implement systematic approaches to handle duplicate content, pricing conflicts, and inventory synchronization across different supplier feeds.
Strong relationships with hotel suppliers can provide competitive advantages including better rates, priority support, and access to exclusive inventory. Successful OTAs invest in relationship building as part of their growth strategy.
The hotel supplier landscape continues evolving with new technologies and business models. Understanding these trends helps OTAs prepare for future opportunities and challenges in their custom travel solutions.
AI-powered systems are transforming how hotel suppliers and OTAs manage inventory and pricing:
Emerging blockchain technologies promise to revolutionize supplier relationships:
Understanding hotel supplier terminology is just the beginning of building a successful OTA business. From basic concepts like bed banks and GDS systems to advanced topics like hotel XML integration and hotel extranet management, each term represents a crucial piece of the travel technology puzzle.
The terminology covered in this guide represents the foundation of professional communication in the hotel supplier industry. Whether you’re negotiating with hotel wholesalers, implementing hotel XML connections, or managing hotel extranet relationships, speaking the language of the industry will enhance your credibility and effectiveness.
Success Story: “Within six months of mastering hotel supplier terminology and implementing proper integration strategies, our OTA increased booking volumes by 150% and improved profit margins by 25%.” – Leading European OTA Executive
Remember that successful OTAs don’t just understand terminology—they leverage this knowledge to build strategic partnerships, negotiate better rates, and deliver superior customer experiences. The investment in learning pays dividends through improved supplier relationships and operational efficiency.
Understanding hotel supplier terminology is crucial, but implementing the right technology solutions is what transforms knowledge into revenue. ZentrumHub’s comprehensive travel technology platform provides everything you need to succeed in the competitive OTA landscape.
Join hundreds of successful OTAs who trust ZentrumHub for their hotel supplier connectivity needs.
Ready to connect with top-tier hotel suppliers and transform your OTA business? Our expert team is standing by to help you navigate the complex world of hotel supplier relationships and technology integration. Contact ZentrumHub today to discover how our proven solutions can accelerate your growth and maximize your revenue potential.
