Hotel Distribution Channels Explained
Short answer: hotel distribution channels are the routes by which a hotel's rooms reach the people who book them. The main ones are direct sales, online travel agencies (OTAs), global distribution systems (GDS), wholesalers and bedbanks, corporate accounts, and destination management companies (DMCs) and tour operators. Each channel reaches a different buyer, uses a different kind of rate, and needs different work from the hotel.
Part of our guide for hotels selling rooms to B2B buyers in Vietnam.
The main channels at a glance
| Channel | Who books | Usual rate type | How the hotel works with it |
|---|---|---|---|
| Direct | Guests via the hotel website, phone, email, walk-in | Public rate | Booking engine and reservations team |
| OTA | Individual travellers on consumer booking sites | Public rate, hotel pays the OTA | Extranet or channel manager |
| GDS | Travel agents and travel management companies, mostly for business travel | Public or negotiated corporate rate | Through a GDS representation or connectivity provider |
| Wholesaler or bedbank | Travel agencies, tour operators, OTAs, and companies buying from the wholesaler | Net rate, confidential | Written contract; the wholesaler loads it |
| Corporate | Companies booking staff and guest stays | Negotiated rate | Corporate agreement, often with invoicing terms |
| DMC and tour operator | Groups, incentive trips, and packaged tours | Net or group rate | Contract or group quotation with deposit and release dates |
Direct and online channels
Direct
The hotel keeps the full relationship with the guest and the booking. It also carries the cost of marketing to bring those guests in.
OTAs
Large reach to individual travellers. The hotel sells at public prices and pays the OTA for each booking under the OTA's terms.
GDS
The systems many travel agents and corporate travel managers use to book air, hotel, and car. Relevant mainly for business travel demand.
Contracted B2B channels
Wholesalers and bedbanks
Contract rooms at net rates and resell them to travel businesses, which sell under their own brand. One contract can reach many buyers the hotel would not sign one by one. See net rates for hotels.
Corporate accounts
Companies booking for staff and visitors. They value clear invoicing, consistent conditions, and a single point of contact.
DMCs and tour operators
Bring groups, company trips, and packaged travel. Often booked as room blocks with a deposit, a balance, and a release schedule.
Building a sensible channel mix
- Know which channel fills which dates. Business demand, leisure demand, and groups often arrive at different times of the week and year.
- Keep net rates confidential and sold only inside packages or partner pricing, so they do not undercut public prices.
- Write public-rate or parity conditions into B2B agreements where the hotel needs them.
- Check who the end buyer is, how bookings are confirmed, and how payment works before signing with a new channel.
- Keep the tools in order: a channel manager for online channels, written contracts for negotiated business. See what is a hotel channel manager.
Where Bedtara fits
Bedtara is a B2B hotel supplier, or bedbank, for Vietnam, operated by Dong Thi Co., Ltd, in Vietnamese travel and accommodation since 2008. It sits in the wholesale channel. The hotel signs one written agreement with Dong Thi Co., Ltd, and Bedtara brings bookings from companies (HR, admin, and finance teams booking staff and guest stays, often with a VAT invoice), travel agencies, tour operators, and OTA partners, plus company trips and group room blocks quoted with a deposit, balance, and release schedule. Bookings are confirmed with the hotel in writing, and payments follow the agreement. Bedtara does not sell to individual travellers, and net rates are never published or disclosed to third parties.
Questions
What are the distribution channels in the hotel industry?
Direct sales, online travel agencies, global distribution systems, wholesalers and bedbanks, corporate accounts, and DMCs and tour operators.
What is the difference between an OTA and a bedbank?
An OTA sells to individual travellers at public prices. A bedbank sells to travel businesses at confidential net rates, and they resell under their own brand.
Should a hotel sell through a wholesaler?
It can add demand from buyers the hotel does not reach directly, provided the agreement covers rate confidentiality, parity conditions, payment terms, and who the buyers are.
What is a channel manager Hotel extranet explained Net rates for hotels Questions to ask a bedbank For hotels
Add a B2B channel in Vietnam
One agreement with Bedtara brings requests from companies, agencies, and tour operators.