What is a bed bench? List of examples for hotels

What is a bed bench?

A bed bank is a business-to-business (B2B) travel provider that connects hotels with travel distributors, such as online travel agencies (OTAs) and tour operators. Serving as middlemen in the travel industry, bed banks allow hotels to increase occupancy without directly managing complex distribution channels.

By collaborating with bed banks, hotels gain access to international markets and diverse travel audiences. For example, a hotel in Australia could use a bed bank to market rooms to European travel agents, significantly expanding its global reach without the need for direct international marketing.

How does the bed bank concept work?

Bed banks operate by purchasing large rooms in hotels at a discounted bundle rate. These rooms are then resold to various travel distributors, such as OTAs, tour operators and travel agents, who then offer them to end consumers. This model helps hotels fill rooms that would otherwise remain vacant, improving overall occupancy rates without the need for extensive marketing efforts or partnerships with multiple distributors.

In the B2B travel sector, bed banks play a central role in serve as a bridge between hotels and distributorsenabling efficient room inventory management and wider market reach. Bed banks negotiate contracts with hotels for specific blocks of rooms, ensuring a constant supply to distributors. In turn, distributors benefit from pre-negotiated pricing and availability, which they can offer to their customers.

For example, a mid-sized hotel located in a tourist-heavy region could partner with a global bed bank to secure exposure to multiple international markets. The Bed Bank distributes hotel inventory to various OTAs and travel agents around the world, attracting guests who might not have found the hotel through direct channels.

This blog will tell you everything you need to know about bed banks, including how to connect to them and increase your hotel’s revenue.

Why should hotels use the largest bed banks?

Partnership with well-established bed banks, such as Hotel bedscan offer significant benefits to hotels looking to expand their presence in the market. Large bed banks have extensive global networks and established relationships with major travel distributors, making it easier for hotels to connect with a wider audience.

In addition to increasing visibility, partnerships with major bed banks help hotels access niche markets, such as corporate travel and specialty tour operators. By diversifying their distribution channels, hotels can reduce their reliance on direct bookings and ensure a consistent stream of revenue.

Benefits of partnering with a global bed bank

Partnering with a global bed bank can unlock significant growth opportunities for hotels by providing broader market access and increased revenue potential. Below are some key benefits to consider:

1. Expand your hotel’s visibility and reach niche markets

Partnering with a global bed bank opens doors to international markets and untapped niche audiences. Hotels can gain visibility on platforms that cater to specific types of travelers, such as luxury vacationers or adventure tourists, without resorting to direct marketing efforts.

2. Increase bookings and overall hotel revenue

Bed banks help your hotel refill its unsold inventory, especially during the low season. By offering rooms to a wider audience through various travel distributors, hotels can maintain higher occupancy rates throughout the year and increase overall revenue.

List of bed banks: Who are the main hotel bed banks?

Several key players dominate the bed bank industry, each offering unique services and benefits to hotel partners. Below is a list of some of the major bed banks:

• Hotel beds. Hotelbeds is one of the largest and largest bed banks, providing access to a global network of travel distributors. Their platform offers advanced tools for inventory management and dynamic pricing.
• Webbeds. WebBeds is known for its wide reach and competitive commission structures. They cater to a wide range of travel distributors, from OTAs to offline travel agencies.
• Travco. Travco specializes in providing hotels with access to international tour operators and wholesalers, ensuring broad market coverage.
• Bonotel. Bonotel focuses on luxury and boutique hotels, offering tailored services to properties aimed at attracting high-end travelers.
• HotelsPro. HotelsPro offers a robust platform for managing room allocation and rates, with a focus on real-time availability and seamless integration.

Is Hotelbeds a bed bank?

Yes, Hotelbeds is one of the most established bed banks in the industry, offering extensive distribution networks and advanced technology solutions for hotels.

Is Expedia a bed bank?

No, Expedia is not a traditional bed bank. Although it operates as an online travel agency, it works with bed banks to source hotel inventory.

Tips for Maximizing the Usefulness of a Hotel Bed Bank

1. Evaluate the conditions of partnerships with bed banks

Before signing a contract with a bed bank, you should carefully evaluate the terms and conditions, including commission rates, payment schedules and cancellation policies. This varies greatly from bed to bed, so check the fine print.

2. Balance bed reservations with direct and other sources

Although bed banks can significantly increase occupancy, over-reliance on third-party distributors can affect profitability. You should aim for a balanced mix of direct bookings and third-party partnerships – although obviously with direct bookings you retain more of your revenue.

3. Monitor and measure the performance of bed banks

Using performance metrics, such as revenue per available room (RevPAR) and time to book, can help you evaluate the effectiveness of their bed bank partnerships and make data-driven decisions to know whether to stay in partnership or look for solutions elsewhere.

4. Connect bed banks to the existing technology stack

Integrating bed banks with property management systems (PMS) and channel managers ensures seamless updates of room rates and availability, reducing manual workload and minimizing errors.