WTM 2019: Hotelbeds forfeits €300m as it pursues ‘rate integrity’

Hotelbeds said it has forfeited €300 million in revenue as part of a drive to maintain “rate integrity”.

The bed bank giant began examining the issue of wholesale room rates appearing in channels they should not such as B2C, six months ago and invested in new technology to stamp out “bad practices”.

Hotelbeds introduced a “three strike policy” for partners and if they are found to be breaching the rules it stopped trading with them.

MoreGet the latest from World Travel Market 2019 with Travel Weekly’s live coverage

Global sales director Leon Herce said the business has seen a 90% reduction in the practice as a result.

Commenting on current trading at this year’s WTM event in London, Herce said: “As a source market, we have seen some slowing down in the last couple of months probably because of the effect of Brexit and the depreciation of the pound.”

But he said Hotelbeds was not severely impacted by Thomas Cook’s failure last month as the travel giant was not one of its main customers.

“Hotels which sold a lot through Cook are now coming to us, so it’s an opportunity for us but obviously we’re sorry to see it go.”

Share article

View Comments

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.