In the evolving landscape of hospitality distribution, the role of bed banks has become increasingly significant.

Knowing how bed banks operate and how they differ from traditional OTAs empowers hoteliers to make informed decisions about inventory management and revenue optimization.

Definition of a Bed Bank

A bed bank is a business-to-business (B2B) wholesaler in the travel industry that purchases room inventory in bulk from hotels and resells it to travel agents, tour operators, and online travel agencies (OTAs).

Unlike OTA Hotels that sell directly to consumers, bed banks act as intermediaries, providing room allocations at pre-negotiated rates through global distribution networks.

Bed banks offer hotels access to wider markets by redistributing inventory to partners who may not have direct contracts with the property.

They operate on a commission or markup model, ensuring hotels sell rooms while maintaining rate parity and maximizing reach.

Examples of Popular Bed Banks

• Hotelbeds
• GTA (now part of Hotelbeds Group)
• WebBeds
• DOTW (Destinations of the World)

Why Hoteliers Must Understand Bed Banks

1. Maximize Global Distribution

Bed banks help hotels access markets and agencies that would be difficult to reach directly, expanding the hotel’s visibility worldwide.

2. Optimize Inventory & Manage Revenue

By allocating blocks of unsold rooms, hoteliers can manage occupancy during low-demand periods without overexposing rates publicly.

3. Simplify B2B Relations

Bed banks handle contracting, rate distribution, and partner management, reducing the administrative load on hotel sales teams.

4. Drive Off-Season Business

Bed banks are ideal for pushing sales in soft periods, thanks to their global reseller networks.

5. Enhance Brand Reach Without Direct Marketing

Bed banks promote the property through their distribution partners, increasing exposure without added marketing expenses.

Conclusion

Understanding bed banks is not just a sales tactic — it’s a strategic advantage.

In an industry driven by competitive rates, diverse markets, and fluctuating demand, hoteliers need to leverage all possible channels wisely.

Bed banks offer flexibility, global reach, and operational efficiency that, if managed well, can become a key contributor to overall business performance.