Why is hotel prices different?

Understanding Hotel Prices: Differences Between B2C and B2B, and How Geo-Targeted Prices Work
When booking a hotel, you may notice that prices can vary widely depending on how and where you book. These differences often come down to whether the booking is made through a B2C (business-to-consumer) channel or a B2B (business-to-business) channel. Geo-targeted pricing also plays a big role in the final price. Let’s break this down into simple terms.
What is B2C Pricing?B2C pricing is what regular travelers see when they book a hotel room through websites like Booking.com, Expedia, or directly on the hotel’s website. Here are the key points about B2C pricing:

1. Standard Rates: Prices are usually listed as “Rack Rates,” which are the highest possible rates.
2. Discounts for Consumers: Hotels often provide promotional discounts, last-minute deals, or early booking offers to attract individual travelers.
3. No Bulk Deals: Since bookings are made one at a time, there are no special discounts for bulk or frequent bookings.

What is B2B Pricing?B2B pricing is for travel agents, corporate clients, or wholesalers who book large numbers of hotel rooms. Here’s how it works:

1. Bulk Discounts: Hotels offer lower rates to businesses that can guarantee high volumes of bookings.
2. Contracted Rates: Businesses and hotels sign contracts for fixed rates over a specific period. These rates are often significantly lower than B2C rates.
3. Special Services: B2B clients may receive extras like free upgrades, late check-outs, or added amenities as part of the contract.

Why Do These Differences Exist?The difference in pricing is due to the nature of the relationship. B2C customers are individuals booking one or two rooms at a time, while B2B clients are businesses that provide steady and large-scale bookings. Hotels value the reliability of B2B relationships and reward it with better pricing.
How Does Geo-Targeted Pricing Work?Geo-targeted pricing means that the price of a hotel room can change based on the location of the person making the booking. This practice is common in the travel industry. Here’s how it works:

1. Based on Demand: Hotels adjust prices depending on where the demand is coming from. For example, someone booking from a high-income country might see higher prices than someone booking from a lower-income region.
2. Currency Adjustments: Prices may also vary to account for currency exchange rates. A booking made in USD might show a different price compared to one in EUR.
3. Targeted Promotions: Hotels sometimes offer discounts to customers from specific regions to encourage bookings during off-peak seasons.

An Example of Geo-Targeted PricingImagine a hotel in Dubai:

• A traveler booking from Sweden might see a higher price because of higher demand during winter.
• A traveler from India might see a lower price to attract guests from that region.

Tips for Travelers

1. Compare Prices: Use multiple websites and check rates for different regions if possible.
2. Use a VPN: Some travelers use VPNs to see prices from other countries and potentially save money.
3. Work with a Travel Agent: Agents often have access to lower B2B rates and can pass the savings on to you.

ConclusionUnderstanding how B2C, B2B, and geo-targeted pricing work can help you find the best deals on hotel rooms. Whether you’re booking as an individual or through a travel agency, knowing these differences allows you to make smarter choices and save money on your next trip.

​Hotels shows different availability in different  websites

The reason a hotel can appear fully booked on one website but still have available rooms on another is due to how hotel inventory is managed and distributed across different booking platforms. Here’s an explanation in simple terms:
1. Different Allotments of Rooms
​Hotels allocate their rooms to various booking channels, such as online travel agencies (OTAs) like Booking.com, Expedia, or their own website. Each platform gets a certain number of rooms to sell. If one platform sells all its allocated rooms, it will show as fully booked, even if other platforms still have rooms available.

• Example: A hotel gives 20 rooms to Booking.com and 10 to Expedia. If Booking.com sells all 20 rooms, it will show “fully booked,” but Expedia may still have its 10 rooms available.

2. Direct vs. Indirect Bookings
Hotels often keep some rooms exclusively for direct bookings through their own website or phone reservations. If an OTA shows no availability, it’s worth checking the hotel’s official site, as they may still have rooms that aren’t listed elsewhere.
3. Inventory Updates and Delays
Room availability is managed through a system called a channel manager, which connects the hotel’s inventory to various booking platforms. Sometimes, there can be a delay in updating the availability across all platforms, causing one website to show availability while another shows “fully booked.”
4. Special Agreements with Platforms
Some platforms have exclusive agreements with hotels to offer specific types of rooms or discounts. If those exclusive rooms are sold out, the platform will show “fully booked,” even though the hotel may still have other rooms available through different platforms.
5. Cancellations and Holds

• Pending Reservations: A platform might temporarily hold rooms for customers who are in the process of booking. If they don’t complete the booking, the rooms might become available again but not instantly reflected on all websites.
• Cancellation Policies: Some platforms show rooms as unavailable until cancellations are processed. Other platforms might reflect cancellations faster.

6. Geo-Targeted Pricing and Availability
​Sometimes, availability is tied to your location. A platform might show rooms as unavailable for one region but available for bookings from another region. This is less common but happens occasionally as part of geo-targeted marketing strategies.
What Can You Do?

1. What Can You Do?
2. Check Multiple Platforms: If one platform shows fully booked, look at others, including the hotel’s direct website.
3. Contact the Hotel Directly: Hotels can sometimes offer rooms even if third-party platforms don’t show availability.
4. Work with a Travel Agent: Travel agents often have access to lower B2B rates, exclusive deals, and room availability that may not show up online. They can also simplify the booking process for you.

Save TIME and MONEY.

Using a travel agent ensures you have access to the best room availability and prices, even when online platforms show discrepancies. They have exclusive access to B2B rates, bulk discounts, and inventory that isn't always visible to the public. With our expertise and connections, 1st Choice saves you time, provides personalized recommendations, and ensures a hassle-free booking experience.