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66


focus on


Bedbanks - Sleeping Patterns - T


he trend towards dynamic


packaging has


put bedbanks at the top of the agenda for many agents, but there’s still plenty of industry-wide confusion over fi nancial protection and who takes responsibility if anything goes wrong, says Dave Richardson


FINANCIAL COVER? Agents know that booking each individual element of a trip can be a relative money-spinner, but the consequences of something going wrong remains rather hazy. Such confusion was heightened by the collapse last March of OHG Accommodation, part of the On Holiday Group. Most of the bookings were transferred to other bedbanks and customers were protected, but many hotels lost out with OHG having debts of nearly £10 million – evidence of wafer-thin margins in a highly competitive business. Some bedbanks belong to ABTA, but unlike package operators they don’t have to offer fi nancial protection. But ABTA has made it compulsory for bedbank members to honour bookings when an agent fails, which led to some companies quitting the association. Putting up a bond could add prohibitive costs and


make a bedbank uncompetitive, but many now have agency agreements meaning that they do not take


money from agents until after the customer has travelled, so fi nancial protection is unnecessary. Bedbanks work on a variety of business models, with some being trade-only and others also selling direct to the public. Those working with agents sometimes pay variable rates of commission or offer nett rates, especially when the accommodation booking is being used as part of a tailor-made package. Some bedbanks also offer XML feeds directly into trade partners’ websites. All these ways of working with agents are handled by Amadeus Hotels Plus, a new platform which offers GDS users comparative shopping across hotel chains, representation companies, independent hotels and leading bedbanks. Another advantage of using the system, available


to leisure and business agents, is that they get access to bedbanks based in other countries not normally used by the UK trade. Sandy Brckovich, Commercial Manager – Hotel Solutions of Amadeus UK & Ireland, says: “This is ideal for agents who have websites for online bookings or who have developed their own reservations tool – call centres or homeworkers, for example. “A property may be shown by more than one hotel


aggregator, so we allow agents to choose which one to book because some offer better commission rates or other benefi ts. We have more than 235,000 properties, and the new bedbank content has increased the number by 255% in the last year.”


This page: Nobu Hotel, Las Vegas; Gown at Fancourt Hotel, a property located on South Africa's Garden Route; Next page: The lakefront-facing Grand Hotel, Zell am See, Austria, is a popular choice for British travellers


Popular bedbanks include Bedsonline, TravelCube,


HRS, Alba Travel and Destinations of the World, with many more being added. Availability displays have simple icons indicating features such as whether breakfast is included, and easy-to-use mapping. “Flights and hotels can be integrated in the same


PNR, which means less paperwork and cuts out errors,” adds Ms Brckovich. “Amadeus Hotels Plus allows agents to book accommodation much more easily. We simply provide the technology, and don’t get involved in commercial arrangements between bedbanks and agents.”


MARKET LEADERS The failure of OHG Accommodation has not reduced competition as agents have plenty of choice, with Magic Rooms being created out of the remnants of the failed operation. Most bedbanks offer both city and resort accommodation, including in the UK. Market leaders include Thomas Cook-owned brands Medhotels and Hotels4u, and the Lowcosttravelgroup whose brands include Lowcostbeds and Lowcostholidays. Many bedbanks have links to airport transfers and sometimes other services, or have full dynamic packaging capability. Getabed is also one of the market leaders, and longer established than most with a 23-year track record. Like some other major bedbanks it operates in many other countries, creating huge buying power; and it has negotiated direct contracts between its trade customers and hotel groups. Global Managing Director Matt Stuart says: “A very competitive market place inevitably leads to


sellingtravel.co.uk


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