Do middlemen’s commission have a role in inflated hotel pricing?
one of the major challenges that one faces while booking hotels for corporates today is mastering the art of connecting buyers and sellers in an effective manner where price, quantity, finance, and logistics work in harmony.
Usually, corporates (buyers) and hotels (sellers) do not have time to deal with negotiations, finance, and logistics personally, which is why they assign special agents called Mandates to facilitate negotiations and strategize the movement of large amounts of corporate bookings across hotel chains. Mandates include company employees/departments, or independent companies, that earn a commission on the transactions they manage for the buyers or sellers.
Now how does this process work? The mandate if cannot find a buyer and seller (hotels/ cooperates) directly, they use middlemen to find out possible trade partners and contacts. This middleman then uses contacts through other middlemen. Typically through a series of commissions, the mandate reaches a deal. The actual difficulty is caused by the passing of accommodation arrangements to the middlemen which inflates the actual price.
Problems
Solution
So is there a solution?
Yes, there is - Become a Hobser.
Being a Hobser, will let you find a solution to this age-old problem by providing a Market Place to ensure transparency and efficiency in hotel bookings within a trusted environment.
We believe that our solution will simplify the booking process and connect serious and real players—allowing them to engage in tension free bookings.
Usually, corporates (buyers) and hotels (sellers) do not have time to deal with negotiations, finance, and logistics personally, which is why they assign special agents called Mandates to facilitate negotiations and strategize the movement of large amounts of corporate bookings across hotel chains. Mandates include company employees/departments, or independent companies, that earn a commission on the transactions they manage for the buyers or sellers.
Now how does this process work? The mandate if cannot find a buyer and seller (hotels/ cooperates) directly, they use middlemen to find out possible trade partners and contacts. This middleman then uses contacts through other middlemen. Typically through a series of commissions, the mandate reaches a deal. The actual difficulty is caused by the passing of accommodation arrangements to the middlemen which inflates the actual price.
Problems
- There are too many middlemen in the picture, resulting in disagreements on commissions, which extends the timeline.
- The price of the hotels does not reflect its true value to the lack of transparency between Mandates and the desire of the middlemen to capitalize on the deal.
- The costs associated with negotiations are high for cooperates.
Solution
So is there a solution?
Yes, there is - Become a Hobser.
Being a Hobser, will let you find a solution to this age-old problem by providing a Market Place to ensure transparency and efficiency in hotel bookings within a trusted environment.
We believe that our solution will simplify the booking process and connect serious and real players—allowing them to engage in tension free bookings.