Revenue. It’s why airlines buy hotel rooms and travel agencies add ancillary products and providers. To generate revenue, travel inventory suppliers must be able to provide:
- The best inventory – to increase attachment rates
- At the best rates – to provide higher margins and better returns
If your brand is in the market to purchase travel inventory, ask these three questions to ensure your potential provider can help you reach your revenue goals.
3 questions when considering travel inventory suppliers:
- Will your provider be a partner or a competitor? If your potential provider is selling travel inventory direct to consumers, they are truly a competitor. Consider this: If your provider is selling you the same inventory they also sell consumers, which travel brand do you think they’ll promote? Bookings on their site will always take priority over bookings on your site. When consumers search for products and offerings, yours will take a back seat to theirs – it’s the nature of the business.
- Are you getting rate parity? Rate parity is a direct result of your partner competing for travel customers. If your provider also is selling inventory to consumers, are their consumer prices lower than the rates they’re offering you? Consider the customer’s travel booking journey: they’re searching online for the best inventory (flights, hotels, activities) at the best prices. If your provider’s prices are lower, why would consumers book with you? Take a look. You may be surprised.
- How will your provider help you reach your goals? Have a conversation about your revenue goals and how your partner will help you achieve them. Are they proposing to help you sell more inventory or will profits come from a larger revenue share? If more inventory is the answer, how long will that take? Better margins mean immediate revenue growth. Think about it: would you rather sell more inventory at your current margin, requiring more resources (time and money), or sell the same amount of inventory and receive a greater revenue share? More volume isn’t guaranteed and will take a lot longer to show growth than the immediate revenue that better margins provide.
Consider the technology.
Increasing revenue is the main objective. But profitability can’t be achieved if implementing new partners strains valuable resources. The revenue gained will be offset if accessing a wealth of new inventory means having to connect with six or eight separate APIs. Multiple API connections costs more and may provide data that’s duplicated. In addition, multiple APIs compete with core products for IT resources.
Instead, connect with a provider that has the capability to aggregate inventory from multiple supplier networks, but with a single API connection. The single API aggregator model provides more inventory, better prices and lower implementation costs. It’s less taxing on IT systems and there are fewer contracts to manage. The result: generating revenue without losing valuable resources.
At Connexions, we pride ourselves on the best inventory at the best rates – the combination necessary to help our clients generate revenue and grow their businesses. Connexions isn’t a B2C company, so we’ll never compete for your customers. We’re the largest loyalty-only travel supplier with a breadth of travel inventory and partnerships globally. We’re supplier agnostic, aggregating travel content so our clients can provide customers with the top inventory at the best rates.
Our revenue share model beats the competition, meaning many of our clients have increased revenue from day one of our partnership.