The Travel Industry Markup Chain — And How to Skip It
Between a hotel's base price and what you pay on Booking.com sit multiple intermediaries — each adding their cut. EezyStay skips the chain entirely and connects you to the net rate.
The Four-Layer Markup Chain
Here's how hotel pricing actually flows:
Layer 1: Hotel Net Rate — The base price. This is what the hotel needs to cover costs and make a margin. For a room that "retails" at $200, the net rate might be $130-150.
Layer 2: Wholesaler/Distributor — Companies like Hotelbeds, WebBeds, and Tourico buy inventory at the net rate and redistribute it. They add 5-15% margin.
Layer 3: Online Travel Agency — Expedia, Booking.com, Hotels.com take the wholesaler price and add their commission (15-25% of the final price). This is where most consumers book.
Layer 4: Metasearch/Advertising — Google Hotels, Trivago, Kayak charge the OTAs for clicks. This cost gets passed through to the hotel's distribution budget — and indirectly to you.
By the time you see a price, the hotel's $135 net rate has become $200.
The Flight Markup Chain
Flights follow a similar pattern:
Airline wholesale → Consolidator (5-10% markup) → GDS fees → OTA commission (10-20%) → Consumer
A $600 wholesale economy fare becomes $750-850 at retail.
How Wholesale Membership Clubs Skip It
EezyStay's wholesale travel club model removes layers 2, 3, and 4. The pricing flow becomes:
Hotel net rate → EezyStay → You
EezyStay accesses hotel net rates directly through wholesale agreements. There's no OTA commission, no wholesaler markup, no metasearch advertising cost. The club's revenue comes from your $147 annual membership — not from marking up your booking.
What This Means in Dollars
| Price Component | Traditional OTA | EezyStay |
|---|---|---|
| Hotel net rate | $135 | $135 |
| Wholesaler margin | +$15 | $0 |
| OTA commission | +$35 | $0 |
| Metasearch cost | +$15 | $0 |
| You pay | $200 | $135-145 |
That's $55-65 saved per night, per room. Over a week, it's $385-455.
Why Hotels Willingly Participate
Hotels offer net rates to wholesale channels because: - It guarantees occupancy without paying OTA commissions - It's more cost-effective than retail distribution - It fills inventory during slow periods
The hotel earns less per room but saves on distribution costs. It's a win-win — except for the middlemen who get cut out.
Travel Agents Have Known This for Decades
Licensed travel agents access net rates through IATA accreditation and GDS systems. Membership clubs now provide the same access tier to regular travellers — no license required.
Stop feeding the markup chain. Join EezyStay and pay net rates. Start your membership →
Related Reading
- Why Hotels Sell Rooms at Wholesale — And How You Can Access Them
- Travel Agent Prices Without Being a Travel Agent — Here's How
- How Travel Agents Access Net Rates — And Why You Can Too
- Back to EezyStay Home
Frequently Asked Questions
How many middlemen are in hotel booking?
A typical retail hotel booking passes through 3-4 intermediaries: wholesaler, distributor, OTA, and sometimes metasearch — each adding margin.
How much markup is added by OTAs?
Online travel agencies typically add 15-25% commission on each hotel booking, which is baked into the price you see.
How does EezyStay skip the markup chain?
EezyStay accesses hotel net rates directly through wholesale agreements. The club's revenue is the $147 membership fee, not commissions on bookings.