G2 Travel is a dynamic, service-driven wholesale tour operator offering a range of solutions for group travel and FIT distribution worldwide. They combine industry expertise with destination knowledge and technology innovation to bring the very best service to their partners.
As part of our Expert Check-In series, we recently sat down with Cristina Radu, Destination Manager at G2 Travel, to gain deeper insights into current trends, challenges, and opportunities in the group travel sector. Cristina shared her expert perspective on the importance of adaptability in today’s market, and how hoteliers can navigate the world of wholesalers.
Travel wholesalers, also known as bed banks, are B2B companies that act as intermediaries between hotels and travel agents. They usually purchase large blocks of hotel rooms at discounted rates and then resell these rooms to tour operators and travel agencies. This way, hotels can maintain a certain occupancy level while travel agents can offer competitive packages to their clients.
Wholesalers can be a vital part of hotels’ distribution strategy. When used strategically, it offers opportunities to attract a more diverse range of guests, ultimately increasing the number of bookings. Although some hoteliers hesitate due to the expectation of lower (packaged) rates, with the right partnerships, you can open an additional revenue stream.
G2 Travel was founded in 2012, focusing on group and B2B FIT* travel. Unlike other wholesalers, we don’t work with large OTAs. From the beginning, the owner kept telling us that if we wanted to be successful, we had to do things differently, particularly in how we handled distribution, so we focus on distributing through tour operators, travel agencies, and smaller wholesalers worldwide. We basically sell the world to the world.
*FIT stands for Fully Independent Traveler (some replace Fully with Free) and it refers to individuals who plan and arrange their own travel itineraries on their own, not as part of a Group. This contrasts with Group Inclusive Tours (GIT), where a package is booked for a group of people.
There are two key ways we differentiate ourselves. First, we have a clean distribution model, as we don’t sell directly to B2C customers. Second, it’s easy to work with us when it comes to payments. Many in the industry struggle with VCCs and invoicing delays, with some wholesalers only processing invoices 45 days after check-out. We take a more flexible approach. With our static contracts, VCCs are not an issue, and hotels really value that flexibility. With G2 Travel, you'll receive the VCC details at the time of booking, and the card will be charged at check-in, not check-out.
On the technical side, the setup is straightforward but requires precision. SabeeApp, G2, and Hyperguest all need to have the exact same rate plans, room types, and occupancies mapped between them. This ensures that your correct info (BAR) is pushed from your hotel through SabeeApp and Hyperguest to us. In return, we send booking information and VCC details back through the same system. The key to success here is accurate mapping because if room types are mismatched, either the hotel or G2 could face revenue loss or operational issues.
At G2, we truly aim to accommodate our partners. This flexibility is a big contrast to how other wholesalers operate.
We generally prefer working with hotels over apartments or very small properties, as they have the capacity to accommodate larger groups. However, in the FIT department, we do have some smaller accommodations in our portfolio, with at least 6-7 rooms.
Ideally, we look for hotels with at least 30 to 40 rooms. They don’t have to be in a central location, but they do need to offer competitive rates. We find that we work much more effectively with independent hotels than with hotel chains. Big chains often have strict rules set by their headquarters and typically only offer static contracts through local operators. Even when a General Manager is open to working with us, they’re often restricted by corporate policies.
In terms of performance, our best sellers are typically three- and four-star hotels. While five-star hotels bring in higher revenue due to percentage-based markups, it’s much harder to generate high volumes with them.
If you're only working with OTAs, you're putting all your eggs in one basket. Diversifying is key, and that’s where wholesalers come in.
One of the biggest advantages is the booking window. Wholesalers typically bring bookings much further in advance compared to OTAs. For example, in Budapest, the average booking window through wholesalers has increased from around 60 days last year to almost 70 days this year. That means many reservations are made two months before arrival, giving hotels more predictability.
Cancellations are also significantly lower with wholesalers. On OTA platforms, guests often book multiple hotels and decide later which one to keep. Most OTA bookings come in during the last 7 to 14 days before check-in, which makes it hard to manage capacity effectively. With wholesalers, you're more likely to secure stable, long-term bookings and enjoy greater peace of mind.
Also, many travelers from non-English-speaking countries still rely on travel agencies. These guests prefer working with someone who can handle everything for them and offer tailored recommendations. For example, Japanese travelers may look for specific room types like twin beds instead of doubles, or prefer bathtubs over showers. A wholesaler working with trusted agents knows these preferences and can match the guest with the right property.
Think of it this way: if you’re planning a trip to the Maldives, would you want to book each leg of the journey - international flight, local transfer, and the resort - on your own? Or would you prefer someone to handle it smoothly for you, especially if things go wrong? That’s the kind of support wholesalers help provide, both for travelers and for hotels.
One of the biggest mistakes new hotels make when entering the wholesale market is overpricing. They often don’t realise that when working with wholesalers, you need to discount your standard rate by around 35%. Static rates are fixed rates that wholesalers can package and sell through various distribution channels. But unlike OTAs, wholesalers don’t sell directly to the end customer, there are usually at least two intermediaries involved. That’s why margins must be adjusted accordingly.
Some hotels compare the net rates offered to wholesalers with the net revenue from OTA’s and assume they’re getting less value. But what they forget is that OTAs show gross rates and later charge commission, whereas wholesalers operate on a net rate basis from the beginning. For example, an OTA might sell a room for €100, and after deducting the commission, the hotel receives €85. With a wholesaler, the hotel might give a net rate of €85 directly. But the wholesaler adds their markup before it reaches the final customer. The end rate might still be €100 or more, but the process looks different on paper.
Another common misunderstanding is around reporting. When hotels mix gross and net bookings in the same report the Average Daily Rate (ADR) can appear misleading. It’s important to understand how rates are calculated and how commissions and markups are handled across platforms.
Not necessarily. Most leisure groups book at very low rates, making them the least profitable segment. Other sectors like pharmaceutical or medical, can be more valuable, but they’re less frequent and often harder to secure.
I would recommend, instead of relying heavily on group bookings, to focus on the FIT bookings we can generate for them and on using smart revenue management systems. Many properties miss out on key opportunities simply because they aren’t aware of upcoming events. For example, if a major concert like Jennifer Lopez is coming to Budapest, hotels could raise rates early, but only if they know in time.
Smaller hotels face unique challenges: in the low season they have too many empty rooms and in the high season, they don’t have enough capacity. Unlike chains, they don’t have big marketing budgets and that’s where working with a wholesaler can help. And of course, we cannot forget the real game-changers, the online reviews. Today, guests care far more about review scores than star ratings. Travel agencies usually say that a well-reviewed three-star hotel can easily outperform a poorly rated four-star. Service quality, cleanliness, and staff friendliness matter more than we think.
Good travel agents also play a role. They know which properties consistently deliver and match them to the right clients. At G2, we work with a smaller, curated portfolio so agents can navigate options more easily. That personal touch and local knowledge are what set good agents apart, especially for markets like the US, Japan or Germany.
Interestingly, some markets even have strict standards, for example, Germans won’t book hotels without health and safety certifications. So, being prepared and well-reviewed can give small hotels a real edge over bigger ones.
We have a strong client base in Asia, as most of our group bookings come from countries like Japan, South Korea, and emerging markets such as Thailand, Indonesia, and India. While markets like Japan and South Korea are more mature, other countries in the region are still in the early stages of outbound travel, and there’s a growing interest in visiting Europe.
For instance, Eastern Europe is usually perceived as safer than Western Europe by some Asian travellers due to lower migration levels and fewer concerns about safety. Countries like Hungary also tend to be more open to economic relationships with Asian countries, especially China. Currently, there are 21 direct flights between China and Hungary each week, which is great news. It’s also relatively easy and affordable to fly to Budapest, and getting a visa is more straightforward.
So yes, we’re expecting significant growth from China and Asia in general, and we’re actively investing in building exclusive partnerships with clients from that region. Of course, we continue to work with key markets like the US and UK as well. G2 is based in the UK, so we have strong relationships there, as well as in Italy and Spain - both of which remain important source markets for Hungary.
Yes, definitely. Asian travelers often have very specific preferences, and travel agents from those regions are already aware of which hotels can accommodate them well. For example, they know which hotel in Budapest offers Chinese soup at breakfast, which is something many Asian guests appreciate. They also tend to start their day early, aiming to see and do as much as possible, so early breakfast hours are a plus.
Room features also matter. As I mentioned earlier, Japanese travelers, in particular, prefer bathtubs over showers and often request twin beds instead of doubles. Understanding these preferences can really improve guest satisfaction.
When it comes to US travelers, they are really different from Asian travelers, and we often see a different pattern in their decisions. For example, if a receptionist offers a room upgrade, they’ll more often accept it. Also, they tend to appreciate added value and are willing to pay for extras, like a bottle of wine or room service, because they have limited vacation days, so they try to make the most out of it.
Parking is another important factor, especially during high seasons like December, when guests from neighboring countries such as Serbia or Austria often drive to Budapest for the Christmas markets. For them, having affordable and convenient on-site parking is a key decision point when choosing a hotel.
I find it interesting that many hotel managers still focus mainly on ADR. They don’t always consider other strategic benefits of working with wholesalers, like longer booking windows, lower cancellation rates, or diversification of distribution. These are things that can really help lower dependency on OTAs. For that, hotels need strategic partners like wholesalers. Right now, many hotels are getting 60-70% of their bookings from one OTA alone, and they know they can’t afford to stay that dependent.
Of course, the wholesale landscape has changed in the past years, and many players that used to dominate the space have either disappeared or consolidated. Where once you had a long list of wholesalers, now you can practically count the key players on one hand. Then there are regionally strong players like G2 Travel, while some companies have shifted their focus more toward group travel.
Today, unless a wholesaler comes with a truly unique strategy like G2 has, it’s hard to compete with the dominance of OTAs. Some wholesalers are trying to convince hotels about the risks of overreliance on OTAs, positioning themselves as a better alternative. At G2, we don’t take that approach. We don’t try to grow by discrediting others. That kind of approach doesn’t sit well. I think growth should come from offering real value, not tearing others down.
Hotels are navigating a rapidly changing landscape. Traditional ways of selling rooms are shifting, and relying solely on OTAs is no longer ideal. I think the key is diversification. Hoteliers need to spread their distribution strategy across multiple channels and that includes wholesalers, groups, OTAs, and direct business. Because you never know which market might be affected by political changes, economic shifts, or travel restrictions. Having a broad network helps ensure stability and flexibility.
Wholesalers, in particular, have proven resilient. Years ago, many predicted they’d fade away, but that hasn’t happened. In fact, wholesalers have adapted, and hotels that already work with wholesalers understand their value. If you ask them honestly, many will tell you they wouldn’t cancel a contract just because of short-term performance.
This is a long-term relationship. Markets go up and down, and having reliable partners is crucial.
As Cristina highlighted, travel wholesalers remain a vital part of a hotel distribution strategy, especially for properties looking to diversify, improve forecastability, and attract international guests. While working with wholesalers may require a bit more flexibility on prices, it has a lot of benefits, such as longer booking windows and lower cancellation rates.
We hope this discussion brought up some interesting points and that you, as a hotelier, have gained valuable insights into the role and relevance of travel wholesalers in today’s market. If you’re looking to strengthen your distribution mix, now is a great time to explore this channel further.
SabeeApp has recently integrated with a partner that enables SabeeApp’s Channel Manager to connect to G2's network, meaning your PMS can be directly connected to the wholesaler market. If you’re interested in learning more, feel free to contact us!