New hotel high-traffic marketplaces

March 18, 2021

New hotel high-traffic marketplaces

The time has changed. And it will continue changing in various areas, especially in the hotel industry. Today, Internet hotel reservations contribute significantly to increase the revenues of hotels around the world. These reservations are made through various channels. On the one hand, the channel proposed by the “big players” in the market, such as Airbnb, Booking, HomeAway, TripAdvisor and Expedia, to name a few. On the other hand, we have direct contracts with hotels as a sales channel. Finally, to these “conventional channels”, to call it somehow, eBay is added, a powerful player that is stepping increasingly strong in the hotel world.

In the universe of online reservations, everything happens immediately. And that is the key. Guests decide on the dates of accommodation, agree on the rules proposed by each platform, press a button and make a payment. With pros and cons, instant reservations have become a prevalent option for hotel owners and guests who offer their services directly or do, so on one of the platforms mentioned above.

As we said, they all have pros and cons: high competition, they are known, pricing policy and many other issues. What if we tell you that a market is also known and little explored but has significant advantages and almost no disadvantages?

eBay offers this little-explored market with great potential. With 182 million active buyers, eBay enables hotel deals to have enormous potential and complete visibility.

Why eBay?

Founded in 1995, eBay was one of the first online marketplaces, offering different types of items that are auctioned online. Since then, it has been a central player in the online market, being the second-largest provider in the United States, behind Amazon. In the last decade, eBay has leaned more toward fixed “buy it now” price lists, which comprise most of its sales.

eBay is an essential platform for buying and selling electronics, cars, clothing, collectables, and much more. This includes the hotel industry. On eBay, you can purchase accommodation and tour packages and many more services. With the help of a different system like CultBay, tourist services can be integrated into a complete booking platform. And it can be done with room and hotel descriptions, amenities, room availability calendar, images, and much more.

How does it work?

With CultBay, we are making eBay a complete sales channel, seamlessly integrating it into the existing hotel infrastructure. This makes eBay an ideal complement to your sales mix and shouldn’t be missing from any hotel.

Accommodation coupons are created first, then an offer is completed, and coupons are offered, which are valid for a maximum of 3 years and are subject to availability.

Then comes integration. All data is synchronized in real-time between eBay and the hotel through the PMS and the Channel Manager connection. Through this system, the availability calendar is automatically updated. When the daily price reaches a certain threshold, the quote closes automatically. Thanks to this mechanism, nights are prevented from being booked on eBay that may be better sold on other channels.

Good to know that with eBay, you can reach more than 182 million active buyers in 14 international markets. Depending on the hotel’s size, an average annual turnover of 10,000 to 50,000 euros can be achieved. Of this, 40% of this comes from auctions, and 60% from fixed price offers. The costs are also manageable: the listing is free in Britain, and the sales commission is only 6%.

The purchase of the voucher and the payment is made through eBay. The buyer receives an email with the coupon and a link that leads to a reservation page, where the coupon can be redeemed. The buyer selects an arrival date and books the stay. Thanks to this system, the availability calendar is continuously synchronized with the hotel to make it a real-time reservation. The booking page is customizable, meaning it can also be used for upsells and personalized offers based on the guest’s preferences. Additionally, newsletter subscriptions and loyalty program memberships may be offered.

Finally, the hotel receives payment immediately after purchasing the offer on eBay. It should be noted that the purchase can be cancelled within 30 days if the coupon has not yet been redeemed. Once the reservation is made, cancellation is no longer possible.

What are the advantages of starting selling on eBay right now?

eBay is one of the largest online trading platforms in the world. If you offer your hotel services on eBay, you have the possibility of reaching more than 182 million active buyers around the world. A great advantage is the commissions: in the United Kingdom, they are 6%, in Germany, they are 9%, and in the United States, they are 10%. Also, this system is perfect for covering hotel rooms in low seasons.

In this high-profit scenario, sold offers are paid immediately, and payments are transferred directly to your bank account. It’s important to know that buyers can only check out within 30 days and only if they haven’t booked yet.

What we do at CultBay

CultBay GmbH is a technical service provider that, through innovative actions, enables hotels and accommodation providers to integrate 14 eBay marketplaces as a fully functional sales channel into their distribution mix. CultBay is part of Cultuzz Digital Media GmbH, which has over 20 years of experience providing technical services for the hospitality industry. CultBay and its innovative service are here to stay. And there are already hundreds of clients who trust the platform and join this new reservation system with their hotels through coupons and special offers. The alliance with eBay enables CultBay to work with the fixed price bidding and auction formats.

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