The travel industry constantly aims at enhancing the experience of tourists and travelers. Therefore, it has been divided into modules to improve the travel planning and booking process. The success of travel agencies and travel business can be attributed to travel portal development companies that make it possible for the travel industry to taste success and rapid growth. As a result, the travel industry which operated on a B2C model has now been divided into different models such as B2B, B2C, B2B2C, etc.

 

To understand the differences between the B2B and B2C models and find out which model is more profitable, let’s first understand what are B2B and B2C travel booking portals.

 

What is B2B travel booking portal?

 

The Business-to-Business (B2B) travel booking portal, as the name suggests, connects two businesses directly. For instance, when a business sources raw materials from another company for production, it is a B2B model. Similarly, in a B2B travel booking portal is used by travel businesses that sell their travel services to sub-agencies and other travel agencies. Under the B2B travel agency model, travel agencies don’t sell their products and services to end customers but to other travel businesses that are connected directly with end customers. An example of a B2B model is when a hotel sells its inventory to online travel agencies who further offer the hotel rooms inventory to their customers who are planning a vacation.

 

A B2B travel booking portal is suitable for travel companies who have a huge inventory of travel products or access to inventory from third party suppliers, travel agencies, and destination management companies (DMCs). Using a B2B travel booking portal, these travel businesses can add sub-agents, manage balances, set their markups, and manage other policies. The sub-agents can also set their markups to the price offered by the B2B travel agencies and sell the travel products directly to their customers.

 

What are the benefits of B2B travel booking portal?

A B2B travel booking portal provides the following benefits to the travel agencies, DMCs, and travel companies using the model:

  • B2B travel software offers a dashboard to analyze the performance of sub-agencies and calculate their commissions.
  • It helps manage and control markups, commissions of sub-agents, deals, discounts.
  • B2B travel booking portal aids in the management of agent credit, pricing, and revenue.
  • A B2B travel software offers access to real-time online bookings and availability of inventory.

 

What is B2C travel booking portal?

 

The Business-to-Consumer (B2C) travel booking portal directly connects travel businesses with the end customers. Most of the eCommerce sites such as Amazon and Flipkart follow the B2C model. In the travel industry, online travel agencies such as Expedia and Booking.com that sell travel products, services, and packages directly to their customers use a B2C travel booking portal.

 

Due to Covid-19 these days, You will get people wearing face mask and feel threatened from Coronavirus. Thus, B2C travel booking portals are impacted very much.

 

A B2C travel booking portal is widely used across the global travel market which provides a user-friendly platform to customers who can also make their travel booking as a guest. It is an online booking software that enables customers to search and book flights, hotels, packages, sightseeing, and transfers.

 

What are the benefits of B2C travel booking portal?

A B2C travel booking portal provides the following benefits to the online travel agencies using the model:

  • It is compatible with mobile and web platforms.
  • Sends automated tickets via email to customers.
  • It provides multi-lingual and multi-currency support.
  • The OTAs can change their mark-ups whenever they require.
  • OTAs can provide offers and discounts to increase sales.

 

What are the major differences between B2B and B2C travel booking portal:

 

  • Emphasis: A B2B travel booking portal focuses on the business interests of travel companies, travel agencies, and DMCs and the interaction between businesses. B2B travel booking portal is, therefore, a complex application.

A B2C travel booking portal focuses on the satisfaction of its customers’ needs, transactions, and travel behavior.

  • Order and transactions: In a B2B travel booking software, orders and bookings are repeated, therefore, transactions are the same. On the contrary, in a B2C travel booking software, the transactions and orders may differ as they are dependent on customers. B2B and B2C orders go in the opposite way.
  • Search functionality: The searches in B2C travel software are based on a specific customer and catalog. On the other hand, the search functionality in B2B travel software complements the catalog based applications and travel requirements.

 

Which is more profitable: B2B vs B2C?

 

Although profitability highly depends on your business plan, revenue model, and marketing strategies, a B2B travel booking portal seems to be more profitable than a B2C travel booking software.

This can be explained with an example below:

 

B2C travel portals are largely dependent on third parties for their travel inventory. For instance, an OTA such as MakeMyTrip relies on third-party APIs and GDS suppliers to gain access to the inventory for hotel rooms, rental cars, transfers, flight tickets, etc. Their customers are able to search and book their travel through this inventory. Getting inventory from third parties increases the overall holiday packages for customers who have many other options to find the cheapest travel packages. This also makes competition for B2C travel agencies more intense.

 

On the contrary, A B2B travel booking portal leverages multiple profit-making channels such as earning commissions from multiple sub-agencies. B2B travel businesses are not dependent on the changing behavior and demands of customers and therefore, don’t face stiff competition and a risk of losing customers to competitors as in the case of B2C travel businesses.