What is a Consortium?
A Consortium is a large group of Travel Agencies (many times) driven by multinational companies joined together. Originally started to assist smaller Travel Agencies, Consortia have grown dramatically and have become major players in the travel industry. By joining Consortia, Travel Agencies can increase the effectiveness of their marketing to their customers by offering competitive rates at hotels worldwide. The Agencies may operate under one global name (like ABC Corporate Services) or may operate independently while using the Consortia relationships and tools.
According to HEDNA, a Consortium Rate is:
...a rate negotiated between a hotel company and
a Travel Agency group. Viewership of these rates in the
GDS by a TA or other GDS users is restricted and the
rate may be booked only after entry of either the
Agent's or client's authorization code.
Each program has a list of requirements and fees for participation, but the standard requirements may include:
- A minimum of 10% off the lowest single published rate
(Rack and / or Corporate)
- Rate parity amongst all programs
- Last room availability guarantee
- 10% commission
- All rates quoted are to be guaranteed for the entire year
starting from Jan 1 — Dec 31, unless otherwise noted
Benefits of Consortia Participation
Increased Visibility —
By partnering with these programs, hotels will be listed in each programs directory, website, and will have a special rate access code through the GDS. This exposure includes Agencies that book specified negotiated rates within the consortium umbrella.
Increased Revenue —
Hotels will see an increase in revenue generated through these partnerships.