New Hotel Distributor Courts U.S., European Agents

A new online hotel distribution platform is courting travel agents in both Europe and the United States with what it says are “undoubtedly” the lowest rates. 

The business model at fastpayhotels.com is simple: The site offers only nonrefundable pre-paid rates.  

Such rates usually are the lowest prices offered online, and they are often even lower than traditional tour-operator rates, according to fastpayhotels.  

Hotels have been struggling to woo customers to their own websites and away from indirect channels, particularly online travel agencies. The large OTAs are in a position to set terms that are not always advantageous to hotels.  

But because fastpayhotels sells only nonrefundable rates, allowing no changes or cancellations, it can pay the hotel at the time of booking for a reservation up to 390 days in advance without risk.  

If its platform is perceived as hotel-friendly, the company believes hotels will be more likely to offer more and better rates to travel agents, helping them to compete.  

Fastpayhotels, based in Palma de Mallorca, Spain, was launched this year by Alex Gisbert, former chief operating officer at Low Cost Travel Group, which operates lowcostbeds, a trade-only accommodations site, and lowcostholidays, a consumer-facing brand that offers vacation packages. He also worked at Expedia as director of online partner marketing for Europe, the Middle East and Africa.  

The website, which does not intend to serve consumers, accepts payment in U.S. dollars and euros.