Travel Industry Dictionary Find Definitions Center Rule Travel Words Start with G
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Define Merchant Model

merchant model. In the hospitality industry, a distribution strategy that uses third party web sites (or “merchants”) to sell hotel rooms or inventory, as opposed to offering that inventory through the hotel’s own web site or through travel agents. In this strategy, hotels sell inventory to the merchant at a 25% discount, considerably more than the typical 10% commission paid to travel agents.

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