Tourico Holidays this week said it agreed to prepurchase more than 90,000 hotel room nights at two Hyatt-branded properties in Paris and New York, as the online travel wholesaler looks to lock in room rates for its travel agent clients during the next 20 months.
Closely held Tourico prebought 47,000 room nights at the Hyatt Regency Paris Etoile through February 2017, indicating that the wholesaler planned to sell about 80 rooms a night on average at the 950-room hotel. Tourico sells 2,100 rooms a day through its 425 supplier hotels in Paris and said Paris room-night bookings are up 36% this year.
Tourico also prepurchased 44,000 room nights at the Grand Hyatt New York through March 2016, indicating an average booking of about 160 rooms a night at the 1,306-room hotel. Tourico sold more than a half-million room nights in New York last year.
Lauren Volcheff, vice president of North American sales and marketing at Tourico, said the room-night figures represented “very large blocks” and said the company typically prebuys between 2,000 and 20,000 room-nights per year from its hotel partners.
“Both hotels meet a short list of criteria that makes them perfect for a prebuy agreement: amazing location in areas tourists love, a lot of rooms for sale and a true partner at the hotel and corporate level,” Volcheff said.
Tourico, which generates more than $1 billion in annual revenue, continues to try to bring down its costs by buying inventory from travel suppliers in bulk. The company, which has 4,900 travel-professional clients in 100 countries, said in March that it would start prepurchasing tickets for activities and attractions such as Las Vegas’ High Roller observation wheel, adding that the discounted rates would allow it to pass on savings to its travel-agent customers.
Hyatt Regency Paris Etoile was formerly the Concorde Lafayette before Hyatt reached an agreement to rebrand the property in 2013. The Grand Hyatt New York completed a $130 million renovation in late 2011.
About Tourico Holidays
Tourico Holidays is a leading global travel distribution company that contracts directly with travel providers, such as hotels, flights, cruise lines, attractions, car rentals, vacation homes and more. Tourico Holidays works on a high-volume, wholesale model to broker this inventory to over 4,900 clients in 100 countries using proprietary technology.