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Welcome to the Supply Optimization Awareness Series—where we pull back the curtain on the unglamorous but crucial decisions that separate the travel industry’s winners from its casualties. This isn’t about flashy features or marketing magic. This is about the reality of building a travel business that actually makes money.
Picture the scene: Your competitor just closed another massive funding round. Your CEO is breathing down your neck about conversion rates. Your tech team is drowning in supplier integration requests. And somewhere in a conference room, someone inevitably says those six words that make every seasoned travel exec’s eye twitch:
“Can’t we just add more suppliers?”
Here’s the uncomfortable truth nobody wants to admit: the most expensive mistakes in travel happen before your customers even see a search result. Long before anyone clicks “search hotels,” you’ve already set the trajectory for your costs, your conversion rates, and quite possibly your sanity.
Welcome to the pre-search stage—where good intentions go to die expensive deaths.
Let’s get one thing straight: “adding a supplier” is about as simple as “just having a baby.” Sure, the concept sounds straightforward, but the reality involves a small army of people, months of sleepless nights, and alarmingly high costs.
That innocent API integration? It’s actually procurement teams negotiating terms that can make anyone undomfortable, legal departments crafting contracts longer than Victorian novels, and product teams trying to figure out why this new supplier thinks a “twin bed” is the same as a “double room.”
The real numbers are sobering:
And here’s more, after you’ve connected your first 6-8 suppliers, each new addition delivers about as much incremental value as a chocolate teapot.
The overlap grows like weeds. Your conversion lift flatlines like a patient in the ER. And that “long tail” of suppliers you were so excited about? It becomes less of a competitive advantage and more like that gym membership we all want to start using next Monday.
But wait—there’s more! Every single supplier you add comes with a permanent entourage of costs that follow you around:
The Never-Ending Story Includes:
The smartest OTAs in the business—the ones with 50+ suppliers who’ve been through this pain—are now slashing their supplier portfolios by 30-50%. Not because they hate money, but because they’ve learned that sometimes less really is more profitable.
Connectivity platforms are riding on a promise to save you from integration hell. “Connect dozens of suppliers without touching your code!” they proclaim, and honestly? Some deliver on that promise.
The technical onboarding really is faster. You can get connected without your developers threatening to quit. But here’s what the marketing brochures don’t mention in bold letters: the business overhead doesn’t magically disappear.
You still need contracts (lots of them). You still need quality assurance, and you need to figure out why Supplier A calls it “breakfast included” and Supplier B calls it “complimentary morning sustenance experience.”
Those hybrid setups that look so elegant on paper—10 direct suppliers plus 40 through a platform—often create beautiful new disasters: inventory that doesn’t match, policies that contradict each other, and suppliers that underperform.
The cruel irony? Your cost-of-sale can creep up 0.5–2% of your gross booking value simply because you’re carrying dead weight suppliers that nobody has the heart to disconnect.
Here’s a reality check from retail that every travel executive should tattoo on their forearm: Costco doesn’t improve sales by doubling their warehouse size and throwing in every product they can find.
They curate. Ruthlessly.
Your search results aren’t infinite digital real estate—they’re premium shelf space. Every mediocre rate you show is elbowing out a potentially better one. Every confusing option is a small step toward your customer thinking, “You know what? Maybe I’ll just check Booking.com instead.”
The future belongs to companies that understand a fundamental shift: it’s not about owning more supply—it’s about leveraging the right supply at the right moment.
Imagine this: What if you could capture the benefits of a new supplier’s better rates or availability without the months of integration pain? What if you could inject value into your user journey only when it actually improves margin or experience, rather than just because you can?
That’s not a pipe dream—that’s the direction the smart money is moving.
Here’s where the story gets interesting. The most successful travel companies are starting to realize that the traditional “integrate everything and sort it out later” approach is like trying to solve traffic problems by building more roads. Sometimes it works, but usually it just creates more beautiful, expensive gridlock.
The winning move isn’t about having more suppliers than your competitors. It’s about having the right suppliers, configured the right way, delivering value at the right moments. Because at the end of the day, your customers don’t care how many suppliers you have integrated. They care about finding what they need, quickly and at a fair price, without jumping through digital hoops.
Get the pre-search stage right, and everything downstream becomes easier. Get it wrong, and you’ll spend years and millions trying to optimize your way out of problems you created before your first customer ever clicked “search.”
The choice, as they say, is yours. But choose wisely—your margins depend on it.
Next up: How modern platforms are rewriting the rules of supply optimization, turning overhead into competitive advantage, because the future isn’t about owning more supply—it’s about being smarter with the supply you choose.


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