B2B (Business to Business)

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B2B (Business to Business)

What is the meaning / definition of B2B (Business to Business) in the hospitality industry?

Known as Business to Business, a term that refers to the sale of products or services from one business to another.

Examples of B2B are outsourcing hotel staff from a company, wholesale food purchasing, hotel maintenance performed by an outside company and company hotel bookings. Rather than B2C, B2B can refer to either the generation of a sale from a company or the hotel purchasing a service or product from another company.

Business to Business is important in a hotel industry in order to maintain facilities, keep up-to-date on industry upgrades, generating sales and other services that could improve the hotel’s building(s), reputation and management. Another positive factor is that hotel reputation from local businesses can be earned quicker, rather than individuals and individual sales through B2C. On the other hand, unlike Business to Consumer, B2B usually involves contracts and may involve legal counsel in negotiating of terms or prices. Sales generated from B2B, depending on the amount of projected sales, could result in the selling of rooms at a discounted price.

See also:

  • B2C
  • Synonyms

  • Buisness to Buisness

Synonyms: Business to Business

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