B2C (Business to Consumer)

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B2C (Business to Consumer)

What is the meaning / definition of B2C in the hospitality industry?

Known as Business to Consumer/ Customer is a term that refers to the sale of products or services to individual customers and/or guests to create a profit. B2C is the most common way that hotel sales are made, which is why it is important to target this demographic when advertising and promoting a hotel.

B2C consumers are independent and/or leisure guests and are more likely to stay for longer periods of time, spend more on extra services and pay for room upgrades. More B2C consumers also book rack rates than B2B guests, and do not require a corporate or business booking discount. Business to Customers guests do not have extra negotiated terms when staying at a hotel like a B2B hotel guest contract. These guest’s finical transactions are easier and done swiftly upon check out, where in B2B, the payments may come at the end of the year or month after multiple people, booked through the business, have left.

On the other hand, B2C guests are not always guaranteed, while B2B hotel booking contracts are. To attach B2B guests, higher marketing budgets might be required to generate sales and leads for a hotel. B2B are more product driven and require more energy for a single sale.

See also:

  • B2B
  • Synonyms

  • Business to Consumer

Synonyms: Business to Consumer

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