The relationships that online travel agents like Expedia and Hotels.com have with hotels can be described as love-hate. On the one hand, hotels place a significant amount of trust in these distribution channels for the processing of bookings. Bookings made through online travel agencies (OTAs), on the other hand, result in lower profits for hotels because these bookings require the hotels to pay commissions to the OTAs.
If they had their way, all reservations would be made directly through the hotels' own websites or mobile apps rather than over the phone. Because the hotel is not required to pay commissions on purchases, it is able to upsell and cross-sell its services during the booking process without having to worry about compensating the online travel agency for their efforts.
In order to ensure that they are getting the most out of the business that is booked directly with them, the hotels have implemented a multi-pronged strategy to achieve this goal. To begin, the lowest-price promise was utilised to convince clients that the rates that were posted on hotel websites were the lowest available rates; as a result of this guarantee, there was no need to waste time browsing the OTA sites for lower rates. The second time that loyalty programmes were linked to direct bookings was this past week. Bookings made through online travel agents (also known as OTAs) do not result in the accumulation of loyalty points. However, in order to receive the discount on room rates, members of the loyalty programme must make their reservations directly with the hotel.
I'll explain my concept using the following example: You are going to be travelling to a different city, and you are going to require a somewhere to stay. It's possible that you have a soft spot in your heart for a specific hotel chain. Is this a reservation made directly with the hotel? If that's not the case, what gives?
You might have fallen for the trap laid by third-party online travel agency (OTA) websites like Expedia or Hotels.com, which led you to believe that if you booked directly with the hotel, you would be able to receive a better price or a better deal. It's not your fault; you're simply one of the hundreds of people who fell prey to the persuasive advertising campaigns that they ran. Don't beat yourself up over it.
We will explain why making direct reservations with hotels is always the best choice to consider. The advantages of interacting directly with the hotel far outweigh any savings you would anticipate from making your reservation through an online travel agency (OTA).
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There are several advantages to making your hotel reservation directly with the property, some of which are listed below.
Better Prices
The majority of people are aware that online travel agencies, also known as OTAs, are not "discount sites." The price that is displayed for each room must be the same regardless of where it is purchased, as this is a requirement established by an agreement between hotels and online travel agencies. If you are interested in staying at that hotel, the base rate that you pay on Hilton.com or Booking.com will be the same.
So, why do all of the online travel agency (OTA) advertisements claim that they have better rates than their rivals? Because of the rate parity rules, each one of them can argue that they offer the "best" price because they all charge the same amount.
You must make your reservation directly with the hotel if you want to receive the best possible rate. The percentage of loyal customers is crucial. Members of the loyalty programmes of many different hotel brands are eligible for discounts on room rates. These more affordable prices are exempt from price parity agreements due to the fact that they are sold to "closed user groups." To put this in the simplest terms possible, this indicates that in order to take advantage of these offers, you are required to be a member of the program. The good news is that enrolling in these programmes does not cost anything, and you are not required to make any kind of financial contribution in order to take advantage of the discounted rates that result from participation.
Prices Only Available to Members
There are special rates available to hotel members, which are typically a few dollars less expensive than the standard nightly rate.
IHG Rewards Club, for example, provides its members with an exclusive discount that is a few dollars cheaper than the rate available to those who are not members and that is sometimes also cheaper than the rate offered by third parties.
The Holiday Inn Express Orlando at SeaWorld offers a rate of $106.82 per night that is only available to members. If you are not a member of IHG, the cost of the same room is $109 per night when booked directly, as well as when booked through Priceline and Hotels.com.
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Fees for Making Reservations and Commission
Hotels are required to pay a commision that ranges from 10–25 percent of the total booking value when guests make reservations through online booking services. If you phone the hotel directly, the hotel can avoid paying commissions or other fees, and they may be willing to give you a discount as a thank you for booking directly with them.
If you have never attempted this before, try phoning or emailing the hotel directly and requesting a better cost. If you are persistent, you may be able to secure a discount.
There Are No Cancelled Reservations
When consumers use online travel agencies (OTAs), one of the most common complaints they have is that the hotel they stay at can't find their reservation when they get there. It's possible that something similar has happened to you. If that's not the case, just try to fathom how frustrating it would be!
Unfortunately, this is something that frequently happens to travellers who make their reservations using online travel agencies (OTA). When you make a reservation through a third-party website like Priceline or Travelocity, rather than the hotel, you become a customer of the online travel agency (OTA). Sometimes there are no hiccups, and the online travel agency (OTA) successfully transfers all of your information to the hotel. But what should one do if they misplace something? It is inevitable. Way too frequently.
By reserving your stay directly on the hotel's website, you can sidestep the need to take this risk. Only the hotel will have access to your personally identifying information as well as the specifics of your credit card, so you won't have to worry about your reservation being misplaced.
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Terms and Conditions That Are Adaptable
Every single one of us has, at some point, been forced to make adjustments to our travel arrangements at the eleventh hour, which has ultimately led to our trips being delayed or cancelled. If you make your reservation through an online travel agency, you will not be eligible for a refund (OTA). Because most of these booking sites adhere to a no-refund policy, you won't be able to cancel or make changes to your reservation on most of them.
When you make your reservation directly with a hotel, you'll find that the staff is more accommodating and aware of your needs. The hotel is aware that unexpected delays and cancellations may occur. With the assistance of an online travel agency, individuals who do not like to interact with OTA customer care will find that changing their reservation times or cancelling their bookings is made much simpler and more straightforward (OTA). If you make your reservation directly with the hotel, you will have greater leverage in the event that you are unable to receive a refund for your stay. In this case, you will be able to negotiate a trade-in of the cancelled room for another stay at the same hotel.
Do you have any special plans during your stay?
Hotels will make every effort to accommodate your special day, such as your wedding night, anniversary, or birthday, to the best of their abilities. However, if you made your reservation through a third party, you should not expect that your request has been communicated to the hotel.
It's possible that hotels won't offer certain services or amenities to guests whose reservations were made through a third party because the hotels want to reduce the amount of money they have to pay in fees or commissions to the booking sites.
Do you wish to modify or alter your reservation?
If you made your reservation through an online booking site, the hotel might not allow you to advance or postpone your stay. Instead, they might ask you to make the necessary changes on the booking site where you originally made your reservation. This is because there are situations in which you might want to change the date of your stay. It is possible that you will be required to pay a higher rate for the new date in some circumstances.
If, on the other hand, you have booked your stay directly with the hotel, then they will be pleased to make such changes subject to availability and, more significantly, they won't charge you any additional fees or subject you to any additional hassles, limitations, or other restrictions.
Cancellations, as well as Fees for Not Showing Up!
In the event that you need to cancel your reservation and you do not do so during the period during which cancellations are provided free of charge, then the online booking sites, also known as OTAs, will not grant you a free cancellation because their cancellation policy is very stringent.
If, on the other hand, you have made your reservation through the hotel's own website, then the hotel may, under certain circumstances, waive the cancellation cost. It is also possible for hotels to modify the cancellation fee or deposit that you have already paid for any future stays that you have booked with them.
Better Rooms, Better Service
Guests who make their reservations directly with the hotel are given priority when it comes to things like room assignments and any special requests they may have. Therefore, making a request for a room on a higher floor or selecting whether you would like one or two beds is simpler to organise in this manner. When you book through an OTA, on the other hand, you have a greater chance of being assigned a room that is equipped with an ice maker.
If you book your stay through the hotel's website, you will have the opportunity to make any special room requests either at the time of booking or once you have arrived at the hotel. Every single hotel room should have at the very least a little refrigerator. Ask if you're unsure. Are you seeking for a room that is located a significant distance away from the elevator? If you deal with the hotel on your own, you will have a greater amount of control over what it is that you ask for, which will increase the likelihood that you will obtain what it is that you want.
Hotels often only make a certain amount of their rooms available for booking through third-party services. Hotels often reserve the most desirable and diverse rooms for themselves so that they may continue to generate revenue from room sales. In older buildings, where the rooms (and people, too) were smaller, this can make a major difference, especially when there is a substantial variation in the normal room size. If you do some research online, you can often find out what kind of room can be associated with renting through a third-party site, such as this little room in Boston from Priceline.com.
On occasion, the hotel's guests are given access to the suites and facilities that are considered to be its most opulent. If you need to buy a breakfast package, parking, or even a bundle of tickets to local attractions, it may be more cost-effective to reserve a room at a hotel.
It's possible that you can get these bundles from other websites as well. There is a possibility that the price will change.
When you book directly with the hotel, you will not only receive a complimentary breakfast, but you will also have the opportunity to purchase additional services. There is a trend towards increased discrimination among hotel WiFi service providers. Guests who make their reservations through an online travel agency rather than the hotel itself can be subject to an additional cost.
If you really want the greatest room and service, your best bet is to make your reservation directly with the hotel.
Points for both Loyalty and Rewards
Do you want even greater service to your customers? Participate in the hotel's membership programme. Hotels have a lot of affection for their loyalty programme members, and they won't hesitate to show it. At the time of check-in, many hotels provide their frequent customers with complimentary credits that can be used on meals and beverages. You will also have the opportunity to receive complimentary accommodation upgrades, provided that the hotel is not completely booked. Some hotels even provide favoured guests with access to exclusive lounge spaces stocked with snacks and drinks on an unlimited basis. Who doesn't like being "prefered!"
If you book your stay through the hotel's official website, rather than through a third-party site, you may be eligible for additional rewards points. This is the case even if you pay for your room with cash. In contrast to frequent flyer programmes offered by airlines, which provide points for each and every flight, the policies of hotels are much stricter.
Even if you find a better offer or pay the same price on a website operated by a third party, the fact that you are not collecting points can end up costing you more money in the long run. You should make your reservation directly with the hotel if you wish to earn reward points.
There are a number of third-party websites, such as Expedia and Hotels.com, that each offer their own rewards programme that gives users the opportunity to earn free hotel stays.
In addition, hotels frequently provide loyalty points as well as additional incentives for reservations that are booked via the hotel's website. You can earn points at each stay, and then use those points to get free nights at participating hotels on future vacations.
In addition, as was mentioned before, loyalty members are granted access to the industry's most affordable room prices. Having the awareness that there is really no valid excuse for not enrolling in one of these programmes. Better yet, join them all! That way, regardless of where you choose to stay, you'll always get the best possible rates.
When Will It Be More Cost-Effective to Book Hotels Via Third-Party Websites?
There are a few scenarios in which utilising a third-party website to book a hotel room results in a savings:
- Last-minute bookings
- Deals With a Mystery
- Travel packages
- Reservations that cannot be cancelled at any time
- Local hotels
- Hotwire and Priceline Express Deals are currently available.
When you order a Hotwire or Priceline Express Deal, for example, it is possible that booking a hotel room through a third-party website will save you money. The fact that you won't find out the name of the hotel until after you've paid for it is the sole drawback to this option.
Priceline asserts that customers can save up to sixty percent by purchasing one of their Express Deals. If you wait until the last minute to make your reservation, you might save up to sixty percent on Hotwire Hot Rates. When you want to reserve a room for the same day or within the next few days, it is in your best interest to look into third-party mystery deals because this type of booking makes it simpler for hotels to reduce the price of unoccupied rooms.
You can save money by reserving in advance using mystery deals, but the best way to save money is to take advantage of same-day deals as they become available. Even if you don't collect hotel loyalty points, it may be worthwhile to book a "today only" offer in order to take advantage of the potential discounts.
Keep in mind that it is not possible to back out of mystery deals.
Spending the Night at a Local Hotel
Hotels that are locally owned and operated sometimes have lower rates than national hotel chains but are nonetheless just as pleasant. When staying at a hotel that is part of a chain, you can anticipate having the same experience each time, and you can also anticipate paying extra for the consistency.
In order to entice guests who are apprehensive about staying in "unfamiliar surroundings," local hotels can offer rates that are marginally more attractive than those offered by their rivals.
Even though you might not be able to earn loyalty points at independent hotels, you can still get free hotel nights by booking through a third-party website like Expedia or Hotels.com, both of which provide free hotel nights once a certain number of stays have been completed.
Travel Packages
In addition, many hotels now offer vacation packages that save money by bundling services such as airfare, hotel stays, and vehicle rentals. You can have an advantage if you book your trip through a third party because certain hotels only work with certain airlines to provide travel packages.
It is now feasible to book any airfare in conjunction with any hotel by using a third-party travel site. If you enjoy having this degree of freedom and are aware that purchases of packages are typically non-refundable, you may find that the savings are more than worth it.
You should still calculate the cost of each trip expense individually in addition to comparing the hotel rate included in the package to cancelable nightly prices offered by a third-party site as well as the hotel's own website. This is because package offers are typically non-refundable.
Journeys to Foreign Lands
When it comes to accommodations, just because a hotel is located in another country does not indicate that it offers the best deal. If you are looking for a place to stay outside of the country in which you now reside, it is possible that the only locations of chain hotels are in major cities. A hotel in the neighbourhood can be a better choice if you know where to look for one.
You can make reservations at international hotels through the same third-party booking services that you use to look through listings for hotels in the United States. Are you planning a trip to Asia? You may find hostels, in addition to both local and international brands, all in one handy spot by using Agoda.
It is possible that you will find it more convenient to use websites run by third parties when travelling internationally as opposed to the hotel business in the United States.
Get away from websites such as Expedia and Hotels.com, as well as other websites much like them. When you book directly with the hotel, you can rest assured that you will receive the best possible room, cost, service, and overall experience.
It is fair to utilise third-party booking services in order to find out what hotels are available in various places and at what prices; nevertheless, that should be about all that is expected from these sites. Direct booking is recommended over indirect booking for a number of reasons, including the possibility of receiving preferential treatment and having direct redress in the event that something goes wrong.
It is not always cheaper to book a hotel room through a third-party website than to travel to the hotel itself and make the reservation. There is a growing trend in the hospitality industry to show appreciation to repeat guests by instituting loyalty programmes at hotels. Shopping on third-party websites is likely to be your best option if you are looking to take advantage of last-minute offers or if you are not particularly loyal to a particular brand. When looking for a hotel during your upcoming trip, keep these helpful hints in mind so that you can reduce the amount of money you spend.
Conclusion
It is possible that booking a hotel room through a third-party website will save you money. Hotwire and Priceline Express Deals are currently available. You can save money by reserving in advance using mystery deals, but the best way is to take advantage of same-day deals. Many hotels now offer vacation packages that save money by bundling services such as airfare, hotel stays, and vehicle rentals. You can make reservations at international hotels through the same third-party booking services that you use to look through listings for hotels in the United States.
Get away from websites such as Expedia and Hotels.com, as well as other websites much like them. Direct booking is recommended over indirect booking for a number of reasons. Shopping on third-party websites is likely to be your best option if you are looking for last-minute offers.
Content Summary
- When Will It Be More Cost-Effective to Book Hotels Via Third-Party Websites?There are a few scenarios in which utilising a third-party website to book a hotel room results in a savings:Last-minute bookings Deals With a Mystery Travel packages Reservations that cannot be cancelled at any time Local hotels Hotwire and Priceline Express Deals are currently available.
- When you order a Hotwire or Priceline Express Deal, for example, it is possible that booking a hotel room through a third-party website will save you money.
- The fact that you won't find out the name of the hotel until after you've paid for it is the sole drawback to this option.
- Priceline asserts that customers can save up to sixty percent by purchasing one of their Express Deals.
- If you wait until the last minute to make your reservation, you might save up to sixty percent on Hotwire Hot Rates.
- When you want to reserve a room for the same day or within the next few days, it is in your best interest to look into third-party mystery deals because this type of booking makes it simpler for hotels to reduce the price of unoccupied rooms.
- You can save money by reserving in advance using mystery deals, but the best way to save money is to take advantage of same-day deals as they become available.
- Even if you don't collect hotel loyalty points, it may be worthwhile to book a "today only" offer in order to take advantage of the potential discounts.
- Keep in mind that it is not possible to back out of mystery deals.
- Spending the Night at a Local HotelHotels that are locally owned and operated sometimes have lower rates than national hotel chains but are nonetheless just as pleasant.
- When staying at a hotel that is part of a chain, you can anticipate having the same experience each time, and you can also anticipate paying extra for the consistency.
- In order to entice guests who are apprehensive about staying in "unfamiliar surroundings," local hotels can offer rates that are marginally more attractive than those offered by their rivals.
- Even though you might not be able to earn loyalty points at independent hotels, you can still get free hotel nights by booking through a third-party website like Expedia or Hotels.com, both of which provide free hotel nights once a certain number of stays have been completed.
- In addition, many hotels now offer vacation packages that save money by bundling services such as airfare, hotel stays, and vehicle rentals.
- You can have an advantage if you book your trip through a third party because certain hotels only work with certain airlines to provide travel packages.
- It is now feasible to book any airfare in conjunction with any hotel by using a third-party travel site.
- If you enjoy having this degree of freedom and are aware that purchases of packages are typically non-refundable, you may find that the savings are more than worth it.
- You should still calculate the cost of each trip expense individually in addition to comparing the hotel rate included in the package to cancelable nightly prices offered by a third-party site as well as the hotel's own website.
- This is because package offers are typically non-refundable.
- Journeys to Foreign LandsWhen it comes to accommodations, just because a hotel is located in another country does not indicate that it offers the best deal.
- If you are looking for a place to stay outside of the country in which you now reside, it is possible that the only locations of chain hotels are in major cities.
- A hotel in the neighbourhood can be a better choice if you know where to look for one.
- You can make reservations at international hotels through the same third-party booking services that you use to look through listings for hotels in the United States.
- Are you planning a trip to Asia?
- You may find hostels, in addition to both local and international brands, all in one handy spot by using Agoda.
- It is possible that you will find it more convenient to use websites run by third parties when travelling internationally as opposed to the hotel business in the United States.
- Get away from websites such as Expedia and Hotels.com, as well as other websites much like them.
- When you book directly with the hotel, you can rest assured that you will receive the best possible room, cost, service, and overall experience.
- It is fair to utilise third-party booking services in order to find out what hotels are available in various places and at what prices; nevertheless, that should be about all that is expected from these sites.
- Direct booking is recommended over indirect booking for a number of reasons, including the possibility of receiving preferential treatment and having direct redress in the event that something goes wrong.
- It is not always cheaper to book a hotel room through a third-party website than to travel to the hotel itself and make the reservation.
- There is a growing trend in the hospitality industry to show appreciation to repeat guests by instituting loyalty programmes at hotels.
- Shopping on third-party websites is likely to be your best option if you are looking to take advantage of last-minute offers or if you are not particularly loyal to a particular brand.
- When looking for a hotel during your upcoming trip, keep these helpful hints in mind so that you can reduce the amount of money you spend.
FAQ About Accommodation
Apartment living is a simpler way of living, which translates to a happier, lower-stress life. A simpler lifestyle provides the space to figure out what matters most and the freedom to focus on these things. Some people may love fixing up their home, and that's great.
deally, the average lifespan of any concrete structure is 75-100 years. But, it is considered that the average life of an apartment is 50-60 years while of a house it is 40 years.
The top floor is the most secure out of all the levels. Thieves or other invaders will rarely make their way to the top of the building. If you're on the top, you can feel safe from people who might push into the building from the outside.
Be sure to lock the door to your apartment, whether you're at home or not, advises Dalton, and ask your landlord to install deadbolt locks (as well as a peephole on your front door). Remember to keep your windows locked as well, especially if you live on the ground floor or in the basement.
After plugging in assumptions on investment returns, maintenance costs, home appreciation and other factors, the retiree would come out ahead financially by renting for less than five years. If the retiree plans to stay longer, buying would be a better choice.
