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Travelocity is cheeper than booking with Hotel. Issue?

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Winnipeg, Canada
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Travelocity is cheeper than booking with Hotel. Issue?

1)Travelocity is cheaper than booking directly with the hotel we are going to stay at. Any reason why I should not go through them and book directly at hotel?

2) Its also cheaper to book rooms with a no cancellation policy. My credit card will cover this if we have to cancel due to sickness. What are people thoughts on this. Just trying to save a little money for other things while we are on vacation

San Francisco...
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11. Re: Travelocity is cheeper than booking with Hotel. Issue?

The non-cancelable rooms can be a bit of an issue if you have to cancel for reasons other than sickness. I almost always use Priceline and Hotwire which are non-cancelable and have been burned once by not having coverage for having to cancel. So there is a bit of a risk.

It sounds like you're not using an opaque booking site such as Hotwire or PL? If so, this is a good thing because there is much less risk. If you do use Hotwire or Priceline you can still gain some insights into revealing your hotel:

http://www.hoteldealsrevealed.com

Betterbidding.com

Both are excellent resources.

But I'd try to book directly with the hotel. If you call them up and tell them what you've found online, they might match or beat it. Afterall, Hotels pay around 30% to online travel agents!

Melbourne, Australia
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for Sydney, Bargain Travel, Food and Travel
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12. Re: Travelocity is cheeper than booking with Hotel. Issue?

>>>But I'd try to book directly with the hotel. If you call them up and tell them what you've found online, they might match or beat it. Afterall, Hotels pay around 30% to online travel agents<<<

Booking direct, or least enquiring is always a sound piece of advice.

However, not all hotels offer price matching or similar offers. The reason for this is that advertising run of house inventory is deliberate and targets certain markets and demographics. Whilst they do pay commission, what the consumer often forgets is that the hotel controls the rate, and also have a pre-determined yield they want to achieve by selling via an OTA. Commissions are calculated above this, so their nett remains the same for each respective agency. The current industry average is between 12~27%.

In addition to the above, selling via an OTA reduces labour intensity. This may not be obvious to the average consumer, but when handling 500-1000 reservations per day, it has an impact on staff workload, and minimizes errors (places the onus back on the consumer). More recently, hotels have commenced utilizing automated Channel Management systems, which are integrated to their PMS, and reservations are automatically loaded onto the hotel computer system. This again is in an effort to reduce labour costs.

The final reason the hotel may say no to price matching, is to maintain a separate selling 'identity'. They want to put the message out to consumers, that booking direct offers a more premium product - even if the rate is the same, the cancellation policy could be better, they also have room types not offered via OTA, perhaps offer more inclusions etc. This is a deliberate Sales & Marketing ploy. If the rates and offers on an OTA is always better, nobody would ever contact the hotel direct. If its always better contacting the hotel direct, nobody would ever look at OTA's and their global marketing exposure impact is minimized. It's a balancing act.

13. Re: Travelocity is cheeper than booking with Hotel. Issue?

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