Title: Why Online Booking Is Always Cheapest and You Can Get Better Room?
During my research about hotels best offers and deals, I have learned a lot about Asia and Europe. However, hotels give commissions for booking online through websites. I think that direct booking can get best rate. In old times it was correct but nowadays cutthroat, online reviews and online competition, I have discovered that online booking always gives the best price for both day and night time stay.
However I have noticed that if booking online by some websites in specific area I will get best room in hotel as guests were giving more for second-rate room. I have talked and studied these situations for owners of hotel therefore I have to explain that how it works?
Working process of online hotel bookings:-
This business model is not very surprising. When you're using Online Travel agents like booking.com, hotels.com, Priceline, Expedia or Agoda, iThe business model with online hotel bookings won't be too surprising. If you use an Online Travel Agency (OTA) such as Expedia, Priceline, booking.com, hotels.com, or Agoda, this agency has fixed booking rates from 10-25% all over the word. It is a commission of travel agencies. Hence if you want to book a room for night then USD 100 will be charged by hotel and OTA will charge the payment and send from $ 75-90 to hotel after you've checked out.
If you're booking on a website of hotel, then keep all money except small hotel fee which is used by them in outside processing system. Therefore if you will book it online or walk in with credit card or with cash, it stands to make money when you pay room rate.
Surprising€¦ Hotels offer rooms on fewer prices online!!!
With above details, you'll think that hotels offers lowest pricing to those people who visit personally with cash; however it is not true actually they get worst rates. Hotel can share required information for rate with these reviews. They know if they keep observing things such as €I have paid $ 80 online but a person who walked-in paid $ 70(cash). It can hurt them immensely. However this business would offer discounted rates to visitors who buy early as they like guaranteed revenue. It also helps to control inventory system. Hence, OTA commission is built for maintain the pricing structure because they feel happiness to be booked on discounted rates (in-advance).
Walk-Up: No bargaining power
One main reason is that hotel offer best prices to walk-ups visitors. One main reason is that they've an idea that these guests are inelastic. Just imagine that 5 hotels offering same deals along a street. Especially when you're carrying luggage, they know about the demands of guests or on which price they can bargain. It is a decent option that you quote a rate as they have to enter the bargaining amount.
However I have noticed that if booking online by some websites in specific area I will get best room in hotel as guests were giving more for second-rate room. I have talked and studied these situations for owners of hotel therefore I have to explain that how it works?
Working process of online hotel bookings:-
This business model is not very surprising. When you're using Online Travel agents like booking.com, hotels.com, Priceline, Expedia or Agoda, iThe business model with online hotel bookings won't be too surprising. If you use an Online Travel Agency (OTA) such as Expedia, Priceline, booking.com, hotels.com, or Agoda, this agency has fixed booking rates from 10-25% all over the word. It is a commission of travel agencies. Hence if you want to book a room for night then USD 100 will be charged by hotel and OTA will charge the payment and send from $ 75-90 to hotel after you've checked out.
If you're booking on a website of hotel, then keep all money except small hotel fee which is used by them in outside processing system. Therefore if you will book it online or walk in with credit card or with cash, it stands to make money when you pay room rate.
Surprising€¦ Hotels offer rooms on fewer prices online!!!
With above details, you'll think that hotels offers lowest pricing to those people who visit personally with cash; however it is not true actually they get worst rates. Hotel can share required information for rate with these reviews. They know if they keep observing things such as €I have paid $ 80 online but a person who walked-in paid $ 70(cash). It can hurt them immensely. However this business would offer discounted rates to visitors who buy early as they like guaranteed revenue. It also helps to control inventory system. Hence, OTA commission is built for maintain the pricing structure because they feel happiness to be booked on discounted rates (in-advance).
Walk-Up: No bargaining power
One main reason is that hotel offer best prices to walk-ups visitors. One main reason is that they've an idea that these guests are inelastic. Just imagine that 5 hotels offering same deals along a street. Especially when you're carrying luggage, they know about the demands of guests or on which price they can bargain. It is a decent option that you quote a rate as they have to enter the bargaining amount.