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One thing not mentioned yet is that "resort fees" are basically just a way to avoid paying commission to the aggregators. The combination of the ~20% commissio
by splonk 10y ago
One thing not mentioned yet is that "resort fees" are basically just a way to avoid paying commission to the aggregators. The combination of the ~20% commission and the most favored nation status that aggregators require from hotels without the negotiating power of Hilton limits the options hotels have to raise rates. And as the article mentions, this leads to hotels trying harder these days to establish a relationship with customers as an end run around the MFN clauses.
Also, I've probably booked 100+ hotels in the past few years, and I still do the majority of them through booking.com. I am aware that I can sometimes get cheaper rates by booking direct, and I do sometimes, if the delta is high enough. (On the other hand, I actually just booked a Hilton that was cheaper on the aggregator than on their own website.) I'm also aware that every hotel employee will tell you that 3rd party customers get the worst rooms in the place and are the first ones to get walked when overbooked. I can't say I've ever noticed any problems there. I'm even aware that booking's rating system is skewed - their 10 point scale actually only runs from 2.5 to 10, and the median rating is something like 8.1, so keep that in mind when you book your "Very Good, 8.1" hotel.
Despite all that, it has one killer feature that making direct reservations doesn't have - a uniform interface for making/changing/canceling bookings. It's a tremendous benefit in countries where I don't speak the language. I can do it fairly reliably on either the app or the website even when my network connection is dodgy, at any time, and without having to speak the language. I do admit that my requirements are fairly specific and most people traveling within their own country with reliable phone/internet service are generally better off doing the search first on an aggregator, and then booking direct (after signing up for loyalty programs) if the price is close.
(I work in the industry, but not for any of the companies mentioned.)
- phreeza 10y agoIt's interesting that you say third party customers get worse treatment. I always assumed the opposite would be the case, because people booking through a portal can leave a rating, while many direct customers will be one-time business, with little to no recourse of things are sub-par. Do you know what the reason might be that this is not the case?
- chipperyman573 10y agoBecause the hotel has to pay a commission on you, you are worth the least to the hotel. If they have to refund your room, they have to refund less (they no longer pay the commission)
- splonk 10y agoWorse treatment doesn't really mean much unless the hotel is close to 100% capacity. I may have phrased that part badly - what I meant is that 3rd party customers are lower priority than 1st party, so if it comes down to a question of who gets the nicer room, 3rd party will lose. With respect to ratings, very few people actually leave them. So you're looking at the uncommon case of a traveler being negatively impacted, multiplied by the chance they even notice or care (e.g. someone who sleeps like a log getting the noisy room), multiplied by the chance that they actually bother reviewing. Couple that with the fact that pickier customers (frequent business travelers, points bloggers, or just brand loyalists) are vastly more likely to book direct, since you generally can't use/gain loyalty program points when booking through an aggregator, and it's understandable why direct customers might get preferential treatment. Not to mention that they're making more money from the direct customers to begin with.
- cardiffspaceman 10y agoI once booked a room with a king size bed through one of the OTAs. The bed size is extremely important to me so I make sure of it. When I found the room, it was barely large enough to contain the bed. I found out from the desk that it had been a "run of the house" booking, which sounds like it should mean, do whatever the customer wants but it apparently means the opposite. Long story short, when we complained we got moved to a penthouse suite, and that was the last time I used an OTA to book anything. BTW this hotel was a landmark in its own right, and the price for the room was very reasonable.