> Why would a hotel want to pay 15% commission to Expedia or Priceline? Well, they don't want to per se, but since you are in the hotel business then you know

> Why would a hotel want to pay 15% commission to Expedia or Priceline? Well, they don't want to per se, but since you are in the hotel business then you know that a hotel room, like an airline seat, is effectively a perishable good. An unoccupied room is a revenue opportunity that is lost forever, and worse it is a source of costs not associated with occupation (interest, heating, fixed wages, etc). Like an airline, a hotel operator is strongly motivated to maintain as close to full occupancy as possible. As long as average room revenue is above occupied room overhead, the business is ahead financially. I suspect that, like airlines, hotels cover their overhead with "economy class" guests, and make their profit from "first class" guests who are not price sensitive. Hotels have a dilemma because they want full occupancy without conditioning consumers to expect discounted rates. Their solution has been to be to officially advertise "list price" while discounting as necessary through 3rd parties. However, I'll remember to check roomkey.com from now on, thanks!