4 ms·

The base issue is that the fees that agencies/aggregators like booking.com are (IMHO outrageously) high, in the 15% (a minimum that I believe very few hotels pa

by jaclaz 9y ago

The base issue is that the fees that agencies/aggregators like booking.com are (IMHO outrageously) high, in the 15% (a minimum that I believe very few hotels pay) up to 25%-30%. On average, it is something like 18%-20%. To have a term of comparison, in the old times when travel agencies existed, the fee was more in the 5%-10% range. Small hotels must submit to them to have any visibility on the net, and (I believe it depends on countries, in some the clause has been deemed as invalid) the contract states that the hotel must not expose to the net (on its own site) a price that is lower than the one on the aggregator. Hotel chains might have the visibility and resources to bypass this perverse mechanism, and even if they pay the lowest fee of 15%, in times of low margins every fraction is important.

Grue3 9y ago
But consider that there's basically zero chance that I (as a typical user) will book a hotel if it's not listed at booking.com. Just because I must read real guests' impressions of the hotel to avoid the ones with bad Wi-fi. That's much more valuable service than what travel agencies provide, so it makes sense it costs more.
- jaclaz 9y ago
  Maybe we are talking of two different kinds of travel/hotel agencies. Once upon a time there were travel agents that put their name (and face) upfront to the customer, guaranteeing when they recommended (and booked in behalf of) a given hotel (or vector/transport), they usually knew (from direct experience or from "verified" reports) the qualities of the suggested hotel or travel arrangement. And - just for your interest - the "real" adjective when talking of guests impressions reported on booking.com (and much, much worse than that on tripadvisor) is something that needs to be attributed with more than a pinch of salt.
  - Grue3 9y ago
    >the "real" adjective when talking of guests impressions reported on booking.com (and much, much worse than that on tripadvisor) is something that needs to be attributed with more than a pinch of salt. I have personally reviewed every single hotel I stayed in, and none of my comments were removed or altered in any way. Which I sadly cannot say about HN. (I have a suspicion that the overall hotel rating might be fake, and I rarely pay attention to it, but in my experience the reviews are spot on)
jonknee 9y ago
> The base issue is that the fees that agencies/aggregators like booking.com are (IMHO outrageously) high, in the 15% (a minimum that I believe very few hotels pay) up to 25%-30%. On average, it is something like 18%-20%. Don't overlook the value of a known cost. The alternative is to buy a bunch of advertising that may not result in any bookings (travel related CPC ads are expensive).

by jaclaz 9y ago

Grue3 9y ago

But consider that there's basically zero chance that I (as a typical user) will book a hotel if it's not listed at booking.com. Just because I must read real guests' impressions of the hotel to avoid the ones with bad Wi-fi. That's much more valuable service than what travel agencies provide, so it makes sense it costs more.

jaclaz 9y ago
Maybe we are talking of two different kinds of travel/hotel agencies. Once upon a time there were travel agents that put their name (and face) upfront to the customer, guaranteeing when they recommended (and booked in behalf of) a given hotel (or vector/transport), they usually knew (from direct experience or from "verified" reports) the qualities of the suggested hotel or travel arrangement. And - just for your interest - the "real" adjective when talking of guests impressions reported on booking.com (and much, much worse than that on tripadvisor) is something that needs to be attributed with more than a pinch of salt.
- Grue3 9y ago
  >the "real" adjective when talking of guests impressions reported on booking.com (and much, much worse than that on tripadvisor) is something that needs to be attributed with more than a pinch of salt. I have personally reviewed every single hotel I stayed in, and none of my comments were removed or altered in any way. Which I sadly cannot say about HN. (I have a suspicion that the overall hotel rating might be fake, and I rarely pay attention to it, but in my experience the reviews are spot on)

jonknee 9y ago

> The base issue is that the fees that agencies/aggregators like booking.com are (IMHO outrageously) high, in the 15% (a minimum that I believe very few hotels pay) up to 25%-30%. On average, it is something like 18%-20%. Don't overlook the value of a known cost. The alternative is to buy a bunch of advertising that may not result in any bookings (travel related CPC ads are expensive).