7 ms·

Show HN: Scout – See lower direct hotel rates as you browse online travel agents

54 points by manicminer 9y ago

manicminer 9y ago
Nine months ago, an article "For Hotels, There’s No Room Left for Online Travel Agencies" sparked some interesting discussion on HN [1]. Many of the topics discussed informed the development of our new product, Scout. The perception of many travelers is that the best hotel prices are to be found at the big online travel agencies. The hotel chains have recently been attempting to alter this perception by offering lower prices when you book via their own websites. This usually requires membership in a loyalty program but they have streamlined sign-up so that you can become a member during the checkout process. This channel shift is really important for the hotels because they lose so much in commission to the OTAs, not to mention market relevance and a direct relationship with the customer. Room Key is a joint venture between six of the largest hotel chains in the world and has unique access to these lower direct rates. We have just launched a new product called Scout, a Chrome browser extension that activates whenever you view a hotel at major OTAs. Scout looks at the lowest rate being advertised by the OTA and then searches in the background to see if it can find a lower direct rate. If it does, it automatically displays a notification along with a button that takes the user to the hotel's own site to book the lower rate and get additional perks of booking direct (e.g. points, free wifi). For now the hotels Scout works with are mostly limited to brands belonging to larger chains (Marriott, Hyatt, Wyndham, Choice, IHG). E.g. try looking at a Holiday Inn on Expedia and you're very likely to see a Scout notification. The OTAs are currently limited to the major players (Expedia, Orbitz, Priceline, Booking.com, Hotels.com, Travelocity) but we hope to grow this list to include metasearch engines (Kayak, Trivago, etc) in the near future. We also hope to introduce the extension on other browsers. [1] https://news.ycombinator.com/item?id=14443291 https://news.ycombinator.com/item?id=14443291
- ceejayoz 9y ago
  I'd appreciate a "how we make money" section on the site. It's not clear how (if?) you do, and that scares me a bit when considering an extension that'll run on sites that take my credit card.
  - killion 9y ago
    Roomkey is a joint effort by a number of large hotel groups, similar to how Hulu started. Their goal is to increase hotel direct bookings.
    - empath75 9y ago
      How is that different than a regular travel agency. It’s still a middle man taking a cut.
      - eldavido 9y ago
        No it isn't. The big chains are fighting to stay relevant against the channels (Expedia, Priceline, Airbnb). Franchisees don't want to pay 6-8% of revenue to a chain and then another 10-15% to a channel. They're going to pick one or the other, and right now, my bet is on the OTA or "online travel agency" aka Expedia. This battle is existential for the chains (they're out of business if they lose). They need to be seen by member properties as "worth it" or the properties will "de-flag" and go independent, getting bookings directly from the channels. They're trying every play in the book, from merging to get more bargaining power (Marriott's purchase of Starwood), creating their own tech stack to drive direct bookings for member hotels (this), and trying every loyalty trick known to man. In the long run the current situation isn't stable. Franchisees aren't going to pay for both a channel and a chain. The chains couldn't get their shit together enough to bring the individual properties bookings (what you're supposedly paying that 6% of revenue for) and they're going the way of the dodo. That's what's really going on here. Roomkey et al is the chain-funded effort to fight back against Expedia, etc. They're going to lose unless they get serious about fighting Expedia and co. head-on. The problem is, they're fighting a battle where Expedia already has a strong, fortified position and it's going on be on their (Expedia's) terms. I don't see how this ends well for the chains.
        shanghaiaway 9y ago
        Yes it is. Roomkey is just another middleman alternative to Expedia.
- bedros 9y ago
  I use firefox as my main browser, it's a shame I need to switch to chrome to get scout functionality
  - manicminer 9y ago
    A Firefox version is high on our list
whitepoplar 9y ago
You may want to reconsider the design of your logo: https://scoutapp.com/ https://scoutapp.com/
- deleted 9y ago
  [deleted]
- jermaustin1 9y ago
  This seems impossibly similar to be an accident.
  - GoRudy 9y ago
    Seriously. Whatever discount design firm they used they should probably just go ahead and charge that one back. facepalm.
  - BlueGh0st 9y ago
    Well there's only so many ways a dog can point. I think it's more likely just an unfortunate coincidence.
  - wmeredith 9y ago
    Stuff like this is really common if you use fiverr or any of the other super cheap logo /design generator sites. You’ll end up saving a couple hundred bucks but you’re likely just paying someone to ripoff something else if what you get back is any good. I saw it a lot in my agency days.
- upbeatlinux 9y ago
  Uncanny http://take.ms/ch1TN http://take.ms/ch1TN
jamesshamenski 9y ago
The widget showed me the same price as the hotel. I was asked to click through in order to see if a lower rate was available. So no, I cannot 'see lower direct hotel rates as I browse online travel agents'. The marketing messaging is completely disjointed from what the product actually does.
Eridrus 9y ago
So, installing an extension which requires "Read and change data on all websites you visit" to save a few bucks isn't going to happen.
- ttul 9y ago
  Hmmmm
- degenerate 9y ago
  If instead it said "Read and change data on Expedia, Orbitz, Priceline, Booking.com, Hotels.com, Travelocity" then I would be OK with it. But unfortunately they want full access!
  - manicminer 9y ago
    Thank you for pointing this out. We'll look at this and see if we can enumerate the OTAs on which Scout works as you suggest. I can assure you that the extension collects only what it needs to do in order to function.
    - helb 9y ago
      It is possible to enlist websites you want access to: https://developer.chrome.com/apps/permission_warnings#warnings https://developer.chrome.com/apps/permission_warnings#warnin... I don't know if/how is it compatible with Firefox and other browsers…
- deleted 9y ago
  [deleted]
eldavido 9y ago
I've spent the last three years building a hotel property management system. I hate OTAs. They are gross middlemen who charge criminally high commissions to hotel operators. And as much as I philosophically support what you're doing here, both Roomkey in general and Scout in particular, you're barking up the wrong tree. At the point where a customer is searching on Expedia or booking.com, you've lost. These sites have aggressive reward programs and are tuned machines to get people to buy. The better approach is actual property-level differentiation that makes people want to stay at a particular hotel. If your customer sees hotel inventory as essentially fungible, which is what most of the undifferentiated inventory on booking/expedia is, they're going to pay commodity prices for it. The chains need to step up and market directly to consumers, and GIVE ME A REASON TO LIKE THEM. Right now it's all sort of meh. Hilton, Hyatt, Rodeway, whatever, I just don't care, give me the lowest price and I'm there.
- ggm 9y ago
  Not wanting to be stupid (ok.. losing battle) but what exactly are these huge expedia rewards? I've done quite a lot of travel and booking through them, and frankly, I am unsure what benefit I've got from it.
  - whitepoplar 9y ago
    I like the Hotels.com rewards program. It's like a punch card, and you're not locked into a particular hotel chain. Stay 10 nights, get a credit for the average cost of those 10 nights. They also price match if you find a cheaper rate anywhere else.
- degenerate 9y ago
  What I completely don't understand is, I have tried calling hotels directly when looking at the hotels.com/expedia price, and asking if they can give me that rate directly or even a little cheaper. They never can. They always say "you'll have to book it through them" to get that rate. I've tried this at least a dozen times, always with the same answer. Do these chains have some kind of written agreement with the websites where they are NOT allowed to undercut those prices, ever?

54 points by manicminer 9y ago

Nine months ago, an article "For Hotels, There’s No Room Left for Online Travel Agencies" sparked some interesting discussion on HN [1]. Many of the topics discussed informed the development of our new product, Scout. The perception of many travelers is that the best hotel prices are to be found at the big online travel agencies. The hotel chains have recently been attempting to alter this perception by offering lower prices when you book via their own websites. This usually requires membership in a loyalty program but they have streamlined sign-up so that you can become a member during the checkout process. This channel shift is really important for the hotels because they lose so much in commission to the OTAs, not to mention market relevance and a direct relationship with the customer. Room Key is a joint venture between six of the largest hotel chains in the world and has unique access to these lower direct rates. We have just launched a new product called Scout, a Chrome browser extension that activates whenever you view a hotel at major OTAs. Scout looks at the lowest rate being advertised by the OTA and then searches in the background to see if it can find a lower direct rate. If it does, it automatically displays a notification along with a button that takes the user to the hotel's own site to book the lower rate and get additional perks of booking direct (e.g. points, free wifi). For now the hotels Scout works with are mostly limited to brands belonging to larger chains (Marriott, Hyatt, Wyndham, Choice, IHG). E.g. try looking at a Holiday Inn on Expedia and you're very likely to see a Scout notification. The OTAs are currently limited to the major players (Expedia, Orbitz, Priceline, Booking.com, Hotels.com, Travelocity) but we hope to grow this list to include metasearch engines (Kayak, Trivago, etc) in the near future. We also hope to introduce the extension on other browsers. [1] https://news.ycombinator.com/item?id=14443291 https://news.ycombinator.com/item?id=14443291

ceejayoz 9y ago
I'd appreciate a "how we make money" section on the site. It's not clear how (if?) you do, and that scares me a bit when considering an extension that'll run on sites that take my credit card.
- killion 9y ago
  Roomkey is a joint effort by a number of large hotel groups, similar to how Hulu started. Their goal is to increase hotel direct bookings.
  - empath75 9y ago
    How is that different than a regular travel agency. It’s still a middle man taking a cut.
    - eldavido 9y ago
      No it isn't. The big chains are fighting to stay relevant against the channels (Expedia, Priceline, Airbnb). Franchisees don't want to pay 6-8% of revenue to a chain and then another 10-15% to a channel. They're going to pick one or the other, and right now, my bet is on the OTA or "online travel agency" aka Expedia. This battle is existential for the chains (they're out of business if they lose). They need to be seen by member properties as "worth it" or the properties will "de-flag" and go independent, getting bookings directly from the channels. They're trying every play in the book, from merging to get more bargaining power (Marriott's purchase of Starwood), creating their own tech stack to drive direct bookings for member hotels (this), and trying every loyalty trick known to man. In the long run the current situation isn't stable. Franchisees aren't going to pay for both a channel and a chain. The chains couldn't get their shit together enough to bring the individual properties bookings (what you're supposedly paying that 6% of revenue for) and they're going the way of the dodo. That's what's really going on here. Roomkey et al is the chain-funded effort to fight back against Expedia, etc. They're going to lose unless they get serious about fighting Expedia and co. head-on. The problem is, they're fighting a battle where Expedia already has a strong, fortified position and it's going on be on their (Expedia's) terms. I don't see how this ends well for the chains.
      - shanghaiaway 9y ago
        Yes it is. Roomkey is just another middleman alternative to Expedia.
bedros 9y ago
I use firefox as my main browser, it's a shame I need to switch to chrome to get scout functionality
- manicminer 9y ago
  A Firefox version is high on our list

whitepoplar 9y ago

You may want to reconsider the design of your logo: https://scoutapp.com/ https://scoutapp.com/

deleted 9y ago
[deleted]
jermaustin1 9y ago
This seems impossibly similar to be an accident.
- GoRudy 9y ago
  Seriously. Whatever discount design firm they used they should probably just go ahead and charge that one back. facepalm.
- BlueGh0st 9y ago
  Well there's only so many ways a dog can point. I think it's more likely just an unfortunate coincidence.
- wmeredith 9y ago
  Stuff like this is really common if you use fiverr or any of the other super cheap logo /design generator sites. You’ll end up saving a couple hundred bucks but you’re likely just paying someone to ripoff something else if what you get back is any good. I saw it a lot in my agency days.
upbeatlinux 9y ago
Uncanny http://take.ms/ch1TN http://take.ms/ch1TN

jamesshamenski 9y ago

The widget showed me the same price as the hotel. I was asked to click through in order to see if a lower rate was available. So no, I cannot 'see lower direct hotel rates as I browse online travel agents'. The marketing messaging is completely disjointed from what the product actually does.

Eridrus 9y ago

So, installing an extension which requires "Read and change data on all websites you visit" to save a few bucks isn't going to happen.

ttul 9y ago
Hmmmm
degenerate 9y ago
If instead it said "Read and change data on Expedia, Orbitz, Priceline, Booking.com, Hotels.com, Travelocity" then I would be OK with it. But unfortunately they want full access!
- manicminer 9y ago
  Thank you for pointing this out. We'll look at this and see if we can enumerate the OTAs on which Scout works as you suggest. I can assure you that the extension collects only what it needs to do in order to function.
  - helb 9y ago
    It is possible to enlist websites you want access to: https://developer.chrome.com/apps/permission_warnings#warnings https://developer.chrome.com/apps/permission_warnings#warnin... I don't know if/how is it compatible with Firefox and other browsers…
deleted 9y ago
[deleted]

eldavido 9y ago

I've spent the last three years building a hotel property management system. I hate OTAs. They are gross middlemen who charge criminally high commissions to hotel operators. And as much as I philosophically support what you're doing here, both Roomkey in general and Scout in particular, you're barking up the wrong tree. At the point where a customer is searching on Expedia or booking.com, you've lost. These sites have aggressive reward programs and are tuned machines to get people to buy. The better approach is actual property-level differentiation that makes people want to stay at a particular hotel. If your customer sees hotel inventory as essentially fungible, which is what most of the undifferentiated inventory on booking/expedia is, they're going to pay commodity prices for it. The chains need to step up and market directly to consumers, and GIVE ME A REASON TO LIKE THEM. Right now it's all sort of meh. Hilton, Hyatt, Rodeway, whatever, I just don't care, give me the lowest price and I'm there.

ggm 9y ago
Not wanting to be stupid (ok.. losing battle) but what exactly are these huge expedia rewards? I've done quite a lot of travel and booking through them, and frankly, I am unsure what benefit I've got from it.
- whitepoplar 9y ago
  I like the Hotels.com rewards program. It's like a punch card, and you're not locked into a particular hotel chain. Stay 10 nights, get a credit for the average cost of those 10 nights. They also price match if you find a cheaper rate anywhere else.
degenerate 9y ago
What I completely don't understand is, I have tried calling hotels directly when looking at the hotels.com/expedia price, and asking if they can give me that rate directly or even a little cheaper. They never can. They always say "you'll have to book it through them" to get that rate. I've tried this at least a dozen times, always with the same answer. Do these chains have some kind of written agreement with the websites where they are NOT allowed to undercut those prices, ever?