Is That Cheaper Hotel Rate You Found Online Really a Good Deal?

With the world slowly opening again, some people are ready to travel, after a two-year hiatus due to the pandemic. During the pandemic, some lost jobs or had a reduced income, so budgets can be limited. When that is combined with higher prices on most travel options, those deals you see online look very attractive......but are those deals really a good deal?

According to research in 2020 -2021, 83% of adults prefer to book their travel online, with over 90% of consumers doing research online prior to booking. With that many people searching and booking online, it has opened an opportunity for some entrepreneurial companies to create online booking portals for travel. Unfortunately, not all online booking portals are what they appear to be. This is a situation of "buyer beware", that $100 less rate you see from an online company you have never heard of may not be the greatest deal in the end.

The advancement of artificial intelligence, metasearch, and creative entrepreneurs has opened the travel world to companies that appear to be legitimate travel companies but in fact, are merely metasearch platforms. These metasearch companies are pulling rates from 3rd party "bed banks" (a B2B company that purchases/contracts rooms from accommodations and resells them to other companies), posting the net contracted rate (hotel's rates less commission) with what appears to be a heavily discounted rate, then placing a huge service fee hidden deep in the terms and conditions to compensate for the commission. Unfortunately, consumers don't see the hidden fees until their credit cards are processed for the reservation, and many times, these bookings are non-refundable. In the travel industry, we like to refer to these metasearch companies as "rogue OTA's".

That is not the worst of the situation with rogue OTA's. In some cases, as the rogue OTA has not contracted directly with the Hotel, they may not have the rights to sell that reservation and the booking may not be confirmed by the hotel. If you read the fine print on some of the rogue OTA websites, they are bold enough to admit that the reservation may or may not be valid to protect themselves. Can you imagine flying five hours, with your family of 5, with 3 children in tow only to show up at your hotel and find out you don't have a reservation and will either have to find another hotel or pay the higher last-minute rate on a booking you already paid for......ouch!

As a career hotelier, specializing in sales and marketing, I have sent cease and desist letters to several rogue OTA's, asking them to stop selling my hotel, trying to protect consumers. Sometimes these companies stop the deceit but in other cases, the hotel shows up again, under a new website name, looking identical to the rogue OTA I contacted to stop featuring the property.

So how do you protect yourself from these rogue OTA's and ensure you have that reservation at the hotel? Here are a few suggestions:

1. Book on the hotel's website or call the hotel directly to book. Most hotels keep their promotions current online but I have found it can be beneficial to also call hotel reservations and see if there is a promotion or package that was missed on the website. By speaking directly (and kindly) to the reservation team, you might find that they will provide you with an upgrade request or source a better rate for you. Not always but in some cases, the agents are empowered to offer something special for consumers to book directly.

2. Book with a professional travel agent. I can't stress this enough, working with a professional agent, who knows the destination, and the ins and outs of the travel business can help you on more levels than you ever thought of. Some travel agents are offered value add offers for their clients at hotels due to the amount of business they book. Travel agents can also suggestions on what to do in the area, source professional guides, get a professional car transfer, and even help you with travel insurance. Would you go to court without a professional lawyer, not a good idea so why book that vacation of your dreams without a professional by your side?

3. Book with a legitimate travel website like Expedia or Booking.com. These two companies generally have direct agreements with hotels and can assist you if there are any issues. Companies like Trivago and Tripadvisor are metasearch companies and while some of those rates may be legit (some hotels do contract directly with Tripadvisor), others may not have been sourced by a "bot" from a rogue OTA.

My advice in all cases is buyer beware.....if the rate looks too good to be true, it usually is. Travel safe, be safe, and enjoy your vacation!

@hoteltravelgirl is a hotel consultant that has worked for some of the top hotel company brands and independent hotels in the world.