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Hotels Now See Online Travel Sites as Rivals (marketwatch.com)
Major hotel chains are engaging in an online turf war with the very travel sites that have helped drive their businesses. From a report: Marriott, Hilton and InterContinental are using extensive marketing campaigns to claw back business from Expedia, Priceline and other travel-booking sites, which steer customers to hotel properties but also take commissions of up to 30% for each reservation. The chains are starting to treat these sites less as valuable business partners and more as gatekeepers standing between them and their customers. Many large hotel brands are offering lower nightly rates and other perks to loyalty members who book directly through their sites instead of online travel agencies. [...] The new battle is the latest episode in a two-decade "frenemy"-style relationship between online travel agencies and the hotel industry. Sites such as Expedia and Priceline were crucial for hotels during down periods such as after 9/11, but they have gradually eaten into the share of overall bookings ever since. Also read: Why Bargain Travel Sites May No Longer Be Bargains.
I've tried that a few times. When it's an independent hotel it often works, but for chains... forget about it. These ones that complain about paying a 30% commission refuse to give you a 10% discount if booking directly.
So well, fuck them.
I have a feeling that this is just the industry catching up. Airlines used to need the services of travel agents and would pay them a commission to sell tickets. This was because they had no or limited capacity to sell seats directly to the public. Once they got this capability, airlines stopped paying commissions and travel agencies either went out of business or specialized in areas where they could still make money. Hotels are a much higher margin business than airlines, and are much more inclined to increase occupancy at the expense of lower room rates, so it makes sense that they would pay commissions to get someone on the property and spending money. I know when I travel for business I'm much less cost-conscious than I would be if I were a vacationer, so hotels do make a lot of money once travelers are on-site.
I'm in technology and most tech people are all for squeezing every single inefficiency out of every system out there. And it is true that there are a lot of brokers and middlemen out there - ask anyone who just bought a house or car for examples. What I wonder is whether tightening the screws so much that you start to affect employment in significant ways is such a good idea. You can have a 100% efficient process, but if your profit relies on people having a disposable income to buy your products, does it make sense to leave some slack in the system?