Google Works With Hotels To Hurt Travel Competition (wsj.com)

An anonymous reader shares a WSJ report: More than 100 million Americans are expected to travel during the holidays, and many will search for lodging online. But travelers may unknowingly pay more and fail to see all of their options because some major hotels have ganged up with Google to undercut competition (The link may be paywalled). Online travel agencies like Expedia, Priceline and Travelocity have replaced brick-and-mortar agents by offering consumers more choice and convenience at a lower price. These OTAs purchase inventory from wholesalers and then market rooms at a discount to consumers in addition to flights, rental cars and travel packages. Many also have agreements with companies like American Express, Costco and Delta to market their inventory. OTA websites let travelers sift through hotel offers based on price, brand, location, amenities and guest rating, among other search filters. OTAs earn a roughly 20 percent commission from hotels for each reservation they book, which covers their cost of marketing, inventory acquisition, customer support and payment processing. As hotels get squeezed by Airbnb and home rental sites, they have begun complaining that OTAs are eating into their profits. Several major hotels are now trying to use Google as a counterweight, while Google is exploiting its search dominance to steer consumers to its travel service. Some 60% of travelers begin trip-planning on Google.

Comments

Re:OTA not always the best deal

[b0s0z0ku]

Better yet, call or show up at the hotel and offer cash. Works nicely for independent places -- they'll still need an ID and/or card for security, but they're willing to negotiate if you cut some of their costs (swipe, consolidator fees) out of the equation by paying cash.

Re:OTA not always the best deal

[AvitarX]

Don't forget better cancelation policy and more likely to be upgraded as perks for booking through the hotel itself.

F'in PARKING?

[fluffernutter]

I registered a hotel stay on one of those sites now. A very nice hotel but downtown, and valet parking came as part of the 'bundle'. The front desk refused to give this to us. They said we didn't have the right text in our record. We fought and lost. We talked about what we wanted to do and decided we didn't have much of a choice and took their 5% off 'sucks to be you' deal plus paying for valet parking. When I stood in line to get our room, I heard the exact same argument happening at another booth. I guess if I really wanted to raise a stink I should have pulled aside the other person and stood there waiting as our group got bigger, but I was there for vacation with my family.

Re:OTA not always the best deal

[TheRaven64]

A number of the big chains give you pretty big penalties for not being a member of their rewards club. For example, free WiFi for all members of the rewards scheme, even if you've never stayed with them before. A few I've stayed in offer access to a lounge with complimentary snacks and coffee (and, less often, beer) for members of the loyalty club, again with no requirement to actually stay there regularly. I have a small collection of hotel loyalty cards that I never use (I've never been asked to present one, I just log in and book with my account and it's automatically associated) because you always get a better deal if you're a member. I don't really understand why - most of them need your name, address, and credit card number when you book, so it's not like also giving them a single-use email address makes it easier for them to track me.

Smaller hotels will often give you a better rate if you email / call and ask. I've had pretty good luck just saying 'we're only able to pay this much for accommodation, can you come close?' Most of the time, they will (and will also do useful things like give a flat rate per night, rather than a cheap rate some nights, and charge and a more expensive one others, which makes the expenses people happier).