I booked through Expedia once and when I went to the hotel the owner told me that they charge the hotel like 25% for each reservation and on top of it they charge the consumer. I'll break down my experience. I paid $112 ($100 for the room and $10 for tax and $2 for a service fee) for the room through Expedia. The hotel owner told me that Expedia gave them $75 for my reservation. In the end of it, the hotel owner told me that I should just call the hotel directly and they would give me the $75 rate. I'm never going through Expedia again!
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posted: Dec. 8, 2008 @ 7:52p
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Senior Member - 5K
posted: Dec. 8, 2008 @ 8:03p
1. Expedia is in business to make a profit 2. Smaller hotels have limited marketing budgets, so sites like Expedia drive traffic 3. Major chains also take a cut from hotel owners 4. Online sites generally charge room in full at time of reservation, guaranteeing income for the hotel, justifying a lower rate. Many direct hotel web sites offer a better rate when you pay in full in advance.
You can call a hotel and ask for their best rate; depending on who is on duty and answers the phone at the time can make a big difference in the price they quote - can't be sure that it will be the owner, and he will give the best deal
Senior Member - 5K
posted: Dec. 8, 2008 @ 9:53p
paadma said: I booked through Expedia once and when I went to the hotel the owner told me that they charge the hotel like 25% for each reservation and on top of it they charge the consumer. I'll break down my experience. I paid $112 ($100 for the room and $10 for tax and $2 for a service fee) for the room through Expedia. The hotel owner told me that Expedia gave them $75 for my reservation. In the end of it, the hotel owner told me that I should just call the hotel directly and they would give me the $75 rate. I'm never going through Expedia again!Well, you will probably lose money with that attitude.
As shank mentioned, sometimes calling the hotel directly and asking for the best rate may get you a good price. Other times Expedia, Orbitz, etc. may have purchased a block of rooms in advance at a discount rate and can offer them at a better price or they may be offering a rebate/future discount. At busy times of the year when a hotel may feel it will fill the rooms anyway, they probably have no need to negotiate. I have found some great deals going through Hotels.com or Expedia that were better than dealing with the hotel directly, other times the hotel or their web site has beat the online sites. I have also booked a room through one of the online sites at hotels that showed "no vacancy" at their own corporate site. Other times (if you know there are vacancies), waiting until check-in will yield a great walkup rate.
Fact is, if you want a deal, there is no one way to get it.
Senior Member - 5K
posted: Dec. 8, 2008 @ 9:55p
Sites like Expedia and Travelocity also buy blocks of rooms in advance at a discounted rate from the larger hotels. If Expedia and Travelocity can't book the rooms, they take the hit and the hotels still get their money, albeit discounted from their normal room rates.
posted: Dec. 8, 2008 @ 10:15p
paadma said: I booked through Expedia once and when I went to the hotel the owner told me that they charge the hotel like 25% for each reservation and on top of it they charge the consumer. I'll break down my experience. I paid $112 ($100 for the room and $10 for tax and $2 for a service fee) for the room through Expedia. The hotel owner told me that Expedia gave them $75 for my reservation. In the end of it, the hotel owner told me that I should just call the hotel directly and they would give me the $75 rate. I'm never going through Expedia again!
Paadma i have been on both side of this coin. ' ' Why don't you try and call the same hotel you stayed at see what they quote you? I bet its around $107 or $108 tax and everything. '
They are not gone just give you the same rate that they give Expedia!!!!!! I know we don't' '
On the other hand i just booked a Expedia Vacation using their $200 dollar coupon for 6+ nights. It use to be $250 but that one is all used up.
The smarter thing to would be compare all the options. Find it on Expedia and try going to the hotels own website and see who comes out on top. Do not forget the power of COUPONS.
posted: Dec. 9, 2008 @ 8:27a
Expedia and Priceline don't buy blocks of rooms. It is right how the hotel will normally charge $110 a night for the room, you usually pay $110 for the room on Expedia because both companys will have a lowest price guarentee, but the hotel does only get about $80 from Expedia. What happens when you book a room on Expedia is they charge you then they fax your information for the reservations to a reservations agent at the hotel and that person inputs your information in the computer and bills Expedia for it after your check out. There is usually an hour or 2 delay before you information is entered into the hotels system, so i've seen several times where people have called and booked a room on Expedia and walk in the door to check in 5 minutes after that. Then we have to explain that until we get the information from Expedia we can't check them in and they have to sit around for an hour. Also what can happen is Expedia on busy nights, Expedia doesn't know how many rooms a hotel has left until the Hotel "closes" them off. So there are cases where a hundred people will late book on Expedia the same night and then all of the sudden the hotel will be over booked and have to walk people to a different hotel. Moral of the story, It's easier to book with the hotel for less complications.
Senior Member - 5K
posted: Dec. 9, 2008 @ 8:47a
paintbal137 said: Expedia and Priceline don't buy blocks of rooms...You might want to tell that to the NY Times:
In an August 8, 2005 article - "In essence, Expedia profited handsomely during the economic downturn by buying blocks of hotel rooms on the cheap from the major hotel chains then reselling them at a markup. Hotels got badly needed money, but they ended up paying a high price in business disruption, not the least of which was enabling a third party to sell their hotel rooms less expensively than they could."
or in the International Herald Tribune (August 9, 2005):
"...one of Expedia's greatest strengths, its "merchant model" of selling hotel rooms. Instead of simply taking a commission on hotel rooms sold, Expedia contracts to buy a big block of rooms from a hotel at a deep, discount and sells those rooms at a markup."
posted: Dec. 9, 2008 @ 9:59a
I didn't think about the blocks of rooms. I stayed at a small hotel. So I guess my theory would work if you plan on staying at 2-3 star hotels that have less than 100 rooms.
posted: Dec. 9, 2008 @ 11:41a
Soooo...contacting the hotel directly for the best available rates, before booking on Expedia, is a good idea?
Huh. Never thought of that.
Your attitude seems to be that Expedia should not make money, and you should not have to do any work to be guaranteed the best rate.
KayK's running mate
posted: Dec. 15, 2008 @ 9:50a
It all depends who you talk to. I've checked Expedia et al and found a slightly higher price then the national website offered. called the hotel directly and they offered me the highest rate of all, so i hung up on them and booked it over the phone through the national number for best price. And I bet the hotel had to pay more to the national brand for that booking.
Moral of the story: Check all sources and buy the cheapest you get. Who cares what the hotel makes except the hotel.
I just found an Expedia rate of $223 for the same room Westin is charging $319. I called Westin to pricematch and they said only after I book first with them and then they'll adjust. A few hours later I got an email sying Expedia rate is the same so they cannot pricematch so I go back to Expedia and the cheaper price had disappeared. Next time I'll just book with Expedia because the hotels have no plan to pricematch; they use the info you give thme to force Expedia to charge a higher price.
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