Watchdog warns consumers over online travel agents
Travellers can get a better deal by booking directly with hotels rather than through online travel agents, a consumer rights watchdog has found.
The investigation found that eight out of 10 hotels were able to offer a better price or other incentives such as free breakfasts or upgrades when customers booked directly over the telephone.
Research by Which found that consumers could be paying up to 12 per cent more for their rooms when booking through an online travel agent such as Booking.com or Expedia.
Which travel editor Rory Boland said: “Customers shouldn’t be duped into thinking they’re getting the best price from a hotel booking site when more often than not, they can get a better deal by avoiding its commission and booking directly with the hotel.”
The research found customers were charged more due to commission and “rate-parity clauses”, which prevent hotels from offering cheaper prices on their own websites.
“Hotels pay no upfront cost for using an OTA. They have the freedom to review their room demand and availability across their different distribution channels and, using our technology solutions, update the rates and availability that they provide for display on Expedia Group websites,” Expedia told Which.
“This combination of attributes is particularly valuable for Europe’s small independent hotels.”
Booking.com added: “If a hotel or small bed & breakfast in the countryside for example, were to advertise on TV in markets all over the world in order to find customers and generate business, it would likely be so expensive that the properties would need to charge even higher prices for their rooms in order to stay in business.
“Booking is a much more cost-effective platform for properties to advertise, allowing them to pay only when they generate actual business.”