July 19, 2018
Expedia says packages are better for hotels than room-only
Hotels are achieving higher average daily rates (ADR) from consumers who book packages rather than just rooms, according to data from Expedia Group.Read more
Many holidaymakers think that if a hotel is ranked at the top of the list by a booking website it means that it has the best deal.
But where a hotel appears in the search results often has nothing to do with merit or price, but rather with how much commission they are paying the website. Experts say booking sites typically charge companies between 15 per cent and 20 per cent of the cost of a room or holiday to be listed.
But hotel owners know that customers rarely scroll beyond the first three or four options on display - so they are desperate to appear near the top of the webpage.
Industry insiders told Money Mail that in order to secure a good position, some hotels pay booking sites twice the standard rate of commission - as much as 40 per cent, or £800 on a £2,000 holiday.
It means that holidaymakers who think they are getting the best deal may actually be paying far more than they need to for their room.
Get the full story at This is Money
Read also "Hotel booking websites told to stop ‘one room left’ warnings"
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