A recent study revealed that booking directly through a hotel almost always yields a lower rate than going through a discount booking channel. The study of 32 major hotel booking sites, conducted by Oneglobe Network in cooperation with www.fastbookinghotels.com, found that 85% of the time the discount booking site didn’t beat the hotel.
“Rates listed on discount booking sites appear to be a better deal but, in reality, the true expense incurred can be 20-30% higher,” stated Dorothy Wang Yu, Director of Operations for Oneglobe Network. Taxes, change fees, cancellation charges, account set up fees and required prepayments were not always apparent at booking point. The result can be a nasty surprise at checkout or when the customer’s credit card statement arrives.
For travelers to Europe, the tax impact is especially important to understand prior to booking as VAT (value added tax) ranges from 15% (Luxembourg and Malta) to 25% (Sweden and Denmark). Many US based sites refer the customer to the hotel directly to receive tax rates, the study found.
Oneglobe Network analyzed similar hotel offerings in key cities across 32 different hotel booking sites to obtain rate comparisons for the same date, compiling a database of fees, charges, breakfast inclusions, and ’extras’ that would impact the total cost of a room. The ’extras’ were then factored in to determine the total cost to the traveler.
Conclusion: Book Directly
Discount sites, lowest rate guarantee, cheap booking sites are not the best deal most of the time. Reservations made through the hotel’s own site or sites that offer ’book direct’ capability have proven to be less expensive.Advice to business travelers
Many companies are encouraging employees traveling on business to locate the best rates on the Internet. The lack of flexibility combined with steep change and cancellation fees more than offset ’discount rates’ quoted. Sites that offer direct booking to the hotel, no prepayment and no cancellation fees deliver true cost savings sought by travel managers.A recent study revealed that booking directly through a hotel almost always yields a lower rate than going through a discount booking channel. The study of 32 major hotel booking sites, conducted by Oneglobe Network in cooperation with www.fastbookinghotels.com, found that 85% of the time the discount booking site didn’t beat the hotel.
“Rates listed on discount booking sites appear to be a better deal but, in reality, the true expense incurred can be 20-30% higher,” stated Dorothy Wang Yu, Director of Operations for Oneglobe Network. Taxes, change fees, cancellation charges, account set up fees and required prepayments were not always apparent at booking point. The result can be a nasty surprise at checkout or when the customer’s credit card statement arrives.
For travelers to Europe, the tax impact is especially important to understand prior to booking as VAT (value added tax) ranges from 15% (Luxembourg and Malta) to 25% (Sweden and Denmark). Many US based sites refer the customer to the hotel directly to receive tax rates, the study found.
Oneglobe Network analyzed similar hotel offerings in key cities across 32 different hotel booking sites to obtain rate comparisons for the same date, compiling a database of fees, charges,...