Travellers are paying up to 12% more for their hotel rooms if they book online, according to research from consumer group Which?, which blames the rise of online travel agents for the price increases.
Sites such as Booking.com or its US rival Expedia offer holidaymakers the ability to pick between thousands of hotels around the world. But they do not always have the cheapest price available – and their best efforts to provide that may, in fact, serve to push up prices across the web.
Which? phoned 10 hotels across Britain, all of which were listed on Booking.com, and found that eight were able to offer a better deal over the phone than online – with one offering a discount of £20, 12% of the overall cost, as well as a free upgrade.
According to the consumer advocacy group, the distinction is due in part to the heavy commissions charged by online travel agents, which can run as high as 25% of the overall cost. If businesses are unable to absorb those fees into their margins, they may end up raising prices on the travel agents’ sites directly.
The problem is compounded by the fact that the largest online travel agents also enforce rate-parity clauses, which ban hotels from offering cheaper rates anywhere else online. But those clauses do not cover other avenues of inquiry, including email, phone calls or in-person visits, opening up the prospect of savings for canny travellers.
“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,” said Rory Boland, the editor of Which? Travel.
“Hotel booking sites might be a good place to start your search, but you should always call or email the hotel for the best chance of getting the cheapest deal – even in cases where they can’t offer a better price, there’s a good chance they’ll throw in a freebie or two.”
In a statement, Booking.com said its site “is a much more cost-effective platform for properties to advertise, allowing them to pay only when they generate actual business”.
An Expedia spokesperson said: “Our focus is on ensuring that the best rates and availability are presented to consumers in order to attract travellers to our sites to book with our partners … Hotels pay no upfront cost for using an [online travel agent]. 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.”
In 2019, the Competition and Markets Authority concluded a years-long investigation into the online hotel booking industry and the largest sites voluntarily committed to ending a number of misleading practices – for instance, falsely implying that hotel rooms were discounted or that multiple potential travellers were looking at the same room and dates simultaneously.
