How hotel booking sites in India provide cheap deals
When comparing hotel booking sites like MakeMyTrip, Goibibo, Hotels.com, Booking.com or Expedia.com and more. You find, they all list hotels, provide competitive rates and allow bookings. Then how do you make the decision to reserve. Based on cheapest rates?
Sometimes you find great deals and offers and later they are gone. Do you know the reason why?
1. These rates are temporary deals
2. Short lived offers.
3. These lower rates may also be floated just to acquire customers
Let's first understand, How do Online Travel Agencies (OTAs) provide cheap deals:
1. The online booking sites charge up to 35% commission to hoteliers and pass on some part of it to customers as discounted rates.
2. They burn their own cash reserve to provide offers
3. They charge bookers with booking or convenience fee to provide discounts to customers.
Do you think that the cheapest rates and offers on travel accommodation can be sustainable in long run?
Budget Hoteliers can bare minimum operate at these commission rates. They have to cut down on services and even forced to keep untrained low salaried staff. The travel booking sites can hardly run these offers from their own pockets. Practically no one can.
This means you will have to pay from your pocket to keep running the show or you will not get these lucrative offers any more.
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