About how much percent do hotels pay to middlemen like Expedia, Priceline, Trovelocity, Orbitz, etc.?

Question

Why do we need to go through the middleman?

Answer 1

The second answer is more on than the first one but the 3rd party booking sites actually get up to 30%! The ones you specifically mentioned run generally from 20-30%. There are also sites which allow hotels to bid for your business; the commission on those starts lower, usually 8-10%. You get the same room as anyone else but the hotel does control the inventory so they can cut off high traffic dates and force you to only book through their own channels during those times. However, it doesn't do you much good as a traveler to know this if you're goal is simply to find the cheapest rates. The hotel's own chain and the big 3rd party sites all demand parity, which means everybody wants the same price as the others. This means you pay the same; the hotel just gets less if you use a third party. Because of this setup, it is always best to use the 3rd party sites to do your homework but book directly with the hotel.

Answer 2

Actually, hotels use "middlemen" like those website you mentioned to assist in filling up rooms that would otherwise go unsold. The percentage that a hotel pays to participate with these websites is usually 5-15% off the posted rate.

For example, if the posted rate in Priceline is $100, the hotel will receive payment for $85-$95. You also need to understand that the percentage is different from website to website. Also, many hotels do not participate with any of these websites. Most hotels have their inventory available through GDS (Global Distribution System). It means that many of these websites can sell rooms for hotels without a contract or a percentage at the hotel's regular rate.

Answer 3

Actually middlemen pay the hotels (and the airlines) and not the other way around--- they just pay less than they charge the traveller and keep the rest as profit. In return they get to sell a room that might otherwise be unsold, so the hotel benefits too. In general they tend to get the smaller rooms, or the ones with no views, or other less desirable rooms. And we do not need to go through middlemen (I never do). We can simply book our reservation directly with the hotel or airline. I usually find the same prices and get a better room when booking directly with the hotel.

Answer 4

None of them. Book direct with the hotel and you save the commission the hotel pays them. Ian

Answer 5

Yes I agree with what's been answered

Answer 6

Some pretty good arguments here.