Re:Hotels turn to robots and room cleanings every 4 days to ...
by lotsofpulp on Friday December 23, 2022 @01:35AM
(#34102890)
OTAs do not have negotiated rates.
The hotel owner/management sets the price, or the automating rate setting programming sets the price based on its parameters and shop of other hotels in the “comp set” (competing hotels in the area). This rate is the “best available rate” (BAR) or “best flexible rate” (BFR), and there may be a prepaid non refundable discount rate option too.
The OTAs then get this pricing information via the central reservation system and then either sell a reservation where the guest pays the OTA the BFR, and the OTA pays the hotel 85% (typically). Or the OTA offers the guest to pay the the hotel directly, in which case the hotel pays the OTA 15% commission.
Either way, it is all very automated, and there is no specific negotiated pricing. But the big brands will typically offer 2% to 6% or so discount (depending on how much hotel management wants to do) on their BFR/BAR pricing as a “rewards member” discount, as a way to avoid paying 15% to Expedia/Booking.
Restricting it to rewards members avoids the hotel from violating any agreement with the online travel agent that they also get the same BFR/BAR as everyone else.
The hotel owner/management sets the price, or the automating rate setting programming sets the price based on its parameters and shop of other hotels in the “comp set” (competing hotels in the area). This rate is the “best available rate” (BAR) or “best flexible rate” (BFR), and there may be a prepaid non refundable discount rate option too.
The OTAs then get this pricing information via the central reservation system and then either sell a reservation where the guest pays the OTA the BFR, and the OTA pays the hotel 85% (typically). Or the OTA offers the guest to pay the the hotel directly, in which case the hotel pays the OTA 15% commission.
Either way, it is all very automated, and there is no specific negotiated pricing. But the big brands will typically offer 2% to 6% or so discount (depending on how much hotel management wants to do) on their BFR/BAR pricing as a “rewards member” discount, as a way to avoid paying 15% to Expedia/Booking.
Restricting it to rewards members avoids the hotel from violating any agreement with the online travel agent that they also get the same BFR/BAR as everyone else.