I’m pretty sure that’s how, say, Expedia makes their money. Traditional hotel reservation permit very late cancellation (24hrs typically). Hotels are willing to offer a reduced rate if you promise to not cancel.

So Expedia is just a front for that other class of bookings that are non-cancellable and they skim a profit from that. Hotels save face as they can just fingerpoint if someone complains yet they gain by getting the non-cancelable bookings.