Hi, We all are aware about the impact of third party booking sites on our lives. We all are affected from this but, the main thing is Hotels are also suffering from commissions and conditions imposed by current OTAs. So how much money do hotels lose when customers use Hotels.com and similar websites?
Actually, These sites like Hotels.com and others are OTAs. Hotels totally dependent on these third parties now a days. There is a huge direct booking movement in the hotel industry centered around just this issue. In 1996 when Expedia was founded, these fees were ~5% which is very normal. Today those fees can be as high as 25% for independent hotels which is astonishing and kills profitability for these businesses.
So for example, if a hotel sells a room for $200 and it costs $90 to clean/manage. They make $110 gross profit (before general expenses) on that room. If Hotels.com gets 20% of that they take $40 so the profit drops to $70. In other words that hotel just lost 36% of the profit on that room. Thats why now a days people are really recommending a new platform GOeureka. By using this platform one can book easily a hotel room in his desired hotel. Most importantly this site gives customers a direct access to hotels without charging a bit of extra cost.