Sunday, May 01, 2005

Are hotels paying out too much for online bookings?

My old friend, the caterer-online.com lets Liam tout his site: "An internet entrepreneur has warned hoteliers that choosing the wrong online booking company could leave them out of pocket...Liam Lyon, who runs his own site, hotelscomparison.com, from his bedroom, believes that comparison sites, which pool various online bookers, are a cheaper and more reliable method of targeting customers than a Google search...

Hotelscomparison, which turns over about £8,000 per month, searches 16 online bookers and lists sites in ascending price order. It makes its money by charging an average of 5% per booking...

Roger Smith, director of marketing at Accor UK, was more cynical. "Comparison sites bring another element to the equation but the real question is whether companies will eventually pay for a priority listing on them like they do now on Google."

He also warned that a more transparent booking system could have big implications for the hotel industry. "Consumers will see incoherence between rates at individual hotels," he said."

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