A recent study recent revealed that in 85% of the cases examined, consumers spent less on hotels when reservations were made through direct booking channels than on bookings made through ‘discount' hotel sites. The study of 32 major hotel booking sites was conducted by Oneglobe Network, in cooperation with www.fastbooking-hotels.com.

"Rates listed on discount booking sites appear to be a better deal but, in reality, true expense incurred can be 20-30% higher." stated Dorothy Wang Yu, Director of Operations for Oneglobe Network. Taxes, change fees, cancellation charges, account set up fees and required prepayments were not always apparent at booking point. The result can be a nasty surprise at checkout or when a credit card statement arrives.

For travelers to Europe, tax impact is especially important to understand prior to booking as VAT (value added tax) ranges from 15% (Luxembourg and Malta) to 25% (Sweden and Denmark). The study found that many US based sites refer the customer directly to the hotel for tax rates, rather than quote VAT.


32 Booking Sites Examined
Oneglobe Network staff analyzed similar hotel offerings in key cities across 32 different hotel booking sites in order to obtain rate quote comparisons. Additionally, staff members compiled a database of fees, charges, breakfast inclusions and other ‘extras' that would impact the real cost of a room reserved.

The ‘extras' were then factored in to determine the total cost to the consumer.

www.fastbooking-hotels.com was selected to benchmark the rate study as bookings through the portal are made directly to the hotel and require no prepayment, nor cancellation or change fees. Further, on reservation pages, rates can be viewed in various global currencies. Price inclusions, tax, breakfast, etc. are clearly marked.

The Findings, book direct
Discount sites, lowest rate guarantee, cheap booking sites are not the best deal most of the time. Reservations made through the hotel's own site or sites that offer ‘Book direct' capability have proven to be less expensive.*

Special Offers and promotions offered on-site showed even lower rates but were not included in the analysis due to lack of parity of terms and conditions.

*Reverse auctions, opaque product sites and non-transparent packaging were not included in the study.


Advice to business travelers
Many companies are encouraging employees traveling on business to locate a the best rates on the Internet. The lack of flexibility combined with steep change and cancellation fees more than offset rates quoted on discount' sites.

Sites that offer direct booking to the hotel, no prepayment and no cancellation fees deliver true cost savings sought by travel managers.

Details of the study can be obtained by email: j.martin@oneglobenetwork.com