Agoda, the original Asian OTA, has gone rogue on pricing, multiple hoteliers say Agoda regularly sells unauthorized static wholesale rates through the site, undercutting them on price without any regard for contracts.
Other times the feeling is Agoda takes a contracted rate and shaves its margin to push the price below competitor and hotel pricing.
Agoda’s contentious behaviour, which runs contrary to the two-way price parity contracts it signs with hotels, has led to it being cut off at times by several major hotel groups.
“It’s a matter of pushing back and closing them if needed,” said one.
Another complained about the “constant battle” of ensuring that the ‘static’ rates it has negotiated with tech-backward wholesalers on allotment do not end up on Agoda.
“The consumer still gets the bill from Agoda but we’ll hear from the wholesaler.”
Hoteliers say Agoda is taking multiple rate feeds and using the lowest one to ensure it always has the cheapest rate.
One frustrated hotelier said it looks like Agoda is moving to kind of a meta-search hybrid.
Both are right.
Read the full article here.