There are many people who do not have a full understanding of how websites can offer cheap hotel rates online, especially when they are offering them at a lower price than the hotel. How is it that these websites really work, and is their rate really cheaper than the hotel?
I actually own one of these cheap hotel rates websites, and I can tell you for sure that it is the real deal. There are a lot of factors that actually go into sites providing rates below the hotel's price, but I will break some of them down for you so that you can see how we offer cheap hotel rates.
The first thing these cheap hotel rates are available because the site buys in bulk. Basically we make a promise to the hotel that we will fill a particular number of rooms for them each night of the year. It is hard to predict, but it has to be done to make the most money. We pay attention to things such as special events, and when people actually travel, and then increase our quantity of rooms.
We have contracts with the hotel that require them to reserve our rooms. In return since we guarantee we will fill their rooms, they offer us a discounted rate. This is the wholesale rate, which is even less that the cheap hotel rates displayed on our site.
We then add a markup to the rates, so that we make money, and sell it to you less than you could get it from the hotel. Since we pay up front for the rooms, these cheap hotel rates are only available to you if you are willing to do the same. This is simply because we have prepurchased the rooms at the wholesale rate up front from the hotel.
There really isn't a catch to these type of websites. You do have to prepay, but more and more hotels are charging a deposit to guarantee the room anyway. You can save a lot of cash if you buy in advance with websites like mine. Plus almost any site offering cheap hotel rates will match a competitors price if you find it cheaper. This is because each of these sites is working towards a market share, and loyal customer base.
I actually own one of these cheap hotel rates websites, and I can tell you for sure that it is the real deal. There are a lot of factors that actually go into sites providing rates below the hotel's price, but I will break some of them down for you so that you can see how we offer cheap hotel rates.
The first thing these cheap hotel rates are available because the site buys in bulk. Basically we make a promise to the hotel that we will fill a particular number of rooms for them each night of the year. It is hard to predict, but it has to be done to make the most money. We pay attention to things such as special events, and when people actually travel, and then increase our quantity of rooms.
We have contracts with the hotel that require them to reserve our rooms. In return since we guarantee we will fill their rooms, they offer us a discounted rate. This is the wholesale rate, which is even less that the cheap hotel rates displayed on our site.
We then add a markup to the rates, so that we make money, and sell it to you less than you could get it from the hotel. Since we pay up front for the rooms, these cheap hotel rates are only available to you if you are willing to do the same. This is simply because we have prepurchased the rooms at the wholesale rate up front from the hotel.
There really isn't a catch to these type of websites. You do have to prepay, but more and more hotels are charging a deposit to guarantee the room anyway. You can save a lot of cash if you buy in advance with websites like mine. Plus almost any site offering cheap hotel rates will match a competitors price if you find it cheaper. This is because each of these sites is working towards a market share, and loyal customer base.
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