Hotels use discounts to woo guests to book directly online

Associated Press

NEW YORK

Hotels are getting more aggressive in their fight to get travelers to book reservations directly with them instead of through online travel agencies such as Expedia and Priceline.

Hyatt Hotels Corp. on Monday became the latest chain to offer guests a discount for booking a room directly on its own website. Members of its Gold Passport loyalty program can save up to 10 percent at hotels in the U.S., Canada and Australia.

The move follows similar campaigns by Hilton Worldwide, Marriott International and Starwood Hotels & Resorts Worldwide.

Hotel companies have a tortured relationship with online travel booking sites. They rely on the sites to bring travelers to their properties and fill rooms. But companies such as Expedia and Priceline charge commissions of 15 percent or higher. The hotel chains would rather keep that money themselves.

“It costs them less, and it gives them a better chance to create a business relationship,” said Henry Harteveldt, of travel consultancy Atmosphere Research Group. “They get our email information and a chance to win our ongoing preference.”

Harteveldt noted that fewer than 1 in 4 hotel guests belongs to a loyalty program.

Expedia said online travel agencies help travelers discover new hotels and offer efficiency.

“The vast majority of travelers coming through our sites are new, brand-agnostic and incremental to the chain’s existing loyal customers,” said Cyril Ranque, president of lodging partner services for the Expedia Group. “To ask a consumer to search multiple sites for the best price sets the industry back 20 years.”

As chains bring hundreds of independent hotels into their booking systems, they are trying to prove their own worth and justify their own management or franchise fees. Part of that process means trying to retrain guests to do less price comparison.