The battle between America's large hotel chains and the so-called "Online Travel Agents," who attempt to place reservations at such chains, has now come into the open. Hilton Hotels, among others, has begun placing large advertisements urging the public to place their reservations directly with the various Hilton hotels, and not to use the "O.T.A.'s" (Expedia, Priceline, Booking.com, etc.) to do so. If they—the public—make those bookings directly with the hotel, it is claimed, they will enjoy major discounts off the normal room rates.
Unsaid in the ads (unless it's expressed in the tiny type at the bottom of the page) is that the people entitled to such discounts must already be members of the hotel's "loyalty program" to claim the discount. So if you haven't taken the steps to become a loyalty member for Hilton, or Marriott, or Starwood, or others, you apparently won't receive the percentage reduction. But it's a minor effort that's needed; you simply call the hotel, ask for an application form, fill it out, and you're a loyal supporter of that hotel. The only price you incur is a constant deluge of literature into your mailbox, advising you of periodic marketing efforts on their part.
Despite the requirement that you join their loyalty program, the hotel chains have obviously offered a compelling reason for using them to make direct bookings. So how have the OTAs responded? What reasons for their use do they continue to suggest?
Among other things, the OTAs (namely, Expedia, Priceline, Booking, etc.) include apartment rentals in the options they offer when a member of the public clicks upon their internet address. But more important, they show the prices offered by several hotel chains for the room you're seeking on a particular date. You are advised of a better rate offered by a hotel chain other than the one you were initially considering.
But the hotel chains respond with a mighty reason for using them. Go ahead and initially consult an OTA, they advise. But once you have seen the best price offered for your stay by a particular hotel, then go directly to that hotel and use them. By doing so (provided you have also joined their loyalty program), you will always get a better room rate than one offered by an OTA. We, the hotel industry (they infer), have declared war against the OTAs", and we always offer you advantages.
I, for one, find that a persuasive reason. And I wonder how long the OTAs will be able to remain in business given the hotels' intention to always undercut their prices for direct bookings.