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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 main reason we are able to offer such cheap hotel rates is because we buy in bulk. We promise to fill a certain number of rooms every night to a hotel. We do hae some special methods to predict what kind of rooms we will need. We look at things like special events, when people travel, and other factors to decide how many rooms our site will book.
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 is no catch to these websites besides prepayment. More and more properties these days are charging a deposit up front anyway to hold the room. So if you want to save a lot of money then you can buy in advance with these websites. Most of the sites offering cheap hotel rates will match a competitors price anyway. This is because we all want customers and market share and hope to build loyal customers.
Tags: Hotels
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