How do travel apps that claim they can book, for example, a hotel for cheaper than the original price, do it? Is it legit?

Question

How do travel apps that claim they can book, for example, a hotel for cheaper than the original price, do it? Is it legit?

In: 235

Answer 1

Hotel rooms are almost never rented for the listed price; there are a near infinite variety of discount schemes, as it is better for the hotel to rent a room for half the “rack rate” than to let it sit empty for a night.

In the case of the travel apps, one tactic is that they get a huge discount from the hotel in exchange for guaranteeing or even outright buying a large block of rooms.

The hotel industry is fiercely competitive and even a few percent higher profit is worth fighting for.