How do travel apps that claim they can book, for example, a hotel for cheaper than the original price, do it? Is it legit?
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Next time you’re in a hotel, take a look at the door placard. It will state a booking rate WAY higher than what you’re paying. That’s like the “we don’t like you but we will take your money rate.” Then the hotel itself would have a rate where you go down and ask them to book another night. Or walk in off the street.
Travel apps started by taking “surplus” rooms and getting them booked out. As long as a hotel is open, they want to be occupied to keep their employees busy and rooms generating income. But still, there is a certain point where the extra labour of housekeeping or costs of electricity/water would mean they are losing money. A smart hotelier would know that number, would charge travel apps a bit more than that to still make a little profit. At this point, being listed on the travel apps is like being in the yellow pages: if you aren’t there, you might as well not exist, because this is where your customers are searching for hotels. But upset the boat, and your rate will turn into that one on the door
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