Price Hotels Agoda

[CrossBones]

Has the price of hotel rooms nearly doubles in the last year.. or have agoda.com just started putting their margins up massively?

[simon43]

As a (small) hotel owner - the hotel being small, not me - I can't say that I've noticed a price/margin increase. The commission rate charged by Agoda is unchanged from last year and they still offer a rate parity promise (that their rates are the cheapest).

Have you got some examples of this price increase? Bear in mind that it's the hotel who sets the room rate, not Agoda.

Simon

[craigt3365]

Let's move this over to the travel forum. OK?

[ignis]

Have you got some examples of this price increase? Bear in mind that it's the hotel who sets the room rate, not Agoda.

I think people get taken in with adverts stating 70% discount...

I used them in 2009 as it was a place I had never been to before, I paid 1,383 baht per night, showing on there site a saving a lot per night... Hotel was fine except the Hotel room rate was 950 baht per night for that time of the year... So paid almost 400 baht per night x 5 for my stay.....

Not sure you can names Hotels, but a place that I like is a Spar Hotel 4*, have stayed there a few time, last time was 2 weeks ago... I book the room direct with the Hotel, I do check the price with Agoda.com, every time and is always after discount way more then booking direct, I DO mean way more, Agoda.com almost 800 baht per night more 2 weeks ago, over 500 baht per night more in November. 700 baht more last August..

Bear in mind that it's the hotel who sets the room rate, not Agoda..

Maybe they should double check, maybe even phone the Hotels as a customer to be sure they have the correct price.

Edited February 6, 2011 by ignis

[simon43]

Agoda's rate parity promise only applies to online rates, (including those on the hotel's own web-site), and not to walk-in rates, which are impractical to monitor.

Agoda's policy seems to be in line with other online agents, in that they will unlist a hotel which is offering a cheaper rate on their hotel web-site.

It is up to the hotel what contract rates they offer to online agents, and it seems that some (many?) hotels try to recoup the agent commission by simply increasing the contract rate that is offered to the agent by that commission %. I do not think that is the way that online agents intend the system to work... The idea is that the increased quantity of room bookings that the agents generate offset the reduced revenue per room that the hotel receives from the agent.

Be careful when booking online, as the initial rate that is promoted may not include service tax, booking fee etc. That can increase the final cost quite substantially.

Simon

[ignis]

Agoda's rate parity promise only applies to online rates, (including those on the hotel's own web-site), and not to walk-in rates, which are impractical to monitor.

Agoda's policy seems to be in line with other online agents, in that they will unlist a hotel which is offering a cheaper rate on their hotel web-site.

It is up to the hotel what contract rates they offer to online agents, and it seems that some (many?) hotels try to recoup the agent commission by simply increasing the contract rate that is offered to the agent by that commission %. I do not think that is the way that online agents intend the system to work... The idea is that the increased quantity of room bookings that the agents generate offset the reduced revenue per room that the hotel receives from the agent.

Be careful when booking online, as the initial rate that is promoted may not include service tax, booking fee etc. That can increase the final cost quite substantially.

Simon

Sorry cannot work that out.. my said Hotel a few moments ago Agoda.com booking online = 41 US$ [states normal price 88 US$] breakfast included... The Hotels website same room same date 590 baht + buffet breakfast 188 baht extra...

No idea about US$ exchange rates, but feel sure 878 baht with breakfast is no where near 88 US$ ? there again I maybe wrong, to me even the huge discount on Agoda.com is way more than this ?

[kropotkin]

Best way to go:

Check the price with several internet agents.

Check the price on the hotel's website.

Next have a thai phone the hotel - usually that will give you the cheapest rate, be sure to let the thai speaker make the booking on your name, to avoid discussion about the price afterwards.

Not married to a thai? Pay a thai 100 baht......(or more, depending on how much you save).

[brownknees]

As an aside to this,I used Agoda in INDIA.I booked two hotels one was a cheapy for one night(Varanasi)and one was 4 star (great hotel)in Kolkata.On arriving at the cheapy they said they had no booking from Agodaand that this happened often so I had to pay cash!Next morning the "manager was trying to get Agoda to send the money so he could refund it.Now we had to leave at lunchtime for the airport and he said "oh sir they cannot send so sorry".Realised this was a scam,however the 4 star one was payed as per booking so looks like they think a tourist can afford to pay for a cheap room again !!Will not use this company again though.

Expedia (in INDIA)was the same ,arrived in Darjeeling and was told the four nights had not been booked but they let us have a room and the fee turned up on the last day so all OK!!!

[phuketrichard]

Agoda prices seem to be in line with outhers ( like hotel travel, asia rooms, Accomline) but they are busy expanding and making deals around town and had to buy out the orginal owner

One thing i hate about Agoda is when u check the price it is NOT the full price and u need enter all the dates and keep clicking to next page to get full price. I prfer to see the full price right at the start.

[CharlieH]

I always use Agoda ,Trip advisor etc to find the hotels and feedback about them, then contact the hotels direct. Cut out ANY middlemen as its always cheaper and safer and never had any problems with "not received booking" etc.

[kropotkin]

Best way to go:

Check the price with several internet agents.

Check the price on the hotel's website.

Next have a thai phone the hotel - usually that will give you the cheapest rate, be sure to let the thai speaker make the booking on your name, to avoid discussion about the price afterwards.

Not married to a thai? Pay a thai 100 baht......(or more, depending on how much you save).

And if you are not living in Thailand:

Do not worry about finding a hotel room, no need to book in advance, except perhaps around New Year.

Find hotels on the internet, write down their phone numbers, buy a sim at the airport, and pay 100 baht to a thai to phone the hotel for you from the airport.

Tired after the flight? Relax at Magic Food downstairs the terminal, cheap & delicious & an excellent introduction to real Thailand.

The girls that work there wil be happy to make a phone call for you - do not forget the 100 baht (or more, would be good for your karma 555).

[keestha]

I always use Agoda ,Trip advisor etc to find the hotels and feedback about them, then contact the hotels direct. Cut out ANY middlemen as its always cheaper and safer and never had any problems with "not received booking" etc.

Exactly. If you contact the hotel directly, you might also be offered a wider range of choice as far as different types of rooms is concerned.

[sirluke1944]

As a (small) hotel owner - the hotel being small, not me - I can't say that I've noticed a price/margin increase. The commission rate charged by Agoda is unchanged from last year and they still offer a rate parity promise (that their rates are the cheapest).

Have you got some examples of this price increase? Bear in mind that it's the hotel who sets the room rate, not Agoda.

Simon

[sirluke1944]

As a (small) hotel owner - the hotel being small, not me - I can't say that I've noticed a price/margin increase. The commission rate charged by Agoda is unchanged from last year and they still offer a rate parity promise (that their rates are the cheapest).

Have you got some examples of this price increase? Bear in mind that it's the hotel who sets the room rate, not Agoda.

I've stopped using Agoda, found you can only use theyre Price Match Promise if you've already booked with them. I pointed out to them that I could Book the same hotel, same dates, etc. at half theyre advertised price, sent them evedence of the comparison, but they didn't want to know.

Simon

[simon43]

Ignis, a couple of points:

The 'normal price' of $88 that Agoda quotes is the 'rack rate' for the room. This is the full price of the room that the hotel might usually charge, but in practice it is a rather ficticious amount that is rarely charged. It helps to give the impression that the room rate that the agent is offering is a bargain when compared with the normal rate.

If the hotel web-site is offering the same room/deal at a rate lower than that it's agents, then the hotel is breaching the T&Cs of these agents, and may well find itself unlisted from their web-sites.

Brownknees, did you show that hotel in India your Agoda voucher confirmation? Your booking is a guaranteed booking, and the hotel is obliged to locate another similar hotel room for you at their own expense if they cannot accommodate you.

(By the way, I do not work for Agoda! But most of my day is spent with the management of online bookings/agents etc)

Simon

[citizen33]

Ignis, a couple of points:

The 'normal price' of $88 that Agoda quotes is the 'rack rate' for the room. This is the full price of the room that the hotel might usually charge, but in practice it is a rather ficticious amount that is rarely charged. It helps to give the impression that the room rate that the agent is offering is a bargain when compared with the normal rate.

If the hotel web-site is offering the same room/deal at a rate lower than that it's agents, then the hotel is breaching the T&Cs of these agents, and may well find itself unlisted from their web-sites.

Brownknees, did you show that hotel in India your Agoda voucher confirmation? Your booking is a guaranteed booking, and the hotel is obliged to locate another similar hotel room for you at their own expense if they cannot accommodate you.

(By the way, I do not work for Agoda! But most of my day is spent with the management of online bookings/agents etc)

Simon

Simple fact is that the online agents aren't as cheap as they were (and in my experience Agoda isn't one of the cheapest of these anyway). Ignis's comments are spot on and no amount of obfuscation will change that.

[PattayaParent]

I always use Agoda ,Trip advisor etc to find the hotels and feedback about them, then contact the hotels direct. Cut out ANY middlemen as its always cheaper and safer and never had any problems with "not received booking" etc.

Exactly. If you contact the hotel directly, you might also be offered a wider range of choice as far as different types of rooms is concerned.

For my favourite hotel in Bangkok, Agoda charge 50 Baht more for booking through them than if I book direct with the hotel.

Hardly massive margins.