From watching Dick Smiths passionate video now being circulated and from what I have read elsewhere, I understand that web searches for hotels/motels via Google are liable to lead to ‘best prices’ sites such as Tivago. Hotels/motels in Australia are now dependent on the big feeder companies to survive. But the motels have to pay a hefty commission. A motel cannot advertise a lower price on its web site under a legal agreement with the feeder company. Dick Smith says it’s better to phone the motel direct and ask for a lower price or an add on such as included breakfast etc. The motel thus avoids paying a hefty commission. He’s hopping mad and the video’s worth watching.
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Most commissions range from around 10-15%…and it generally isn’t the accommodation provider paying for it. When the accommodation booking websites took off, most accommodation providers adjusted their prices to cover the commissions (or compensation as some of the sites call the payments). So, in fact, it is the customer which pays through higher tarrifs.
Also, some of the accommodation websites refuse to pay GST on their commissions/compensations and are based on countries with generous company tax systems (and avoid potentially paying company taxes in Australia)…so not only is the customer paying more, the same customer is missing out on the government collecting the GST/company taxes which should have been paid.
Yes, calling the accommodation provider one will always get the best room rate.
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Welcome to the forum.
I have moved your post to another thread where this very topic has been extensively discussed. You may wish to look back through the previous posts for lots of information about this topic.
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