Tuesday, January 27, 2009

How Cheap Hotel Rates website work

By Chris Linch

A lot of people out there do not understand how these website offer cheap hotel rates online, even cheaper than the hotel. How do these sites work and is the hotel rate really cheap or is it just a ploy to get your business?

Because I own one of these sites that sell your rooms at cheap hotel rates, I will tell you the sites are real. There are many things that go into the fact that the rates are cheaper than the hotel, but I will give you a few reasons why.

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 then establish a contract relationship with the property that make them reserve the rooms for us. In return, we get a large discount for filling those rooms. This rate is known as the wholesale rate. This is a rate even lower than our cheap hotel rates we display.

In turn we add a small markup to our hotel rates which is our cheap hotel rate and sell it to you less than you could get it directly from the hotel. These cheap hotel rates are only available, however, through prepayment. That is because we have purchased these rooms at these rates up front from the hotel.

Besides being prepaid there is no catch to cheap hotel rate websites. You can save a lot of money, especially in advance by using these sites. Plus most cheap hotel rate sites will match a competitors price if you find one that is lower than theirs. This is because competition is stiff, and lodging prices change a lot.

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