Is It a Better Deal To Book a Hotel Directly or Through a Third-Party Site?

In the age of online booking, finding a hotel room has never been more convenient — or more complex. Travelers are presented with a range of pricing, perks, and policies that can overwhelm even the most experienced globetrotters. Adding to the complexity are third-party sites, such as Priceline or Expedia, that promise big savings. Around 60% of hotel reservations today are made through third-party channels, yet many travelers still prefer to book directly. So, which is the better deal? The answer depends on when you’re booking and what type of vacation you’re going on. Here are the pros and cons of using a third-party service to find a hotel room versus booking directly.

When Is It Cheaper To Book Using a Third-Party Site?

Third-party booking sites, also called online travel agencies (OTAs), act as intermediaries between travelers and hotels. Some of the most popular OTAs include Hotels.com, Expedia, Tripadvisor, Booking.com, Hotwire, Kayak, and Priceline. An estimated four out of five travelers will visit an OTA at some point during the planning process, typically to read reviews, compare rates, or view amenities. When travelers do decide to book through an OTA, it’s likely because they found an offer they can’t refuse.

Deals Abound — If You Know Where To Look

OTAs typically take a percentage of the room cost as commission, which is paid to them by the hotel when a customer pays. The hotel makes less money this way, but it increases the likelihood of high occupancy by having rooms advertised on multiple platforms. Third-party sites offer deals all the time, and they might be better, worse, or the same as deals on the hotel’s website, so price comparison during the planning process is key.

Offseason and Last-Minute Trips

OTAs also secure hotel rooms through discounted wholesale (bulk) deals, in which they resell the rooms at a markup that still undercuts the standard rate. Hotels again benefit from occupancy during periods of lower demand, travelers score a deal, and OTAs get part of the revenue. This means hotel rooms for offseason and last-minute trips in particular could be cheaper on third-party sites than when booking directly.

Mystery Deals

Another way to save money on a hotel is through “mystery” or opaque deals, in which the hotel name and address are usually not revealed until after booking and payment is completed. This requires some flexibility on the traveler’s end and isn’t suitable for everyone. Take, for example, Priceline’s “Express Deals.” You choose the price you’re willing to pay, and Priceline will match you with a hotel (or car rental company or flight carrier), but you won’t see the name of the hotel until after you have paid. These deals aren’t flexible and are nonrefundable, but travelers can score discounts of up to 60%. 

Flash Sales

OTAs occasionally run last-minute flash sales to sell leftover inventory. Unlike “mystery deals,” flash deals let you know which hotel you’re booking, but these discounts typically come with stricter cancellation policies and zero flexibility. So, if you’re heading out on a spontaneous trip or looking for a last-minute change, this could be a cheaper option than booking directly, but remember to read the fine print.

When Is It Cheaper To Book Directly?

Though third-party sites can offer better deals in certain situations, direct bookings can also provide excellent value, especially when planned in advance.

Early-Bird Deals

If you’re planning a trip well in advance, booking directly often gives you access to the same rates advertised by OTAs, with the added benefit of perks exclusive to direct guests. To compete with third-party sites and avoid paying them a commission, hotels sometimes offer extras for direct booking. This often looks like 10% to 15% off the regular rate (to match the OTA discounts), as well as other benefits like waived resort fees, early check-in or late checkout, and complimentary breakfast, parking, or spa access.

When the Hotel Has a Loyalty Program

Many major hotel chains offer free loyalty memberships that provide instant discounts and allow you to earn points toward future free stays, upgrades, or other perks. So, while hotel chains with loyalty programs may be slightly cheaper on third-party booking sites versus booking directly, it’s worth considering the value of any extra loyalty benefits — because most hotels don’t award loyalty points or perks for bookings on OTAs like Expedia. On the other hand, small and boutique hotels without loyalty programs might offer lower prices than third-party sites to avoid paying them a commission fee.

Best Rate Guarantees

If you come across a better room rate on a third-party booking site, remember that many hotels advertise a “best rate guarantee.” If you find a lower rate elsewhere, share it with them, and they’ll often offer to match the discount.

Potential Pitfalls of Third-Party Hotel Booking Sites

While third-party platforms may offer convenience and steep discounts, they sometimes come with trade-offs that might cost you more money in the long run.

Hidden Fees

Some OTAs offer a lower rate but tack on additional fees. Sometimes, an OTA will advertise at a lower price and hide specific fees, such as resort fees or local taxes, bringing the final price in line with, or even above, direct booking costs. Third-party sites may also have higher change or cancellation fees than the hotel’s own site.

Limited Customer Support

When a traveler books with a third-party site, their reservation is technically not with the hotel. As Phil Dengler, co-founder of “The Vacationer,” explained to HuffPost, “In other words, your reservation is with them [the third party] and not the airline or hotel. That means you contact them for customer service instead of the airline or hotel.” This creates a layer of complexity if changes or cancellations must be made. And if you have specific room requests, they’re more likely to be honored if you booked directly with the hotel.

Scams and Fraudulent Booking Sites

While most major third-party booking platforms are legitimate, scams do exist. Avoid using lesser-known or suspicious sites — if a deal is too good to be true, that’s probably because it is. The Better Business Bureau (BBB) offers guidance about avoiding hotel booking scams, which can include fraudulent sites that mimic the look of well-known platforms.

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