Why won't hotels in Thailand match online prices when asked directly?

Oct 5, 2023
a year ago
Jack ****************
ORIGINAL POSTER
Riddle me this folks... and trolls try to control yourself- I'm just trying to learn something. Why are hotels (limited sample size- but 100% of 3) unwilling to match internet prices? Like, today I was looking at a room for 1213tbh, but there wasn't an easy way to give a preference for where in the building so I contacted the hotel directly. They wanted 3000tbh. I asked if they would give me the other price and they said no I should book online.

But like... if I book online they will make EVEN LESS right? Shouldn't they be happy to take the business back from the aggregator?
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TLDR : Answer Summary
The discussion revolves around the experiences of expats trying to book hotels in Thailand and their difficulties in getting hotels to match online prices. Several users suggest factors like hotel staff limitations, agreements with booking platforms, and the influence of online travel agencies (OTAs) on pricing strategies. The posts highlight a recurring theme that hotels may stick to their higher prices in person due to various contractual obligations and business practices that limit their ability to provide competitive rates directly.
Terry ********
Stop asking why in Thailand or your head will explode.
David **********
They have to give a certain number of rooms to the booking platform as a condition of using it.
Mark *********
The hotel will get different net rates from the supplier depending how many units they sell per period. With online suppliers now so important to hotels they maximise sales through that route. People "popping in" are irrelevant - mostly - though sometimes you can blag a serious bargain that way. Part of successful guesswork could be distinguishing between between private and very small group hotels and the chain majors, the latter with major head office control.
Dan *******
Just use agoda
Jack ****************
ORIGINAL POSTER
@Dan ******
I'll give you the benefit of the doubt here. The problem with reserving through an aggregator is that it will say "pool view" not "pool side" and if you want to be on the first floor adjacent to the pool you cannot specify and confirm that.
Rob *******
Because they no training yet on this. Thai hotels are making more than enough money to have to worry about training staff for this...๐Ÿ˜‚๐Ÿ˜‚
Mithlesh *********
If they give room through an online website, that website is holding all the responsibilities of room and they are also giving them insurance if something happens to room. Secondly its amount of booking they are getting from online websites are much higher than direct booking. So for an individual it may seem like they are not making money, but they do
Mike *********
Actually been advised to leave the desk before when I went to book a room (walk in) and book it online with a certain company, then they can give me cheaper price with breakfast Inc + free upgrade.
Fra *****
@Mike ********
chatting to the desk staff helps often to figure the option of a deal on side to get it discounted or upgraded
Bob ********
The real issue is all the booking companies are owned by the same corporation. To get at the top of the list in a particular town or city, it has to get maximum bookings online in that area. By giving you a discount they may lose their position on the list as well as potential free marketing. As others say they lose both ways
Matthew **********
Because its impossible to speak to the boss. He's on the beach.
Bill *********
Nice boobies!
Michael *******
Robert **********
This is true. Our friend used to work for Agoda. They reserve blocks of rooms, so the hotels often will not match the low rates.
Michael *******
There are many hotels from budget to mid-range normally, that offer discounts at the front desk v online. It varies greatly and depends on the season, hotel etc.
Michel *************
Because big sites like AGODA, Booking... are buying thousands of rooms in advance at a steep discount. Same is most industries... 'size matters'
Pui *****
@Michel ************
they don't buy any rooms, you must not know how OTAs work. They make a commission off every booking they send a hotel.
Mally *******
Just walk in and you will get a good price,we never book anywhere,plenty of hotels about,my wife's Thai so she always gets a good deal
Ursula *********
It is what it is, and not our problem.

The last time, upon check out, I asked the concierge for a business card with phone and email address, so I could book directly, like I used to do 10 or 15 years ago. He gave me one, but warned me that direct booking would be more expensive and that breakfast would not be included. So ๐Ÿคทโ€โ™€๏ธ

And that's in Malaysia, not Thailand.
Nick *******
The only 2 ways you will get best price is online or when you turn up at the hotel. You are wasting your time if you call the hotel. If they not help you at the hotel, then just book it online while you are at rhe reception desk, then just smile.

You Win.
Srini ******
@Nick ******
also remember when you are at the hotel asking for a room you are captive they don't have to give you a discount
Edna *******
@Nick ******
thanks for the kind suggestion.
Todd *********
Good lord, this is an amazing read of how many people are utterly clueless as to how the hotel aggregators actually work. Amazing. Some of you should take up residence in your own basements and never exit.
Edna *******
@Todd ********
say, have you ever considered there are individuals out there that rarely use hotels? Usually only for a rare vacation or out of necessity due to loss of residence. Not everyone is savvy about everything, so stop and think!
Todd *********
@Edna ******
i have indeed ๐Ÿ™‚ and god love em. Just happy I'm not one of them. But if you had stopped to think, you would probably know that already. I also tend to NOT comment on things that i really have no clue about. I find that helpful. But obviously this little bit of life wisdom is not universal.
James *********
Just wondering, are you related to Billy B?
Todd *********
@James ********
gotta be brothers at very least
Alistair ********
Where's my bong?
Henrik ****
Try look at this product. Let's say you have 100 hotel rooms. It gives you 3000 potential bookings in 1 month. For each day no one books a room, you lose 100 "items" to sell. Maybe you will get more by selling it day by day, but the risk of losing it is much more likely. Therefore, predictability is key in such business.
Tony ******
Never over the phone they have no idea who you are they have contracts with the apps breaking them has major penalties it's not about you
Anton ********
Justโ€‹ book it online in front of them, show them pay slip. In Thailand it is like this.

In Laos totally opposite, you need to come and ask, on agoda the same room is 3-4x more expensive
Michael ********
@Anton *******
yes loas is funny i have asked room cost in Thai the same time another person was asking in English on same desk and we had two different prices.
Richard *********
they have a contact with hotel websites ( Like ( agoda, expedia,hotels,com) that they WILL NOT offer a lower online price>
Henrik ****
It is normal that you get a discount by booking online. If they were giving the same price at the counter no one would book online. Online bookings are a great advantage for the hotels.
Wylie *******
@Henrik ***
if you pay attention to any of these forums you'd realize that most people aren't as spontaneous as you must be. So many people plan every detail and still stress out. People also booked ahead way before all the booking sites.
Wylie *******
@Henrik ***
I'd say most people aren't booking online or in advance because of the discount. It's for peace of mind that they'll have a room when they get there and avoid the stress of having to find one.
Dan ********
@Henrik ***
people booked in advance long before the internet and 'online booking'. Try going to New York for the weekend and finding a room upon arrival. You'll still be looking on Tuesday morning. People book in advance because they want the convenience of have a room booked upon arrival....
Anton ********
@Henrik ***
nope, they have to pay some percentage to Brooker. So for them is much more cost effective to rent without agent involved.
Henrik ****
@Anton *******
, yes, but it is still an advantage for the hotels because of easier administration and much more predictability when getting the bookings in advance.
John ********
No other room in entire Hotel will work you except for this one?
Srini ******
All the people who are jumping in and saying TIT should know this is the case in the USA as well. Due to the complex pricing..yield demand dynamic pricing..corporate discounts..bulk booking rates.. and individual Hotel cannot often offer the best price since they have to go with their price list. I had her telling telling me to book online to get the best price. This has happened several times when I booked in the US.
Todd *********
@Srini *****
anyone saying 'TIT' in this case, is absolutely clueless
Michael ********
@Srini *****
Same all over the world my wife used to work for agoda and then other companies after that setting up booking systems for hotels all over the world. I even had to helped her doing one for Wales
Srini ******
@Michael *******
Makes sense.. but the op seems to think if you go direct it should be cheaper... ironically it might be more possible in Thailand then other places.
Henrik ****
@Srini *****
, no, it is part of the deal with the booking portals that they get a discount to offer their customers. So if you are giving the same discount at the counter you are breaking the agreement with the booking portals.
Richard *********
@Henrik ***
not true: Portal gets no preferred / discount rate

The hotel sets its price and also sets the commission the hotel pays out:

The higher the commission,the higher the hotel ranks in the list
Colin ********
It's because 70-90% of the hotels rooms are pre-booked and paid for by the big online companies at a steep discount thus guaranteeing occupancy, bearing in mind hotel rooms are virtually 100% profit, thereby leaving the hotel with very little inventory to sell for themselves.
Colin ********
@Henrik ***
Exactly and the fact that there are virtually no extra costs involved in letting the room to not letting it
Chris *********************
@Colin *******
you can walk into any hotel in 90% OF PROVINCES and get a better price than on line companies eg. Agoda. Booking. Com.
Wylie *******
@Chris ********************
not once in my experience. Which was why I suggested to check online and if they won't give you that price then just step away from the counter and book it online.
Colin ********
@Chris ********************
did I ay you couldn't? I was answering about why they are different for ONE hotel that has both.
Steve *******
@Colin *******
Virtually 100% profit? You are joking right? Any idea of the overheads involved in running an hotel? Obviously not!
Colin ********
Whether the room is let or not the other costs remain the same.
Colin ********
@Steve ******
yes, I managed hotels for 20 years. There's little cost involved in the actual rooms.
Steve *******
@Colin *******
Then you should know it's nowhere near 100% profit
Colin ********
@Steve ******
I saying the actual costs of a room are near zero, forget about everything else. The only cost really involved in a room is the chamder maid in the morning which is negligible, compared to the other costs in a hotel. So yes, there is near 100% profit and a room.
Steve *******
@Colin *******
You really have no idea and you say you worked in the hotel industry for 20 years. It obviously wasn't the business side of running an hotel!
Colin ********
@Steve ******
you have no idea, tell me what are the costs of letting a room vs the costs of not?
Jack ****************
ORIGINAL POSTER
@Colin *******
I don't see how you can neglect the capital investment. You amortize it, but is real. Very very real.
Henrik ****
@Colin *******
, that is not how it works, sorry. The hotels get paid per booking, but online bookings are happening in advance and money is transferred directly to their bank account making things more easy and more predictable for the hotels.
Colin ********
@Henrik ***
I was actually told this by a hotel employee
Henrik ****
@Colin *******
, I guess what you are talking about is hotels being prebooked by travel agencies.
Henrik ****
@Colin *******
, is probably not true. At least the big booking portals like Hotel.com etc. is not paying until they get paid themselves.
Michael ********
@Colin *******
What big online companies are you talking about I know for a fact booking or agoda dont practise that business model
Ang *****
@Michael *******
agoda and booking to name two. They do pre purchase rooms. I had this conversation in Malaysia.
Michael ********
@Ang ****
Ok if you insist. But i just asked my wife and she checked with one of her old colleagues who still works at Agoda and they dont
Colin ********
@Michael *******
I was led to believe that's how agoda, booking etc worked, and it would make sense
Michael ********
@Colin *******
No its not how they work they only pay if room gets booked or paid commision if customer pays at hotel. My wife used to be in the hotel online booking stuff before covid including Agoda.

Inbound tour companies such as TUI do room bookings like that for package tours.
Jacob ********
Never booked a room online ever and never had any issues finding a place.
Chris *********
@Jacob *******
why? You save quite a bit of money.
Jacob ********
@Chris ********
Not where I stay besides cheap enough already.
Jack ****************
ORIGINAL POSTER
@Jacob *******
I am also often slow to adopt to the new ways. I think this area of the internet initially added a lot of value and made things easier. But now that most of the world is dependant on it they are making it shittier and shittier. Increasing cost and subtracting options.
Ian *********
This happens the world over from my experience
Richard ******
Pot luck, some do some don't
John **********
From my experience they charge you the walk up price even if you call them up to book a room.
Gary ****
Common sense and logic is actually illegal in Thailand, that's why you never see it practiced.
Ang *****
Suggestion - as it was never confirmed to me. Booking agents are contracted to a set number of rooms. Hotel is not. Therefore agents need to lesson liability by offering super cheap deals. If they sell at cost - they still break even.
Richard *********
@Ang ****
100% WRONG:

Hotels set the price!!!!
Andy ********
@Richard ********
it isn't 100% wrong, Booking and Agoda have a variety of different contracts with their hotels. The model you describe is one of those but definitely not all.

I agree the statement is incorrect but not 100% wrong. Yes hotels do set the price or more accurately price range.
Richard *********
they have a contract with the hotel sites, to never offer a lower price, AS MOST of their low season bookings come form the sites, they will not give a lower price

I worked for agoda when it was planet holiday back in 99
Ang *****
@Richard ********
if that is true - then my offer to stay direct vs the booking agent (at less) would be acceptable.
Michael ********
@Ang ****
not with booking or agoda but yes with inbound tour agents such as TUI or Thomas Cook etc etc
Michael ********
Same all over the world, there are many different algorithims used to determine the internet price and the person who chooses this is usually in head office in case of chains and has nothing to do with front desk, some also have agreements not to sell for less than list price on the front desk.

Some bit of advice and as you have asked about marriage visas before. You should each open up a booking.com or whatever you use one with your thai other half and one with yourself from your home country and check the prices. One of the preferences hotels can pick is discounts for overseas or domestic rare to find but does happen.
Mitchell *******
I was going to state that there are many varying types of deals the hotels will have with sites like booking etc. But I Think the bigger the chain, the better chance of getting a better deal directly from the hotel.
Stelio ***********
@Michael *******
this is so very true.
Andy ********
@Michael *******
great tip.
Wylie *******
I've ran into the same thing. If you're actually there see if the room or location you want is available, step back from the counter, book that same room type online, show them the reservation and ask for that room.
Bonnie *******
We have usually been successful in dealing straight with the hotel
Andy *******
TIT, This is Thailand. Not USA, UK, etc.,
Tony ******
@Andy *********
yep don't question just laugh motto works for me as does kiss keep it simple stupid ๐Ÿ˜‰ lol
Brandon ************
Because you're talking to a staff member that not only has no incentive to help you and it will cause them more work to do so, they also don't have any authority and no initiative.

Thais don't see a problem and want to fix it because that's not their job. And if they try to fix it or make a suggestion to their boss they'll probably be reprimanded for not minding their own business and not doing exactly as told.
Rob *******
@Brandon ***********
this is embarrassing for the country but 100% correct.
David *******
@Brandon ***********
i could never understand that either but accept it that thai cannot question authority . If you want a better rate use the internet . Some things wont change
Lynnette *******
@David ******
in UK the price on internet is often different to at the hotel.
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