The reason Internet rates are often cheaper than walk-in prices for larger hotels are;

A) Larger hotels do not get many, if any walk-in guests. So by having a high "Rack (walk in) Rate" they can do what the supermarkets do (Special price for special Internet customers, 70% discount off our standard prices). The rack rates are not realistic but it makes the tour group guest also think they have a bargain when they simply have been duped.

B) Internet rates come from wholesalers who are meant to provide their lowest rates by contract to tour operators (where they sell a package including the flight) only, because they may get a special government incentive to bring tourists to their country and it is perceived that is what brochure tour package companies do, as opposed to serving tourists who have already decided to go to that country. Wholesalers also benefit from volume discounts of course plus because you mostly have to pay in advance with Internet / tour companies, the hotel gets their moeny before you check out (not a good thing).

C) Internet bookings often involve agents outside the country of the hotel, which means less sales tax is due (as the hotel maximum only levies and pays sales tax on the rate they give the wholesaler and may even get off paying tax at all). Bookings made via overseas agents help bent hotels (many big hotels are) run the old twin book system where overseas incomes can be hidden from the tax man.

D) Most Internet bookings claim to include service charges when they do not; how can they? Service charges are around 10%. what these booking agencies actually offer are Net / Nett rates which include all due taxes (see above). Unfortunately what this means is when you book via the Internet they and with it you are cheating the hotel staff out of service charges, so please remember this as many hotel workers earn just US$50 a month.

That is why there is a difference.

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