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After all, you or rather the hotels get what you pay for!

People wonder why they can book a hotel room for less via an agent then they can direct with the hotel. We will explain why in logical order;

1) Many tour group hotels only maintain direct reservation rates to make it look like agent / tour group rates provide substantial discounts when they do not.
2) Many hotels cheat on taxes and service charges. For example, when they deal with a foreign agent / tour operator, hotels will use so called "collection" bank accounts which are actually offshore accounts which they do not declare to the tax man (in places like Indonesia this is the norm and there is even a name for it; the "Twin book system" with one set of accounts for the management, another for the tax man).
3) Many hotels assign guests from agents / tour operators to older / less desirable rooms.
4) By selling rooms in bulk to agents / tour operators, hotels reduce their administration costs.

Other related pages:

The "Great" Service Charge Con
How to make sure the hotel staff get their tips / service charges
Screw Indonesia

Thank you

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