Search Smarter

Key Messages

With 500 hotel bookings happening online every minute, it’s more important than ever that consumers pay close attention when booking reservations online. New research reveals that online and fraudulent sites are on the rise.

  • Online travel bookings are a big business, which is great for [name brand, hotel company, etc.].

  • It’s an exciting time for our industry. 

    • Our direct-to-hotel online sites are incredibly dynamic and innovating around the online space to enhance the guest experience.

  • To avoid aggravation and ruined vacations, it’s important consumers understand how to slow down, search smarter and make the best decisions throughout the booking process for themselves and their families.

Online booking scams are on the rise as fraudulent websites and call centers continue to trick consumers.

Consumers are being increasingly misled into making hotel reservations through fraudulent websites and call centers operated by third-party affiliates of online booking agencies – giving the false appearance of being a hotel’s website.

  • In 2015, just 6% of travelers reported booking on what they believed was a hotel’s official website, only to find they had booked on a fraudulent site not affiliated with the hotel. Just two years later, the number of travelers who have experienced this has nearly quadrupled to 22%.

  • That amounts to 55 million in bookings of this type each year, translating to $3.9 billion in bad bookings.

  • As consumers increasingly move to mobile booking, smaller screens also make it harder for consumers to differentiate between the scam site and the legitimate hotel’s website.

  • Seniors have major concerns when it comes to booking online – many of which are due to bad experiences. In fact, 1 in 10 consumers 65 or older say they have accidentally booked with a fake site when intending to book directly with a hotel.

Consumers want transparency and choice throughout the booking process and don’t realize that online booking sites – or “digital middle men” – often use misleading marketing practices.

  • Many consumers shop with online travel agencies, third-party affiliate sites – or, “digital middle men” – because they believe these sites present them with the best deals and allow them to compare all the options.

  • In reality, these sites can present consumers with a series of false choices and misleading marketing messages that can lead to incredibly aggravating experiences and ruined vacations. 

  • False Choices – The overwhelming majority of consumers (74%) are unaware that they’re just comparing between the same two companies: Expedia and Priceline.

    • Expedia owns thousands of online affiliates, including Trivago, Travelocity, Hotwire, Hotels.com, Egencia, CarRentals.com, Classic Vacations – controlling 75% of the online travel marketplace.

    • Priceline owns Kayak, Booking.com, Agoda, Rentalcars.com as well as thousands of online affiliates.

    • Together, Expedia and Priceline control 95% of the online travel market.

  • False Discounts – Recent data shows 79% of consumers use “digital middle men” because they believe they will find better deals. That belief is fueled by misleading marketing practices like “slash” or deep discounted pricing, which is not based on an actual room rate set by the hotel. Booking directly with the hotel results in a better value for consumers.

  • False Sense of UrgencyAlmost half of consumers (45%) have reported being influenced by messages that say: “Only 2 rooms left!” These messages aren’t based on the full room inventory from the hotel. They’re just marketing tactics used to make consumers book faster. By going directly to the hotel website, you will ensure you’re getting the most accurate information.

  • When consumers learn about the false choices and misleading marketing practices promoted by booking sites, their confidence in them plummets. 

  • Seniors in particular take issue with the lack of transparency in booking with “digital middle men.” 70% of consumers 65 or older reported having less confidence in online travel agencies after learning about the mass consolidation in the market.

Consumers need to know that “digital middle men” are in the booking business, not the hospitality business.

  • Your vacation doesn’t start when you check-in to your room… It starts when you book your room.

  • Many of these “digital middle men” are only motivated through the moment you click “submit.”

  • When consumers book directly with the hotel and establish that relationship from the beginning, they are in a much better position to address issues if something goes wrong.

There are a few simple TIPS to help ensure guests have the best experience from beginning to end.

  • Look before you book. Some of these third-party booking sites will go so far as to use the hotel’s brand name in the URL. Always check the URL address. Although the hotel name may be part of the URL, double check the website address to ensure it’s not a third-party vendor stealing a hotel’s identity. Make sure you know who you’re giving your information to.

  • Take advantage of loyalty programs. Sign-up for loyalty programs at your favorite hotels. They’re free and offer great, unique benefits. Booking directly with the hotel is the best way to ensure you’re getting your loyalty points.

  • Ask the right questions. Be sure you call the hotel directly and ask the right questions when booking to ensure you protect your reservation, your points and your credit card information.

    • What is the cancellation/trip change policy?

    • Is the site, in any way, affiliated with the hotel?

    • Is it a secure payment site? The URL should have a small lock and should start with https:// as opposed to just http://.

  • File a complaint with the Federal Trade Commission if you have experienced a problem with any of these affiliate websites.

Search Smarter. Look Before You Book.