Timeline for How does Expedia manage to sell a room significantly cheaper than the hotel itself?
Current License: CC BY-SA 4.0
7 events
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| Dec 9, 2023 at 20:26 | comment | added | ihor.eth | Old thread but I think @davidbak is right. I sometimes come to hotel asking for a room and they say they all sold out but Expedia still has rooms. This is why/how I landed on this discussion. | |
| Jan 4, 2019 at 20:52 | comment | added | Tim Nevins | You are welcome to your opinions.BTW, your example is well over 2 years old. | |
| Jan 4, 2019 at 16:53 | history | edited | davidbak | CC BY-SA 4.0 |
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| Jan 4, 2019 at 16:19 | comment | added | davidbak | @TimNevins - sorry, but you're wrong. They do buy room nights, and those room nights become Expedia's inventory, not the hotel's. They also sell rooms through agreements where they have discounts. They also sell rooms where they get a commission. They have a lot of different business arrangements with different hotels. Here's an article that talks about Expedia's "merchant business model". | |
| Jan 4, 2019 at 15:53 | comment | added | Tim Nevins | Expedia or any other aggregator or re-seller do NOT BUY rooms. They have agreements to get a specific discount They gather availability data and present rooms at their prices. If the hotel or another aggregator sells all the rooms at a higher/different price, expedia, etc are out of luck. There are a lot of nuances to hotel room pricing and sales. Hotels are in the business of maximizing per room income. Sometimes that means selling through expedia at a deep discount. | |
| Jan 3, 2019 at 6:29 | history | edited | davidbak | CC BY-SA 4.0 |
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| Jan 3, 2019 at 6:21 | history | answered | davidbak | CC BY-SA 4.0 |