As millennials, we’ve gained quite a reputation on social media these days. We’ve been criticized for being narcissistic, obsessed with technology, lazy … the list could go on and on. A lot of our better characteristics are ignored.
Millennials are adventurous nomads with an urge to explore the world. According to the Boston Consulting Group, millennials are far more likely to express a desire to travel as far as possible and visit as many continents as we can.
The Brookings Institution, a think tank and research group out of Washington, D.C., said data shows we have the highest rate of university education of any generation since 1968.
But why does any of this matter? We want to travel, but we’re also broke from paying tuition. Since we’re “obsessed with technology” (a.k.a. actually comfortable using it) and we’re thrifty, we’re going to use tech to save money while pursuing our dreams.
Enter Expedia, Travelocity, Hotels.com, Booking.com and hundreds of other online travel agencies, more commonly known as OTAs. Fun fact: The vast majority of them are owned by Expedia and are the exact same service.
They claim to aggregate prices and give you discounted travel and hotels or at least show you the best available prices. It’s an easy, one-stop shop that will save you while travelling, right? Turns out, not so much.
How do I know this? I’ve spent five years working at a hotel and I couldn’t even try to count how many complaints I’ve had from customers who have booked through OTAs. Here’s some help on getting the most bang for your buck.
Why OTAs suck
Best price guarantees are just plain bunk. Hotels update their OTA pages themselves and standard practice is to use their daily rack rates. The rack rate is what hotels choose as a starting point for negotiations. When you call a hotel directly, it’s the first rate they’ll quote you.
Regular travellers will tell you there are tons of discounts hotels are happy to give if you call them directly. They have discounts for groups, students, military, business, events, multiple night stays and so on. Also, big hint, they will price match OTAs. Sometimes, they can do better.
Any discount they offer the customer directly is actually upping their profit margin. OTAs take an average of 20 per cent off whatever you’re paying for your hotel. Giving you a big discount sometimes saves them money.
If you do find a discount that’s better than what the hotel is offering, which is rare, beware your reservation doesn’t say “run of the house.” It means the hotel has licence to put you in whatever room they want. You requested a non-smoking room with two queen beds for you and three friends? If the hotel books up, have fun getting a little too cozy in a stinky smoking room with only a twin bed to share.
Forget preferential treatment if you use an OTA. I promise you will never be the guest getting bumped up into a fancy suite. That service is saved for guests who pay direct.
If anything goes wrong, there’s literally nothing staff can do to give you a discount. Your stay would have to be an absolute disaster for them to refund you the night entirely – which is the only discount option OTAs provide hotels.
If that is the case, prepare to make annoyingly long phone calls where you may spend hours on hold. Both you and the hotel staff will have to make these calls and it could take a while to get your money back. The same applies to changes or cancellations.
While I can only speak from the hotel industry standpoint, the logic carries over to airlines.
One of the biggest misconceptions about OTAs is they make it for someone else to pay and book for you. Are you stranded somewhere? Have you just had your money and/or credit cards stolen? Are you having what can basically be characterised as the worst trip ever? Buckle in, it might not be over yet.
Even if you’re lucky enough to have a loved one bail you out, most hotels still require photo ID upon check in as well as a cash deposit or credit card preauthorization. This is in case you trash the room, order room service or make long-distance phone calls.
Many hotels may just make you pay cash for food and block long-distance calls before letting you in. Others may demand an additional process of getting a credit card authorization form filled out. So be prepared to wait a while before they let you in, if they let you in at all. If your loved one calls or emails the hotel directly, a lot of this can often be taken care of before you arrive and you’ll be saving them money.
Where OTAs shine
Where I have absolutely no shade to throw is photos and review processes. OTA sites are amazing for researching hotels and the areas in which you’ll be staying. Customers are encouraged to upload their own pictures and encouraged to give reviews. While hotels can respond to these posts, they can’t control them like they do on many other sites.
Although Trip Advisor is great for research, you usually get more angry people than happy customers. OTA sites tend to have a more accurate portrayal of your chosen destination.
Some OTAs are also better than others. For example, Booking.com doesn’t make guests pay in advance. If there is a rate discrepancy or another available rate you qualify for, the hotel can give them a quick call and usually they’ll be able to sort it out for you. They also take a smaller commission, which means the hotel may give you a higher priority than other OTA clients. They’re also more flexible when it comes to cancelling or adjusting reservations if need be.
OTAs also offer more options to bundle your vacation. This means they’re a great place to search out vacation packages for all-inclusive resorts or a business trip where you’ll need a flight, hotel and car rental all at once. Just be sure to look around a bit before settling on a package and make sure you call around and compare prices.
Finally, OTAs are quick and painless when you’re making a last-minute reservation. Apps allow you to book with ease on your smartphone in a pinch and make deciding between a few options a breeze.
If you really want to fulfill your youthful wanderlust with longer travel, don’t be another “lazy” millennial. Instead, use your tech-savvy abilities, put your university-level research skills to work and make some calls to ensure you see as much as possible on your student budget.
