How Much It Pays to Book Direct Depends on the Hotel Brand

While all the major hotel chains are trying to drive direct bookings by offering discounted loyalty rates, there are differences in their strategies and benefits to guests. With Choice Hotels beginning to offer discounted member rates on July 20, it joined its peers Hilton, Marriott, Hyatt, Wyndham, InterContinental Hotels Group, and Wyndham, among others, in launching special room rates just for loyalty members. The chains believe the logic behind these rates is theoretically sound. By offering a cheaper rate to guests who are a part of their loyalty programs and who choose to book direct instead of booking with an online travel agency like Expedia or Booking.com, hotels lower their distribution costs and could strengthen their loyalty relationships with customers. And if a customer isn’t yet a member, these cheaper rates should incentivize them to join the loyalty program. There are several issues, however: If no one knows about the rates, how helpful will they be for a h