Book Cheap Hotels Online with a New Service Ensuring Best Room Rates
One of the most annoying aspects of travel is finding out someone sitting next to you on the plane, train or staying at the same hotel in a similar room to yours has paid less than you did. Possibly, because, they knew how to book cheap hotels online. It’s becoming more common as companies, such as flight operators, train companies and hotels, trying to fill spaces deploy the variable pricing model.
Variable Price Model
The variable price model is a technique where fares or hotel rooms rates may be lowered as the date for travel or a stay arrives and there is spare capacity. Alternatively, prices can rise sharply once availability is nearly sold out. The result of this is customers paying various rates for essentially the same thing depending when they may have booked.
The Frustrations of Booking Hotels
Many people find trying to book cheap hotels online very frustrating and ultimately time consuming. While booking online should make life easier, it frequently makes life harder than it should be. A plethora of choices, often tiny small print, and ads plastered over the web page, often make evaluating a suitable hotel hard work.
Contrast this to booking something like travel insurance which can be a lot simpler depending on the company website used.Book Cheap Hotels Online with a New Service Ensuring Best Room Rates Click To Tweet
Once a suitable hotel room has been found, or selection of rooms, then it’s a question of price. The dilemma?
Whether to find cheap hotels online at that moment to secure the room, or wait and see if the price goes down as check-in date draws nearer. The risk with the latter is the possibility of the room being booked elsewhere in the meantime.
A German online hotel booking company thinks they’ve got the answer.
A company founded on frustration
TripRebel, a Hamburg-based company founded by Brazilian Carlos Borges, was inspired by his frustrations at trying to book hotel accommodation for a party of ten. The companies goal is to simplify the online hotel booking experience.
The idea? Let customers relax knowing they can find cheap hotels online. And, that they’ll be getting the best deal possible on their accommodation.
How it works
Usually when booking hotels online, the customer either:
- visits the hotel’s website (or main site in the case of a hotel chain) or,
- an aggregator site to find a suitable hotel.
When a booking is made, the price displayed at that time is the price the customer pays. Though, the price could go down between the time the booking is made and when the customer checks in.
TripRebel removes this variable by continuing to check the price of your booking up to two days before you check in. If the price reduces, TripRebel refunds the difference and notifies you.
Because the customer does the original booking, TripRebel knows what their priorities are. This knowledge makes another option possible. Upgrading.
If superior hotel becomes available at a suitable price they’ll offer to cancel an existing booking and upgrade the customer – but it isn’t compulsory to take up this offer.
Any cancellation fees (if applicable) are taken into account by TripRebel so the customer won’t be out of pocket if cancelling would cost more than re-booking at a lower rate.
The company, operating out of a converted warehouse building alongside a Hamburg canal, raised some 1.6 million Euros in funding. This funding included crowdsourcing. Bookings have grown by over 90% per quarter since they moved out of the beta stage in late 2014.
Around half of TripRebel’s website traffic comes from users in Germany trying to find cheap hotels online. As a result, growth in the already saturated online travel arena could be the company’s next major challenge. Carlos Borges is optimistic saying that his company is well equipped thanks to being properly funded and executing the technology properly.
Some say TripRebels’s model could face challenges of a different type over time. Hotels may adapt to restore secure advance bookings.
Hotels rely on advance cash flow in the form of bookings. The idea that booking values could be reduced due to widespread re-booking at lower rates may be addressed before long.
Some travel industry experts think hotels may ask for booking deposits to combat having to refund people who have booked in advance and are being re-booked at lower rates.
The way ahead?
TripRebel chief Carlos Borges, understands the challenges, but, remains optimistic about the possible “push back” from the hotel industry as he helps people find cheap hotels online.
Laura Reeve, the author of Book Cheap Hotels Online, is the Marketing Executive at Avanti Travel Insurance, who specialise in travel insurance for those with pre-existing medical conditions, and are one of very few that have no upper age limit on their policies.
Did you enjoy this Book Cheap Hotels Online article? Want more travel stories and inspiration delivered straight to your inbox? Get an email when I publish my next one!
Just Sign Up Below, Or in that Big Box to the right, and Stay Up-to-Date!