How Third-Party Bookings Prevent You from Earning Hotel Rewards

Loyalty programs in hotels offer numerous benefits and privileges such as free accommodation, upgrades, and other bonuses. Some travelers are quite shocked to learn that they do not accumulate hotel points when making a reservation through an OTA such as Expedia or Booking.com. This can be a problem and inconvenient, particularly for the people who want to earn points for free nights and membership status.

It is imperative that one understands the reasons behind this in order to get the most out of the rewards. There are several reasons as to why hotels have some rules and regulations that bar OTA bookings from making points; these include: This article provides an understanding of hotels’ association with OTAs, the reasons why points are not earned, and how travelers can still optimize hotel loyalty.

The Relationship Between Hotels and Online Travel Agencies

How OTAs Operate

They have adopted the role of a middleman between the traveler and the hotel since it gives travelers a platform to compare the prices, read the reviews, and make a booking. Customers resort to booking with OTAs since they offer a range of hotels to choose from in a single site.

Thus, although using an OTA makes booking easier, customers get fewer advantages than when booking directly from a hotel. People believe they will accrue points as they usually do when they make direct bookings through OTAs, but this is not the case. This is why points are often excluded from the third-party reservations. On this account, it is crucial to differentiate between two types of bookings.

Commission Structures and Hotel Revenues

Hotels had to offer substantially high commissions, which are usually in the range of 10%-25% of the sales. These costs decrease the revenue of the hotel companies and thereby minimize their profitability.

Loyalty programs are programs that are established with a view of creating a reward system for guests who book directly; hence, OTAs cannot be allowed. They only like to offer incentives to direct customers because they are more lucrative compared to corporate customers. Moreover, a booking made through OTA may not enjoy the same privileges, such as room upgrades, flexible cancellation policies, or any special requests.

Hotels’ Incentives for Direct Bookings

This is because booking directly enables customers to access privileges such as bonus points, free breakfast, or even free cancellations. Some of the chains that have such rates are Hyatt, Marriott, and Hilton, which often use member-only rates that are not offered through OTAs.

Another way through which hotels try to encourage the use of direct channels is through promotion offers whereby guests get additional points to add to their loyalty point tally. These will assist the hotels cut out the OTA middlemen and still make sure that the guests reap the benefits of the loyalty programs offered. Knowledge of these policies assists the travelers in making the right decisions when choosing where to lay their heads.

Why Hotel Points Are Not Awarded for OTA Bookings

Loyalty Program Terms and Conditions

It is important to remember that each hotel chain is different, and most of them have stated that points cannot be earned from booking through an OTA. It is indicated in the terms and conditions of the World of Hyatt, Hilton Honors, and Marriott Bonvoy that points can only be earned from eligible rates that guests book directly with the hotel. In this way, hotels retain some degree of influence over OTAs' booking points and guarantee that the rewards go to the direct consumers. Indeed, OTA bookings may still offer cheaper rates, but the traveler has to weigh the potential benefits versus the loss of points and elite status.

Revenue Allocation and Cost Considerations

Loyalty programs are more of a revenue-based system whereby the hotels set aside some of their revenues to support the program. Since OTA bookings have commissions, hotels do not make enough gross revenue from such bookings to justify issuing points. Also, most of OTA bookings are wholesale or non-qualifying rates which do not allow the customer to earn loyalty points. This policy also helps to reduce the problem of accumulating points on discount or package deals, which are also a way of achieving direct bookings.

Impact on Elite Status and Benefits

Not only do they miss their points but also their qualification for an elite status when they book through OTAs. It would affect the earning of status since points are accumulated, and thus, missing them might slow down attaining higher tiers such as Hilton Honors or Marriott Bonvoy. Moreover, sometimes, the OTA reservations do not attract elite status, where one does not get a free upgrade, free breakfast, or late check-out. Some of these bonuses are exclusive to the direct bookings, which means that guests who booked via OTAs rarely get to benefit from them. Knowing these disadvantages will assist a traveler in deciding whether to book directly with a hotel or through an OTA.

Strategies to Ensure Earning Hotel Points

The simplest way of accumulating hotel points is by making a direct reservation via the hotel’s website or the application. Loyalty members from most of the major chains are privileged to get discounts, bonus points, and even more when they book directly on the platforms. When they book directly, the traveler can be able to get more flexible cancellation policies and may also be able to get more discounted rates. Many of the hotels have best rate guarantees to guarantee that clients will be given the best possible prices. These are some of the benefits of direct bookings that make it the best option for hotel guests who want to benefit from the loyalty programs.

Conclusion

Loyalty programs in hotels offer an opportunity to users who book directly, and reservations through OTAs do not entitle users to earn points or get membership status. This is because commission costs are high, and hotels have contractual restrictions in addition to their preference for direct bookings. Knowledge of such rules is useful to travelers when they decide where to go to book. Loyal customers should always use the direct links to the hotel website, while the bargain hunters could consider using the OTAs. These strategies will help a person to get the most out of his or her booking and have a good stay in the hotel.