Frequently I state that the commission an online travel agency (OTA) like Expedia and Travelocity takes in a hotel booking is about 20 to 25% of the room rate charged to the consumer. Hotels pay the OTA for their room bookings. The consumer rarely gets a cheaper room through the OTA compared to the hotel chain’s website.

This is the reason why most chain hotels do not offer loyalty program points or promotion credit for bookings through OTAs. And this is why the hotel chain can afford to run high-value points bonus promotions to drive bookings through the chain’s website. The consumer receives hotel loyalty program benefits rather than the OTA taking profits from the hotel for hotel rooms. OTAs generally do not give the loyalty program member the rebate value available through direct bookings with the hotel chain.

An article from HotelNewsNow.com states the OTA commission has gotten smaller with brand hotels paying about 15% of room rate and independent hotels about 20%. Online travel agencies do not have the bargaining power in 2012 as the global hotel industry has picked up and room rates have climbed higher.

Another potential change for 2013 is rate parity between OTAs and hotel brand websites may be ending due to “price-fixing” lawsuits in Europe.

All the hotel chains offer Best Rate Guarantees and so do the online travel agencies. The fixed hotel rates make Best Rate Guarantee claims a valuable discount for my travels since most chains discount a valid rate discrepancy by taking 10% to 25% off the lower rate.

What will be the effect on hotel loyalty programs if online travel agencies can undercut the hotel chain’s own room rates?

Seems to me like the hotel loyalty promotions would have to get better to keep consumers booking directly with the hotel chain rather than booking lower rates through online travel agencies.

Elite tier status in half the stays from November 5 through December 31, 2012 is the targeted email Hilton HHonors promotion some members received today. Registration is required.

The message I received when I tried to register:

You are not able to register for this promotion online. Please call the Hilton Reservations and Customer Care nearest you.

I did not expect the offer to work for me.

The promotion terms state:

Double Bonus Stay Credit – Terms & Conditions

This exclusive offer is open only to the Hilton HHonors™ member who received the email from Hilton HHonors™ announcing this promotion.

This offer applies only to double elite stays and does not apply to elite nights or elite base points.

HHonors Gold elite at 16 stays or HHonors Diamond at 25 stays is much closer for the targeted HHonors members.

Follow this FlyerTalk thread for discussion on the Hilton HHonors Double Stays offer.

Double Bonus Stay Credit – Terms & Conditions

This exclusive offer is open only to the Hilton HHonors™ member who received the email from Hilton HHonors™ announcing this promotion. Offer valid for eligible stays completed between November 5 and December 31, 2012 (“Promotion Period”). HHonors members must first register for the offer prior to the check-out of their stay within the Promotion Period. “Count double toward the number of stays” means each completed stay will count as two stays. This offer applies only to stays and will not double the HHonors member’s Base Points or nights during each stay. A “stay” is defined as the total number of consecutive nights spent at the same hotel, regardless of whether the guest checks out and checks back in again.

If an elite status upgrade is achieved or elite status is maintained through this offer, the status will be valid until March 31, 2014. An elite status upgrade means that the HHonors member qualifies to earn a higher elite status within a calendar year for the subsequent year. Maintaining elite status means that the HHonors Member qualifies to preserve that elite status within a calendar year for the subsequent year. Members must re-qualify for elite status each year.

Hilton HHonors™ membership, earning of Points & Miles™ and redemption of points are subject to HHonors Terms and Conditions.

Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests. You can follow Loyalty Traveler on Twitter and Facebook and RSS feed.

This is week 4, the last week of Le Club Accorhotels Facebook Discovery Game to earn free 500 points each week for pinning 10 Accor brand hotels on a world map.

China tripped me up this week since I pinned Shanghai before seeing Guanddong farther south.

You earn 50 Accor points for every correct pin. Pin all ten hotels correctly and you receive 500 points and an entry into a 15,000 points sweepstakes.

Members could earn 2,000 points with this game over the four weeks. I earned 2,000 free Accor points.

2,000 Le Club Accorhotels points can be redeemed for a 40 EUR or $60 USD hotel credit certificate for Accor Hotels worldwide.

Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests. You can follow Loyalty Traveler on Twitter and Facebook and RSS feed.

American Airlines has a double elite miles (EQM) promotion for all members Nov 1-Dec 31, 2012 that also includes double redeemable miles on flights from November 16 to November 26 for all AAdvantage members.

AAdvantage elite members earn double redeemable miles (RDM) and double elite miles for all American Airlines operated flights during November and December. The two double miles promotions for Thanksgiving double redeemable miles Nov 16-26 and elite member double redeemable miles for all flights in November and December will not be combined for AAdvantage elite members.

All AAdvantage members must register for Double Miles Thank You Promotion to earn these bonuses.

“Mileage Runner Rehab is for Quitters”

It has been five years since I planned mileage runs. I used to be an expert.

This past weekend was frequent flyer university for me as I refreshed my skills for finding good flight deals. This post guides readers through some of the basic steps and pitfalls for planning mileage runs based on my experiences.  Read More…