Trivago in trouble [fined $44.7m for misleading advertising]

[Lynda2475]

Until last week, I have always got a better deal booking directly with the hotel or their rewards program than aggregators, but I always double check. For first time ever last week it was cheaper to book via Qantas hotels than it was via the rewards program or hotels.com, expedia etc - so Qantas got my booking - and I'll get QFF instead of hotel points.

Also some sites including TraVaGo dont tell you the true cost in their comaprison, as taxes and resort fees added later on. Althought hotels.com is great at giving full cost during the search.

 

[DC3]

Until last week, I have always got a better deal booking directly with the hotel or their rewards program ...

And if you have status with the hotel program, by using a third party you usually forgo the included status benefits, which may include breakfast, lounge access, room upgrade, wi-fi, stays/nights toward status renewal, often for no cost benefit. Unless the hotel is particularly generous in granting any of these.

 

[p--and--t]

One hotel owner told me that they are damned if they do and damned if they don't sign up with these online booking agencies.

So many people are gullible and believe the advertising and/or too lazy to do anything but a google search and thus a significant and increasing % of all reservations come through the online agencies - therefore smaller businesses can no longer survive without dealing with the agencies. On the flip side the agencies sometimes take up to 30% of the tariff (depending on the deal struck) for themselves and the hotel doesn't get paid until much later (cash flow!) and all the risk is on the hotel.

Compounding that, some of the contracts forbid the hotel from quoting a rate lower than the OTA (and have penalties attached). That's the reason why sometimes when you ring a hotel they will only offer you a higher rate than the OTA - they don't want to be caught out contravening their contract by OTA spies. The only way you may get a lower rate at these hotels is by a "walk-in" request.

 

[DC3]

One hotel owner told me that they are damned if they do and damned if they don't sign up with these online booking agencies.

So many people are gullible and believe the advertising and/or too lazy ....

Agree with that. Gullible/lazy, and believe that it’s going to be a better deal.

 

[leadman]

Agree with that. Gullible/lazy, and believe that it’s going to be a better deal.

All spin by a young pretty Millennial, all smiles, interrupting conversations, overhearing prices of other clients and rubbing it in how she got a better deal. Who wouldn't believe that!

 

[Pushka]

All spin by a young pretty Millennial, all smiles, interrupting conversations, overhearing prices of other clients and rubbing it in how she got a better deal. Who wouldn't believe that!

Who comes across as a know all. Rude.

 

[dajop]

Compounding that, some of the contracts forbid the hotel from quoting a rate lower than the OTA (and have penalties attached). That's the reason why sometimes when you ring a hotel they will only offer you a higher rate than the OTA - they don't want to be caught out contravening their contract by OTA spies. The only way you may get a lower rate at these hotels is by a "walk-in" request.

Aaah don't we all love a bit of unchecked market power?

 

[coriander]

I use Trivago to obtain a list of hotels and indicative prices: I've never assumed prices or first screenful as accurate. Then I check the hotel's website - almost always cheaper - then check QF hotels where the QF price is usually $200 different from the direct hotel price - in either direction!

For example, we just booked a Hilton Hotel in EU - first took the Hilton Honours Flex tariff. €2130. Checked QF - their price equivalent to €1900. Hmm. Went back to the hotel's website 24 hours later to check/cancel: tariff is now Hilton Honours Discount Flex and is €1520 for same room (King Executive High Floor Sea View). Updated our reservation to reflect lowered tariff. Like with rental cars we check the tariff every week as the prices fluctuate wildly (had similar €400 tariff alterations in both Barcelona and Oporto in 2018).

As per Lynda's message upthread re QF, I think QF is having a sale at the moment because we secured a great deal on another hotel at the moment, much cheaper (by about €200 equivalent than direct and Expedia and co).

 

[coriander]

This afternoon Rod Sims on 3LO was telling Raf Epstein that their research showed that 2/3rds of bookings resulted from clicking on the first link for a given hotel. Fine can be up to $1.1million per breach because offences predate 2018:howeverfines nowadays can be up to $10 million per breach or 10% of yearly turnover, whichever is greater.

 

[Major]

All spin by a young pretty Millennial, all smiles, interrupting conversations, overhearing prices of other clients and rubbing it in how she got a better deal. Who wouldn't believe that!

I am absolutely sick of that ad. It turns me right off

 

[Citoyen]

If I'm not mistaken, when the current advertising first screened it had higher price points.
Now - who wouldn't want those prices for a room in a large city hotel? So much of their advertising - even post Competition and Consumer Act litigation is misleading.

Like many here, I love my loyalty points and upgrades so Hotel Loyalty sites it is. Member discounts help, but lounges, breakfasts are usually available either way.
Having said all that - the opaque fares and rates that result from some of the bundles that aggregators and offer up seem so good.

Ultimately you have to be honest with yourself about your travel patterns and likely outcomes. Not long ago whilst doing a comparison on Expedia, I saw an awesome international bundle deal - unbelievably cheap, irresistible. I took it - only to learn a few days later that I had to make change because of something unrelated that came up in my diary. It was cheaper to double book and abandon some of my bundled trip than to alter the bundle!!!

Most expensive great deal I've ever had.

 

[Lynda2475]

Yeah Qantas hotels deal i got had all the same inclusions and room type for $80 cheaper which will cover my uber to/from airport. It's true i am forgoing loyalty nights but since work travel is greatly reduced this year i dont think id it end up staying enough nights to get any decent status anyway.

Depemding on trip purpose (business or leisure) and city, inclusions like breaky hold different value for me. On any given trip i need to weigh up whether im likely to use those inclusions.

 

[JohnM]

Excellent. Does that ad they are frantically pumping annoy anyone else? Honestly I want to do awful things to both of the main leads.

I almost never watch TV, certainly absolutely never, ever watch commercial TV, so I would be oblivious to the garbage ads except that sometimes I've seen Trivago pop up on one of the TVs at my gym. Just those glimpses were enough to realise they were likely to be dodgy.

 

[Pushka]

I almost never watch TV, certainly absolutely never, ever watch commercial TV, so I would be oblivious to the garbage ads except that sometimes I've seen Trivago pop up on one of the TVs at my gym. Just those glimpses were enough to realise they were likely to be dodgy.

I took that from Foxtel. And again as I click Save, Bingo. On Foxtel again. I think that’s five times today.

 

[drron]

I have a look at consolidators as may be able to get a BRG or similiar though usually told the rates aren't similar.But the price saving in no way makes up for lack of lounge access,possible upgrade and points.

 

[get me outta here]

THAT Trivago ad is still showing on TV.

 

[GSP]

As with others have said, I think adds look dodgy, a bit condescending and unrealistic.

But per my earlier comment, I can put all that behind me and really enjoy the adds. On Mute is fine too.

 

[OATEK]

Yeah Qantas hotels deal i got had all the same inclusions and room type for $80 cheaper which will cover my uber to/from airport. It's true i am forgoing loyalty nights but since work travel is greatly reduced this year i dont think id it end up staying enough nights to get any decent status anyway.

Depemding on trip purpose (business or leisure) and city, inclusions like breaky hold different value for me. On any given trip i need to weigh up whether im likely to use those inclusions.

I had a family member working at Hotels dot com who reckoned they provided the engine for QANTAS Hotels, and Hotels dot com is in turn owned by Expedia.

Mrsoatek was very keen to stay at a particular Hotel in rural France, and we couldn't get a reservation through their online site. But Booking dot com had a room to book, which we took, and it all worked out ok.

 

[SOPOOR]

very relevant to Trivago's bad behaviour, but my japanese friend showed me their ad

pretty blonde speaking perfect japanaese apparently

 

[burmans]

Who comes across as a know all. Rude.

Ah come on guys, it's marketing. In this day and age it's hard to find any marketing that's not bullshit so exercise your democratic right to ignore it.