|
|
|
|
PRACTICAL TRAVEL
|
|
|
ONLINE BOOKING GUIDE - GDS vs. NETRATE
After you've narrowed your search down to the two or three hotels that interest you, how can you tell if you are getting the very best rate? The simple answer is: You can't, really, but you can sure tip the scales in your favor.
When booking online you'll often see qualifiers such as "Net Rate," "Hot Net Rate," "Promo Rate" or "Web Special." These are supposedly less expensive than "Rack Rate" or "GDS," but don't always come out that way.
First a little lesson in terminology:
GDS stands for Global Distribution System. What this means is that the GDS rate is the price that is sent to everyone, the "brochure" rate before any discount is offered. Rack Rate is essentially the same thing. Every travel agency, online booking company, tour operator and consumer can get the GDS rate. Look at it as the MSRP ("Manufacturer's Suggested Retail Price") of the lodging industry. In the same way that you hope to avoid paying MSRP for a new car, or "brochure rates" for your cruise, you are hoping to beat the GDS rate on lodging.
Net Rate (or any combination of the indications that the rates are special) means that the rates have been "negotiated" by the booking company that you are using. This applies not only to online booking agencies but to travel agencies, tour operators and even individual hotels doing their own bookings. Within the travel industry, these are also known as "wholesale rates," and even those can vary widely depending on the negotiations of the "wholesaler" with the "supplier."
Wholesale rates (Net Rates) are usually negotiated for a full year and are usually substantially lower than the rack rate (GDS Rate) that the hotel offers. If a hotel or hotel chain is doing very well, always at high occupancy levels, they might well raise the GDS but the wholesaler still has its Net Rate at the negotiated price. In that instance, the Net Rate is a true bargain, often at 50% or more off of the GDS rate that the hotel offers.
On the other hand, the hotel might offer seasonal specials or lower its GDS rate to increase bookings. In that case, the Net Rates at any one supplier might actually be higher since the rates go to the end of the year-long contract. And don't forget that Net Rates might be excluded during especially busy times; New Orleans at Mardi Gras, for example, or Times Square over New Year's Eve.
Certain hotel groups and chains -Hyatt, for instance- promise that you will not find a lower rate on any other Website than that which they offer on their own. InterContinental Group, which includes Holiday Inn and Crowne Plaza, are very agressive in marketing their own product for the Web.
Still, almost all lodging chains and individual hotels require the assistance of travel agencies and booking companies, whether online or brick-and-mortar. The larger and more powerful the agency, the better the negotiated rate. Then the agency adds its own margin of profit while trying to keep the Net Rate below the hotel's GDS.
It does take extra effort to find the rock-bottom lowest rate for the timeframe that you intend to travel, but it can be worth it. Look at the hotel's Website (if there is one,) and then at the various booking agencies available and compare. You can even telephone the hotel to see if there are any specials being offered that have not yet been published to the Web. By following these steps you can rest assured that you have found the best rate available and can have the satisfaction of having done it yourself.
[NOTE: Sleeping Around makes EVERY EFFORT to link to the lowest-priced supplier on individual hotels. The same rules apply though: We hope you'll book with us, but want you to get the best rates possible, so check around.]
SEE ALSO:
Booking Your Hotel on Sleeping Around
All photos ©Jana M. Jones
|
| |
BACK TO FRONT PAGE
|
|
Have a comment or suggestion? Want info on advertising? Are you a publicist with relevant press releases? Contact us here. |
PARIS Sleeping Around Paris - LOTS OF APARTMENTS FOR LONG OR SHORT STAYS! Location maps, district information and more.
|
LONDON Sleeping Around London... Choose your hotel or inn with descriptions and location map.
|
NEW YORKSleeping Around New York. Hotels with descriptions and location maps, broken down by neighborhood.
|
BOOK BEFORE YOU GOVIATOR, our partner for tours, daytrips and excursions, can save you time and money. Why stand in line when you can purchase your vouchers here -often at great discounts- and get started immediately?
|
POSTERS, PRINTS, ART
POSTERS and PRINTS
Buy art, perfect for gifts. Framed or unframed, 2003 calendars too!
|
|
|
