More accurately, hotels lose between 20% - 38% on third party bookings, plus a transaction fee of $5-$8 per booking. That's why most brands don't offer loyalty club points on those third party bookings.

Most hotels offer the same rates on all channels, so let's assume a rate of $100, and it's available on brand.com, Expedia, Hotels.com, Orbitz, Travelocity, etc. Most likely you'll see, and pay, the same $100 no matter where you book. But that's where the similarity ends.

If you book on brand.com and pay $100, the hotel gets $100. But if you book on any of the third party sites and pay $100, the hotel only gets somewhere between $62-$80 depending on the agreement they have with the third party, plus the hotel pays a $7.00 booking fee on top of that. So, a net of $55-$73 on a $100 booking. It's easy to see why they wouldn't want to lose even more by paying to award points on top of those low net rates.

Also, if you book through a third party, that site "owns" your booking - the hotel does not. Per contract, the hotel can't change your reservation if you call them - you HAVE to make changes through the third party you booked with. People slam hotels constantly on this issue in reviews, but it's beyond the hotel's control. They're not trying to be unhelpful - their hands are tied.

It's always better for the hotel AND the guest to book directly with the brand, either on brand.com or calling the hotel directly. The only people it's NOT better for is the third party sites.