Interesting article: http://nomenklatura.hubpages.com/hub...com-or-Hotwire

Also interesting additions by (worth searching by user name for each comments):

hotelGMtenyears

Mr potato 11

August Seven Inn

madmaf

Many confronting views! I hope the enlightened readership of FT have the definitive word.

My addition #1:

I like madmaf's approach, the question here is if you book directly with the hotel would they be kind enough to match Hotel.com's effective 10% discount or an upgrade worth the same? I am not necessarily that frugal, the upgrade or nicer care might worth it better than the discount.

The other thing here when you negotiated a special deal with a hotel for booking directly with them, how will they give you your unique price through their online booking engine? One option is you book by phone which has its drawbacks if you do not understand each other's language crystal clear (practically, limited English on one side) then it might be a pain to book on the phone.

My addition #2:

The same question applies for high end travel agents like Virtuoso. If we conclude on one hand it is better to book directly with the hotel than through a cheap site, then isn't it also better - for the hotel? for you? - to book directly with the hotel rather than a high end agent, at least it leaves more profit with the hotel as the high end agent gives you upgrades and perks for the same cost.

All in all, complicated issue with many variables!