Originally Posted by
OUTraveling
Money. They get the companies money that is has a 12% charge applied to it eating into their profit, such they barely make any money for OTA bookings. Now you want them to throw out the red carpet you with room upgrades, lounge access, and breakfast...all of which cuts into the hotels bottom line.
This is the answer to the question of why hotels aren't eager to pay out commissions and elite benefits to members of the frequent travel program.
I'm one of the few people here that have worked in hotels. Without getting into proprietary information, I can say that the cost of paying a travel agent commission plus the cost of providing elite benefits (points, breakfast, upgraded in-room amenities) makes a HUGE dent in the profit margin at a full-service hotel.