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Why do airlines give miles for third-party booking but hotel groups not?

Why do airlines give miles for third-party booking but hotel groups not?

Old Mar 16, 17, 7:27 pm
  #1  
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Why do airlines give miles for third-party booking but hotel groups not?

unlike hotels loyalty program which no longer give points, nights , stays or even elite benefit for third party booking, most airlines would give this kind of booking the same points as we book from the official channel.

but both hotels and airlines have to give a great amount of commission ot OTA, what make this different? just a little confused.

thanks a lot.
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Old Mar 16, 17, 7:34 pm
  #2  
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Airlines to not give away ff miles. They sell them hard cash to there own airline, other airlines, credit card companies, rental car companies and other retailers. Frequent flyer loyalty programs are increasingly a separate business and/or profit center. A better business than flying aircraft.

OTA's will not want to pay the $ for the miles.
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Old Mar 16, 17, 7:43 pm
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most hotels are franchises

airlines own their business
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Old Mar 17, 17, 12:09 am
  #4  
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I believe that OTAs charge higher commissions to hotels than airlines. The hotel industry is very fragmented, with some large chains and then lots of independent hotels as well. They need the OTAs for marketing and distribution a lot more than the airlines, which are an oligopoly, do. Due to the higher commissions, hotels have more incentive to discourage third-party bookings than airlines do.

However, some airlines do this as well. Jetblue gives you more points if you book directly with them, and less if you go through an agent.
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Old Mar 17, 17, 1:21 am
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Originally Posted by cbn42 View Post
I believe that OTAs charge higher commissions to hotels than airlines.
We have a winner!

Hotels pay out up to 30% commissions for OTA bookings. Airlines pay far less that that for most TAs/OTAs. It is all about the money.

Originally Posted by Mwenenzi View Post
OTA's will not want to pay the $ for the miles.
This is not how it works at all.
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Old Mar 17, 17, 11:48 am
  #6  
mia
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Originally Posted by sbm12 View Post

Hotels pay out up to 30% commissions for OTA bookings.
Apparently they also agree not to undercut the prices advertised by Expedia, Priceline et.al.. Linking status and rewards to direct booking is a way that chains can discourage OTA bookings, while complying with the terms of their contracts.
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