Bookings

I was wondering why travel agent websites like expedia.com, booking.com or hotel.com are able to offer lower prices for hotel rooms and still get paid a commission for any sales they make..

I actually called up a hotel that i was planning to book a room from and asked them, apparently they negotiate contracts for this arrangements, which made me wonder why any hotel would want to enter such an agreement in the first place..

Then I realize, hotel rooms are just like any commodity, the agents buy the rooms in bulk for lower prices and the hotel removes the uncertainty of not knowing exactly what future bookings will be like..

In order words: economies of scale~

But then this leads me to another thought, for service industry such as hotel, wouldn't removing this risk also remove any incentive to actually provide good service? I mean hotels are even giving out commissions to encourage agents to sell rooms..

I guess the the challenge would be on maintaining the motivation to keep quality up..

I think I'm going to post shorter posts more frequently.. annual blog post kinda defeats the purpose of having a blog.. Anyways there's an app to blog stuff so i guess i can type up a post more conveniently..