OTAs like Expedia, Kayak, and Chase Travel Portals can be convenient and rewarding, but they also come with drawbacks. Here’s what you need to know before booking your next trip.
Pros of Booking Through OTAs
- Potential Cost Savings
- OTAs often offer lower prices for flights, hotels, and car rentals to compete for your business.
-
Discounted fares or packages may not be found elsewhere.
-
Earn Extra Rewards
- OTAs accessed via shopping portals allow you to earn cash-back or bonus points.
-
Some credit cards, like the Chase Sapphire Reserve® and Capital One Venture X Rewards Credit Card, provide raised rewards rates when booking through their travel portals (e.g., 10 points/miles per $1 spent on hotels).
-
Enhanced Redemption Value
-
Credit card travel portals sometimes boost the value of your points. For example:
- Chase Sapphire Preferred®: Points are worth 1.25 cents each when redeemed through the portal.
-
Streamlined Price
- OTAs make it easy to compare prices across multiple providers in one place.
Cons of Booking Through OTAs
- Limited Flexibility for Changes
- Changes or cancellations must typically go through the OTA rather than the airline or hotel.
-
This process can lead to delays, limited options, or extra fees.
-
Loss of Elite Status Benefits
-
Hotel chains often exclude OTA bookings from:
- Elite night credits (needed for earning or maintaining status).
- Elite perks like room upgrades, free breakfast, or complimentary Wi-Fi.
-
Higher Prices in Some Cases
-
Many hotel chains offer best price guarantees when booking directly. Examples:
- Hilton: Matches the rate and discounts an additional 25%.
- These guarantees often don’t apply to OTA bookings.
-
Opaque Fare Types
- OTA listings may not always clarify restrictions (e.g., basic economy vs. standard economy fares).
When to Use OTAs
- Maximizing Credit Card Rewards: Book through card-specific portals like Chase or Capital One to maximize points/miles.
- Cost Comparisons: Use OTAs to shop around for deals.
- Simple Itineraries: Perfect for straightforward bookings without the need for later adjustments.
When to Book Directly
- Elite Status Matters: Book direct to maintain or enjoy elite benefits like upgrades and free amenities.
- Flexibility Needed: Direct bookings often allow easier cancellations or changes.
- Price Matching: Take advantage of best price guarantees offered by hotels.
Summing it up
OTAs are great for savings and rewards, especially for travelers without loyalty status. However, if elite perks or flexibility are priorities, direct booking may be a better choice. Choose based on your travel goals and preferences!
Next: Read 2500+ consumer guides to shopping, electronics, appliances, home services, cars, money and more.
