Buzz
Finding travel deals has never been easier, and often the lowest prices are available directly from the hotel or airline. But this leads to an important question: do third-party travel websites still hold any real value? Expedia has recently upgraded their points program, allowing customers to earn travel rewards through their platform. Although not the first online travel agency (OTA) to introduce such a feature, it's worth comparing how they measure up.
The Downsides of Using Third-Party Booking Sites
Aside from points programs, booking through a site like Expedia, Travelocity, or Orbitz offers little advantage. In the past, travelers used these platforms because the prices appeared significantly lower. However, today, it's possible to find similar or even better deals by booking directly with the airline or hotel.
I compared a round-trip flight on Google Flights and Travelocity, for instance, and found the price to be identical when booking directly through United. The same results appeared when I checked Expedia and Orbitz. While these sites suggest that bundling a flight and hotel package will yield savings, most hotels offer a 'Best Rate Guarantee,' meaning if you find a cheaper price elsewhere, a simple call to the hotel will result in a price match.
In addition, booking directly with the hotel often means receiving superior customer service. I remember once checking into a hotel I had booked through a travel app, and the hotel manager jokingly said, 'You booked on HotelTonight? We’re going to give you the worst room.' I asked if hotels really did that, and he replied, 'We prefer direct bookings. Some places offer better service that way.' Here's an insider's confession shared on Consumerist:
My hotel doesn’t intentionally put guests who book through third-party sites into our smallest rooms, but when occupancy is high, that’s often what happens. You might not always get the best room when booking directly, but at least you won’t be automatically assigned to the less desirable ones during check-in.
When you book directly with the hotel, you're also more likely to receive assistance if anything goes wrong. Hotel manager Jennifer Goodwin explains why this is the case:
In the rare event that something goes wrong with your stay, the hotel can address the issue more quickly and efficiently. For example, if I wanted to offer you a 20% discount and you booked through a third party, we’d have to go through them and their system, making the process much more complicated. It's far simpler to handle everything directly with us.
This also applies to flights. If your flight is delayed or canceled, resolving the issue will be more challenging if your ticket was purchased through a third-party service. Additionally, should you need to make changes to your reservation, many OTAs will charge you a fee *on top of* the airline’s own change fee.
What Do Third-Party Rewards Look Like?
It seems that customers are already aware of the downsides, as fewer people are booking travel through third-party sites. In response, many of these platforms have introduced rewards programs to lure back those customers.
However, it’s important to note that many hotels and hotel-branded credit cards have their own rewards systems, and you can only accumulate points if you book directly through the hotel. So, if you're looking to take advantage of third-party rewards, you'll need to choose between their program or the hotel's. Let’s take a closer look at a few third-party rewards programs to see if they offer real value.
Expedia+ Rewards
Expedia’s rewards program is divided into three tiers: blue, silver, and gold. While silver and gold levels provide additional perks, such as a complimentary drink at select hotels, here’s how the basic points system works across all three levels:
1 point for every $1 spent on flight + car bundles
1 point for every $5 spent on airlines (you can still use your frequent flyer miles)
2 points for every $1 spent on hotels, hotel packages, car rentals, activities, and cruises
If you book at one of their VIP+ access hotels, you’ll also earn bonus points. It all sounds promising, but the value of points can be confusing. The real question is: how many points do you need for free travel? That’s where things get tricky.
Expedia has separate redemption processes for flights and hotels. For flights, you’ll need enough points to cover the full price of the ticket, and according to The Points Guy, you’ll get about 1 cent per point. So, for a $250 flight, you'd need 25,000 points.
For hotels, however, you can begin redeeming at just 3,500 points. Here's a breakdown according to travel expert and personal finance writer Holly Johnson:
3,500 points: $25 coupon
7,000 points: $50 discount
14,000 points: $100 discount
21,000 points: $150 discount
Even with thousands of points, you’re still only looking at a modest $25 discount. It’s difficult to assign a clear monetary value to Expedia’s points, as they vary depending on the travel type, but based on the 2 points per dollar spent on hotels, that’s roughly $0.01 per dollar spent—less for flights.
Although this value is low, it’s on par with most hotel rewards programs, which are valued anywhere between 0.4 cents (Club Carlson and Hilton Honors) and 2.2 cents per point (Starwood Preferred Guest). It can be a bit confusing, but the key takeaway is that it will take quite some time to earn a free flight. If you're using Expedia’s program, it’s probably wiser to redeem for hotels.
Here’s the thing: booking through the site might actually cost you more. I checked a three-night stay at a hotel in NYC. The total cost when booked directly with the hotel was $788, while through Expedia it was $1,019. Based on my findings, unless you're booking at one of Expedia’s VIP hotels, you’ll often pay more per night, which pretty much cancels out the value of both earning and redeeming rewards.
Orbitz 'Orbucks'
When you book through the Orbitz rewards program, you earn 'Orbucks.' Here’s the breakdown of what you earn:
5% back on hotels booked via their mobile app
3% back on hotels booked through a computer
1% back on flights
Let’s say you're planning a trip to Austin and book everything on Orbitz. If your flight costs $500, you’ll earn 5 Orbucks. If your hotel costs $750 for the week, and you booked through the app, you’ll earn 37.5 Orbucks. This gives you a total of 42 Orbucks for a $1,250 trip. Fortunately, Orbitz makes the redemption process simple: one Orbuck equals $1. For hotels, that translates to five cents for every dollar spent, which is a pretty solid deal compared to other hotel loyalty programs.
Similar to Expedia, hotel prices on Orbitz can also be higher, unless it’s one of their partnered hotels offering a daily deal. Orbucks provide a decent value, but if the hotel costs more in the first place, it’s not really worth it. Essentially, you're paying more upfront just to get a little cash back, which doesn’t make much sense.
Hotels.com’s Welcome Rewards
Luckily, Hotels.com’s rewards program is a bit simpler. For every 10 nights you book through them, you earn a free night. Think of it like a punch card you'd get at a local coffee shop. The value of your free night is equal to the average nightly rate you paid for those 10 qualifying nights.
You’re still responsible for taxes, fees, and any other charges that arise. If the hotel you want to book is more expensive than your average rate, you’ll just pay the difference.
Being a member of their rewards program also gives you access to 'Secret Prices.' However, this is somewhat of a vague benefit. Here's how Hotels.com describes it:
Even lower than our promotional rates, Secret Prices offer discounts stacked on top of existing hotel deals or, when no deal is available, on standard prices. The discount you receive depends on factors like your dates, destination, and the hotel you choose.
This doesn’t give you much detail, but in general, Hotels.com’s rates tend to be just as high as any other OTA. Unless it’s one of their featured hotels, you’ll likely find a better price if you book directly with the hotel.
The conclusion? I probably won’t be signing up for these anytime soon. While some perks like free drinks or potential upgrades for gold members sound appealing, it takes too much money or time to see any real discounts. And, let’s not forget the service drawbacks—are these perks worth it if they come with worse service at the airline or hotel? If you're ready to invest the time and research, or if you’re already using these sites, the rewards might be worth it.
Expedia+ and Orbitz Rewards might be more beneficial for flight bookings. You can still earn both rewards and frequent flyer miles, so why not get double the benefits? For hotels, though, it’s likely not worth it unless you’re loyal to ‘VIP’ hotels that already have deals with these sites. In that case, Hotels.com seems to offer the best deal. To sum up, these programs are worth checking out if you’re always hunting for deals, but for the rest of us, there are quicker, more profitable ways to save on travel.
