Several people in the world do not have a full grasp on how website can offer cheap hotel rates to their clients. The rates usually are even cheaper than the hotel is offering directly. Are these websites safe to use, and will you actually save money?

Because I own one of these sites that sell your rooms at cheap hotel rates, I will tell you the sites are real. There are many things that go into the fact that the rates are cheaper than the hotel, but I will give you a few reasons why.

The main reason we are able to offer such cheap hotel rates is because we buy in bulk. We promise to fill a certain number of rooms every night to a hotel. We do hae some special methods to predict what kind of rooms we will need. We look at things like special events, when people travel, and other factors to decide how many rooms our site will book.

We then enter into a contract with the hotel and have them reserve our rooms. For assuring them that we are going to fill them they offer us a large discount off of the rooms. This discount brings us to what is known as the wholesale rate, a rate given to suppliers of lodging not available to the public. This rate is even lower than the cheap hotel rates we display on our site.

In turn we add a small markup to our hotel rates which is our cheap hotel rate and sell it to you less than you could get it directly from the hotel. These cheap hotel rates are only available, however, through prepayment. That is because we have purchased these rooms at these rates up front from the hotel.

There really isn’t a catch to these type of websites. You do have to prepay, but more and more hotels are charging a deposit to guarantee the room anyway. You can save a lot of cash if you buy in advance with websites like mine. Plus almost any site offering cheap hotel rates will match a competitors price if you find it cheaper. This is because each of these sites is working towards a market share, and loyal customer base.