To get the best rates, use all the resources at your fingertips

The debate over getting the best hotel rate seems to center these days on three words that form one question:

Telephone or Internet? Some bargain hunters swear that the best deals are found on the Web, but others insist you must pick up the phone and call the reservations desk of the hotel.

The July issue of Consumer Reports suggests that, in a head-to-head comparison, about half the time consumers can net an average $83-per-night savings by contacting the hotel directly versus booking on a third-party site. In a July column, travel guru Arthur Frommer, quoting a retired hotel executive, suggested that the best way to get the best deal on a room was to shop the big three online agencies -- Expedia, Orbitz and Travelocity -- then call the hotel directly, not a toll-free central reservations line.

Both of these sources are reliable, strong consumer advocates. But based on my experience and some comparisons, I might suggest another approach. Here’s why:

The Consumer Reports story looked at 20 hotels in five cities, for a total of 100. Orbitz alone lists about 65,000 hotels.

“Our aim was not to perform an exhaustive sampling of the travel websites, but rather to put ourselves in the traveler’s stead,” said David Heim, deputy editor of special sections for Consumer Reports.

A consumer, of course, isn’t going to look at every hotel in every destination, but in keeping the study simple, Consumer Reports may not be giving websites their due.

The study “ends up simplifying what is a very complicated issue,” said Jared Blank, an industry analyst for Online Travel Review.

It is complicated indeed. Hotels negotiate special merchant rates with some -- but not all -- websites, which give those sites better rates than you might find elsewhere. For some hotels, however, sites simply list the retail or brochure price of a room.

Of the 65,000 hotels that Orbitz lists, for example, only 16,500 are merchant rates. Those rates, which go by various names at various websites -- Orbitz Savers, Expedia Special Rate hotels or GoodBuy rates at Travelocity -- are where consumers should look for the best deals.

Travelers “want choice and value and convenience,” said Kurt Weinsheimer, vice president of hotels for Orbitz.

“Consumers are busy, and if they can find all the options they need on a site like Orbitz, they want to do it.”

Consumer studies suggest he is correct. More than half of all hotels booked online are booked by a third-party agency, such as Orbitz, according to a study by PhoCusWright, a Connecticut travel research firm. “Third-party sites offer compelling deals and shopping options and will continue to represent the greater share of hotel Internet bookings,” the study said.

Still, for those motivated by finding the absolutely lowest rate, the more websites you shop, the greater your chance of finding the best deal online because of the wider array of merchant deals. So finding that best deal still will take effort.

“There’s no one way to get the cheapest rate on a hotel,” Blank said. “It really depends on the amount of time you’re willing to put in searching.”

Here’s one good way to find a low rate for a hotel room: Shop several sites on the Web. When you find a hotel and a rate you like, check its website for lower rates. If you have time and are so inclined, it is sometimes possible to get lower rates by calling the hotel directly. The bottom line for your bottom line: Don’t limit your approach. Use what works best. And revel in your savings however you find them.

Contact James Gilden at www.theinternettraveler.com.