We, at WISE, are the ones that constantly put our databases to the test in order to provide hotels and exciting experiences at reasonable prices.
Now that we have the alpha version of the marketplace with over 240.000 travel services successfully integrated and available for booking, we conducted cross-comparative analysis in order to find out if our rates are as competitive as promised.
THE METHODOLOGY USED FOR THE PRICE COMPARISON
We compared more than 10.000 hotels worldwide, based on the scenario of a city trip at the end of each week (Friday to Sunday, 2 persons, double room) for upcoming 3 months, refundable purchases, spread across different continents (Asia, Europe and USA) of top 30 destinations each. An equal number of 5, 4 and 3-star hotels per city were included. The WISE price of this identical room was afterwards compared against both Agoda.com and Booking.com.
NOTE: The rates shown on WISE do not have any hidden fees (city tax paid separately) and comparison was made based on identical room types and meal plans against the smaller price between Agoda and Booking.
The inventory price varies by location
The analysis helped us verify that the promise is being delivered - to cut the retail accommodation prices by working with small margins and with wholesalers and tour-operators throughout the world. The individual results have identified the GEO locations that we can improve, as well as the ones which are far better than expected. The reason why some regions under-perform when compared to others is that of the distribution channels set up that we currently have as partnerships.
The findings of this research are actually far more significant since our current model validates the possibility to reach average discounts in excess of 20%, as long as we can structure the proper partnership with the right distribution channels.
Europe has savings across 76% of the locations we tracked, between 5% and 40%. In 25% of the remaining cases, we are around 10-15% more expensive than Booking.com. This percentage gets lower when we look at room only prices. This on its own will be an on-going process, where we will constantly seek, compare and connect with better suppliers to further increase the value of our accommodation pricing.
For example, a 3* hotel in the central part of Paris is available on Booking.com for €75 and on WISE for €70.87. At the same time, alternative 3* hotel in the same location is 122.38% more expensive on Booking.com with the announced rate of €128 compared to €57.56 on WISE. The reasons for such deviations can be numerous. However, whether a guest will save €4 or €70 per night is entirely a matter of careful and patient research of our inventory. Therefore, members shall not expect to find their accommodation on WISE at a fixed 20% lower rate than the traditional OTAs, as this value is the average we are trying to achieve.
The USA is our top performer among currently measured regions. There are extreme discount deviations. There are locations with isolated cases of heavily discounted properties and others available on the lower deviation of the discount scale, with prices closer to the one of the OTAs.
Also, very we've found amazing discounts on all exotic vacations, with prices up to 60% lower worldwide.
• Northwestern Asian countries are in over 63% of the cases, cheaper on WISE with percentages between 10 and 15.
• Northeast Asian countries are in over 67 % of the cases, cheaper on WISE with percentages between 5 and 15.
• Southwest Asian countries are in over 72% of the cases, cheaper on WISE with percentages between 10 and 25.
• Southeast Asian countries are in over 93% of the cases, cheaper on WISE with percentages between 15 and 50.
General conclusion - In terms of prices verified on the same type of room, same hotel and meal plan, our study showed that:
• Booking.com is 15% more expensive than WISE on average
• Agoda.com is 22% more expensive than WISE on average
Choose WISE, a travel agency that gives you better prices and donates the entire profit to charity!