6 reasons why you should steer clear of booking through online travel agencies

Editor's note: This post is updated regularly with new information and deals.

Online booking platforms are everywhere, including popular names like Expedia, Booking.com, Travelocity, Priceline, Hotels.com, Kayak, and even Walmart's site for Walmart+ members.

Many of us have probably visited these websites at least once and maybe used one to book a trip.

Online travel agencies (OTAs) certainly help compare prices and options across airlines, hotels, rental services, and car companies, eliminating the need to browse multiple sites before making a reservation.

They also offer the convenience of having all your travel details in one place, from flights to hotel bookings and car rentals, which some people find helpful.

However, these platforms have significant downsides. Changing or canceling flights after booking with an OTA can be more complex (and sometimes pricier). Additionally, hotel loyalty members might lose out on earning points or accessing elite status benefits.

Over the years, we've received numerous reports from TPG readers who've faced challenges when trying to change, cancel, or get help after booking through an OTA.

Here are some reasons why booking through one of these platforms may not be the best choice for you.

Cancellation and modification fees can be harsher compared to booking directly with the provider

One positive outcome from the pandemic's aftermath in air travel is that most major U.S. airlines have largely waived change fees — at least for their full-fare economy tickets (not including basic economy).

However, you may still encounter fees when changing or canceling tickets booked through an OTA.

In some cases, airlines may charge customers extra for making changes to tickets booked via third-party sites. For example, American Airlines' policy states: "A fee (per person) will be required for reservations made through travel agents or other websites that are modified by our Reservations, airport, or Travel Center personnel."

Generally, these additional charges are passed on from the OTA to the customer.

Some third-party booking platforms also charge their own fees for ticket changes or cancellations.

If you're flying with a low-cost airline or on a ticket that includes airline-imposed fees for changing your plans, you might end up paying the booking site's fee in addition to the airline's charges.

For example, Priceline states it may apply its own fees, even if the airline doesn't.

"If your flight's fare conditions allow changes, a per-ticket exchange fee may apply," the OTA's website warns.

While some OTAs don’t charge extra fees, why add complexity by involving a middleman if it’s unnecessary? Unless you find an exclusive fare that can’t be booked directly with the airline or hotel, there’s usually little reason to use an OTA.

Getting a refund can be a challenge

It can be tough to claim a refund for a canceled flight or hotel booking, even if you're entitled to it.

Airlines refunded billions during the peak of the pandemic, but have since tightened some of the flexible policies they had during COVID-19's height.

Even when you're due a refund, the process of requesting one from the airline isn't always straightforward, whether you choose to wait on hold with customer service by phone or send an email.

When booking through an OTA, you're often adding a middleman, as the booking site may need to liaise with the airline to process the refund on your behalf.

And if the travel provider is reluctant to refund you, can you really count on the OTA to fight for you like you would yourself?

When travel disruptions happen, you may find yourself stuck in endless back-and-forth with both the airline or provider and the OTA before receiving the refund you deserve.

You may miss out on points or elite status credit

This one's straightforward: When you book through OTAs, don’t expect to earn points or elite-qualifying credit. Most major hotel chains consider third-party bookings as "ineligible rates," so you’ll likely lose out if you’re trying to earn points for your next redemption.

Similarly, if you book a hotel through an OTA, don’t expect to enjoy any of your elite benefits.

For example, if you hold The Platinum Card® from American Express, your complimentary Hilton Honors Gold and Marriott Bonvoy Gold status won’t apply when booking through an OTA. Say goodbye to perks like your free breakfast at the Waldorf Astoria Maldives Ithaafushi.

However, there are a few exceptions. You can usually still earn airline miles and elite-qualifying credit when booking through an OTA.

Also, travelers who are far from elite status with a major hotel program might not mind missing out on hotel points, especially as some OTAs have their own loyalty programs. Notably, the new One Key program includes Expedia, Hotels.com, and Vrbo.

That said, you don’t need to be a frequent traveler to earn points; the right credit card strategy can handle that for you.

You can’t rely on quick customer support

Getting in touch with customer service when things go wrong is often difficult when you book through an OTA.

Some platforms make it nearly impossible to speak to a representative unless you’re within a week of your scheduled trip.

And even if you do manage to reach someone, it may be hard to find an agent willing to help with your specific itinerary.

To minimize costs, OTAs generally avoid providing comprehensive customer service.

Instead, you'll often be directed to handle all changes and inquiries online, with phone support only available when something goes seriously wrong.

The deals aren’t always as great as they seem

At this point, you might be wondering why anyone would book through an OTA. The primary reason is usually that it’s cheaper than booking directly with the provider. However, I’d argue that the deal may not be as good as it appears.

Why is that?

As I’ve noted, you won’t earn hotel points or enjoy elite perks when booking through an OTA.

If you have status that grants you benefits like free breakfast, parking, lounge access, or late checkout, the value of these perks can add up quickly. However, when you book through an OTA, you’re not entitled to any of them.

In addition, most hotel chains offer a best-rate guarantee. If you find a cheaper rate on an OTA, you can often ask the hotel to match it.

If they do match the rate, it’s the best of both worlds: you get the lowest price along with your loyalty benefits.

You might argue that this logic doesn’t apply to flights since you still earn miles when booking through an OTA, and airlines typically don’t price match.

Even so, it’s always wise to consider the potential need to change your travel plans.

In such cases, as previously mentioned, you could end up paying an extra service fee on top of what the airline charges you. Plus, you'll likely spend a significant amount of time navigating phone menus and waiting on hold.

So, even if the deal seems great at first glance, remember to account for the hidden costs — both financial and in terms of stress.

Good luck dealing with blizzards and thunderstorms.

What happens if your flight is severely delayed or canceled, or you can’t reach your hotel due to weather or other unforeseen circumstances?

Usually, during major weather disruptions, flights are covered by airline waivers, allowing passengers to make changes to their travel plans without penalties.

However, if you book via an OTA, you'll still need to contact the customer service of that booking site to make any changes. And, as you can imagine, reaching them during a major snowstorm can be a real challenge.

Additionally, OTAs typically stick rigidly to the airline's waiver policies, whereas an airline representative might have more flexibility in accommodating your needs.

For example, while airline customer service may find a way to rebook you a day early ahead of a blizzard without charging you any extra fees, an OTA agent may not offer you that same level of assistance.

The same issue applies to hotel bookings. I've had to cancel hotel reservations last-minute due to unexpected weather disruptions. When I booked through an OTA, I was always told to adhere to the OTA's cancellation policy. However, when I booked directly with the hotel, I rarely had trouble getting the cancellation fee waived.