Why Is Agoda So Cheap? (Or Is It?)

Agoda, like many online travel agencies, offers very competitive rates for accommodations and other travel services.

Many people are surprised at the low rates that Agoda is able to offer and are wondering why Agoda is so cheap.

There are some reasons why their prices appear cheaper than their competition like Booking.com, but all their prices are cheaper.

Here are some reasons why their prices are cheaper: 

1. Volume Discounts: Agoda negotiates prices directly with hotels and buys a high volume of bookings. They assure hotels a specific number of bookings in return for lower rates.
2. Special Promotions: Agoda often displays exclusive promotions, especially as the default on their homepage. They have specific deals with their partners that you just won’t see on all other online platforms. that aren’t available through other channels. 
3. Dynamic Pricing: Agoda uses dynamic pricing like you might have seen on airlines. It is quite annoying for consumers like you and me because it means that the prices change based on supply and demand, time of booking, and other factors. It also means you are better off getting in way ahead of time and not during peak periods.
4. Comparative Platform: Agoda is yet another online travel agent that aggregates (or collects) offers from various hotels and accommodations. This makes it easier to compare options and get the best deals.
5. Overhead Costs: In general, online platforms like Agoda have lower overhead costs than traditional travel agencies or direct bookings, which means savings for customers.
6. Loyalty Programs & Points: If you were not aware, Agoda offers a loyalty program where customers like you can earn points for bookings. Like with airline miles, these points can be used for discounts on future bookings, meaning you’re getting a cheaper deal, especially if you’re a frequent user.
7. Private Deals: Agoda may have “secret” or “private” deals for members or when users are logged into their accounts. These deals might not be publicly searchable and can sometimes offer substantial savings.

Is Agoda Always Cheaper?

However, while Agoda can sometimes be cheaper, it’s not always the case. It’s a good practice to compare prices across different platforms, including the hotel’s official website, before making a booking.

Some users on platforms like Reddit and Trip Advisor have said that they don’t always find Agoda to be the cheapest especially outside of Asia.

Additionally, take into account other factors like cancellation policies, amenities, and customer service when evaluating the overall value of a deal. It is not always the price that you are seeing that is the most important.