I am late to the party again with my brilliant ideas, and who is the perfect person to remind me of that, my sister. About a month or so ago, as my friend and I were messing around with AutoSlash.com, we asked the question, why is there not a site that does the same thing for hotels? The beauty about AutoSlash.com, and vehicle rentals in general, is that guests never have to pay for the reservation upfront (unless they chose a non-refundable rate). Everyone can make and cancel vehicle reservations all day long, watching for lower rates if you are consistent with searching…or let AutoSlash.com do all the work for you. So the same model could easily be applied to hotel reservations.

Personally, I had mixed experiences with AutoSlash. We have two reservations for Hawaii booked through AutoSlash, and the prices have only changed once immediately after booking. After the second booking changed prices immediately after booking, I started to have my doubts. I was lead to believe the system automatically was set up to make people think it is working for you by pricing out the vehicle knowing they have a secret discount lined up in their back pocket. The business plan is great, but until I see repricing up until the trip, I will continue to have my doubts.

The problem I have with AutoSlash is never hearing anything else again, wondering if AutoSlash was continuing to run the numbers for me? It has been months since I made the reservations with no price changes from AutoSlash, which concerns me. Have the prices not dropped? Are they trying all the available discount codes that the public can use?

We are continuing our own due diligence to make sure the system is honest, and for the most part there have not been any drastic or noticeable price adjustments. I realize that the reservations are still months away, the prices in Hawaii are expensive, and they have not fluctuated that much. I also have other friends who have had positive experiences with AutoSlash’s service. So I am thinking the AutoSlash service works a lot better with reservations closer to departure, and that maybe I need to give the system more of a chance.

I spend countless hours each week watching prices for the various vacations we have planned throughout the year. I have all the prices stuck in my head (or a spreadsheet), and as soon as I see fluctuation, I jump on it. The whole process is cumbersome to save a couple of bucks, but I really enjoy it. It is a hunt for the best deal. So is there really value in a process that price checks everything for the consumer, and can it be reliable?

This month Tingo.com, a Smarter Travel Media company (i.e. AirfareWatchdog.com) was released to the public. Just like AutoSlash, guests pick their hotel, and if a lower price becomes available, they automatically rebook and refund your credit card the difference. The main difference between AutoSlash and Tingo (besides one is for rental vehicle and the other is for hotels) is that Tingo will charge your credit card in full at the time of the booking; AutoSlash does not, as all payments are directly with the vendor when you pick up the vehicle.

My problem is that the rates through Tingo are fully refundable and do not require pre-payment with the hotels. As is standard procedure, you pay your hotel bill after the service has been provided, unless you use book a non-refundable rate or use a third party like Expedia, Orbitz, etc. Why does Tingo need to take my money ahead of the reservation on a fully refundable rate that I can book directly with the hotel and pay at a later time?

Consumers need to be aware that if they use Tingo to reserve their room, their money is locked up with Tingo until after your reservation. Tingo’s business model is to refund the price difference if the rates falls. While simple in theory, Tingo is acting as a bank for the hotel’s cash. Tingo takes your money, sits on it while earning interest, I presume, and then pays the bill when it comes time to pay the hotel. The more I look into Tingo, the more I see it as just another version of the Orbitz Price Assurance program. I have concerns with this plan as it is personally not for me.

If the website booked a hotel, even requiring a hold on a credit card, which is standard, I would be fine with that. Then if the price dropped, it would cancel the previous reservation and rebook at the lower rate. The whole time, my credit card never would really be charged. Payment for services would eventually be rendered through the hotel. At least that is how I think it should all happen, but maybe the hotels Tingo is partnered with have special restrictions.

I presume most people do not like sitting around watching and waiting for prices to fall. For those, Tingo’s service may be right up their alley, provided they do monitor the prices and issue refunds accordingly. I am initially skeptical.

In all fairness, provided you book a Money Back rate with Tingo, all payments are fully refundable with no cancellation fees from Tingo. Each individual hotel may impose their own cancellation fees, and the consumer is responsible for researching the cancellation/refund policy prior to booking.

So lets see if using Tingo.com can make a difference, at least on the front end.

Since I have Hawaiian beaches on my mind, I randomly chose a peak week during the summer months (July 11-18, 2012) at the Holiday Inn Beachcomber for two adults. As a reminder, we will be staying there too this summer via Priority Club points. I was also familiar with their prices for comparison sake. I chose the same King bedroom with partial ocean view for both reservations.

Tingo’s daily night rate was the same as booking the room directly through IHG/Priority Club, but there was a slight variation in the taxes collected. Using the above example, I somehow think after booking this hotel using Tingo.com, the system will automatically trigger a refund for the small differences in taxes and fees equal to the difference between using their system or directly booking with the hotel. This minor discrepancy makes me have my doubts about the reliability of the data.

One feature that I think Tingo really falls short on, and where AutoSlash thrives is with discount rates like AAA. AutoSlash has the ability to add in your AAA number, Hertz Club number, or any other discount codes available through the car rental companies. I particularly like that I can add in a Hertz AAA discount code (1805452) in AutoSlash to not only get AAA’s rates, but also earn a free car seat rental directly into my reservation. (I am beginning to wonder if my particular specific search on AutoSlash may be another reason I have experienced limited success with rate changes.) Tingo does not currently have other discount and rate features built into their programing, which I think is really being overlooked. At a minimum, they should be able to compare rates with the AAA schedule since those rates are typically not advanced, non-refundable rates.

What I do find interesting though is an infograph put out by Tingo on hotel reservations.

Here you will find some key information for consumers, and where I think Tingo can really thrive. Their current research, and inevitably all the data they gather from future transactions will be compiled to see historically when the largest discounts will be available for hotel reservations. Currently their system shows the largest drop in prices approximately 4 weeks out, as hotel look to cut costs to fill rooms. What I really hope is that Tingo continues to process the discount data and make it publicly available so we all become knowledgeable in the pricing structures.

The important thing to note here is that just because Tingo’s data shows price drops four weeks out, you should not wait until this time to reserve if at all possible. The opposite thing that could potentially happen is prices could also go up if demand warrants it. I think that it is important for consumers to perform their own due diligence when it comes to prices, and book when they feel comfortable. Every situation is completely different depending on supply and demand. The key here though it to realize there is a chance of getting the best deal approximately 4 weeks in advance, and the closer you get, the less likely there may be to get a lower price.

I am no actuary, but I will continue to book my rates when I feel comfortable, based on trending and what else is available, and personally monitor them for lower prices. I will also make note to especially pay attention several weeks in advance of the trip for dropping prices.

As the consumer there are no hard and fast rules on when is the best time to buy something. We can either do our own due diligence and monitor the prices ourselves, or use a system like AutoSlash or Tingo to perform the service for us. Personally, I am too much of a control freak to let someone else do all the work for me without constantly questioning whether or not they are doing their job. I do think that both services have a place in the marketplace, and we will see how they do. I may consider still experimenting with their services to test the waters and see what I can discover.

Maybe next time I need to act more swiftly to get my ideas to press. Save Money, Travel More!