Why Is Agoda So Much Cheaper Than Booking.com?

Why Is Agoda So Much Cheaper Than Booking.com

Have you ever wondered why Agoda consistently offers lower prices than Booking.com? While both websites offer a wide range of options, there is a notable price difference between the two. So, why is Agoda so much cheaper than booking.com?

By understanding these factors, we can gain insights into why Agoda is often the more cost-effective option. So, let’s delve into the details and uncover why Agoda is so much cheaper than Booking.com.

Why Is Agoda So Much Cheaper Than Booking.com?

Booking.com and Agoda both have different business models which contribute to their pricing disparities. Booking.com primarily uses the Agency model. On the other hand, Agoda utilizes the Merchant model in addition to the Agency model. Under this model, Agoda buys and resells services at a greater discount

Agoda also offers customers the convenience of paying with their local currency, dynamic pricing technology, and recommendation systems to help them find the best deals. 

All these factors contribute to why Agoda is so much cheaper than Booking.com.

Here is a detailed overview of the various elements that make Agoda cheaper:

  • Contractual Agreements With Hotels:

Agoda has special agreements with hotels that allow them to offer lower prices than other booking websites. This means that customers can get discounts on rooms based on their length of stay or the type of room they book. 

Agoda also offers discounted “hot deal” rooms, which are often the same quality as other rooms but cheaper due to special arrangements between Agoda and the hotel.

  • Commission And Fees

Booking.com charges a commission for every hotel transaction they process on behalf of their customers. However, Agoda does not charge a commission on its hotel bookings. 

This means that the total cost of a booking will be lower when booked through Agoda.

  • Currency Exchange Rates

Currency Exchange Rates
Photo by Bermix Studio on Unsplash

Agoda allows customers to book hotels in different countries and pay with their local currency, making it easier for customers to find the best deals. 

Booking.com does not offer this option, which can lead to higher prices due to exchange rate fluctuations.

  • Algorithm And Recommendation Systems

Agoda’s algorithm and recommendation systems are designed to help customers find the best deals. 

By monitoring customer preferences, Agoda can show them hotels that match their needs and at the same time offer discounts. 

This means that customers can quickly find a great hotel for a great price without having to search through hundreds of listings.

  • Dynamic Pricing

Agoda’s dynamic pricing technology allows them to adjust their prices in real-time based on demand, availability, and other factors. This means that customers can get the best deal available for their preferred hotel. 

Booking.com does not offer this feature, so customers may end up paying more than necessary if they don’t shop around.

Is Agoda Legit?

The answer is yes. Founded in 2005, Agoda has become one of the world’s leading online travel agencies (OTAs), offering great deals on hotels all over the world. In addition, customers who use Agoda’s “Secret Deals” feature can often find even better prices.

Agoda is owned by Booking Holdings Inc., which also owns Booking.com, Priceline, and Kayak.

All of these companies have a long history of providing safe, secure, and reliable services and have earned customer trust over the years. 

Agoda is no exception: It is a legitimate business that operates in accordance with all applicable laws and regulations.

Agoda also offers a range of other useful services, such as an easy-to-use mobile app and friendly customer service. 

The company also provides a variety of payment options, including major credit cards, PayPal and Apple Pay. 

Additionally, its rewards program gives customers points for each hotel booking they make, which can be redeemed for discounts on future bookings.

What Does “Pay At Hotel” Mean On Agoda?

Pay at Hotel is a payment option available on Agoda that allows you to pay for your booking directly at the hotel instead of when you make the booking. By choosing this option, customers can enjoy certain benefits such as more flexibility in payment terms and avoiding cancellation fees.

When you select this option, Agoda will only pre-authorize your credit card for a small amount. The actual payment will be done at the hotel when you check-in. 

Depending on the hotel’s policy, they may require a valid credit card or cash to guarantee the booking. In addition, some hotels may charge additional fees for late checks.

Upon arrival at the hotel, you may be required to sign a document to verify your payment terms. It is advisable to thoroughly review this document before signing it. 

You should also ask the hotel if they accept any other forms of payment such as debit cards or cash. 

Finally, if you need to cancel or modify your booking, you can contact Agoda directly

How To Book A Hotel On Agoda?

To book a hotel on Agoda, start by entering your destination, travel dates, and the number of guests on the homepage. Agoda will then display a list of available hotels with prices and ratings. You can filter the results based on your preferences and requirements. 

Once you have chosen a hotel, select the room type and click on “Book Now.” Enter your personal details and payment information to complete the booking process.

Here’s a video that shows how you can book a hotel on Agoda without any hassle:

How Does Agoda’s Pricing Differ From Booking.com?

Agoda’s pricing differs from Booking.com in terms of the discounts and benefits offered to loyal members. While both platforms generally offer the same prices on the same properties, Agoda provides better discounts for its VIP members, specifically the Agoda VIP Gold status. 

In comparison, Booking.com offers discounts and benefits through its Genius program, with different levels of perks based on a user’s Genius level. 

Based on personal experience, Agoda’s VIP Gold status tends to offer better discounts, so individuals often choose to stick with Agoda for their bookings.

Here’s a table with payment options that Agoda accepts:

Payment Method Accepted by Agoda
Bank Transfers Yes (in some cases)
Alipay Yes (in some cases)
Agoda Gift Cards Yes
Mobile Wallets No
Cryptocurrency No
Apple Pay Yes (in some cases)
WeChat Pay Yes (in some cases)
Credit and Debit Cards Yes
Cash on Delivery No
PayPal Yes

Are The Deals On Agoda Too Good To Be True?

The deals on Agoda may seem too good to be true, but that is not necessarily the case. Agoda is a reputable online travel booking platform that offers a wide range of accommodations at discounted rates. They work with hotels and other accommodation providers to negotiate special deals.

While some deals may be limited-time offers or have specific terms and conditions, many of the deals on Agoda are legitimate and can provide significant savings for travelers. 

Note📝: It is always important to read the fine print, check customer reviews, and compare prices on other platforms to ensure you are getting the best deal possible.

What Are Some Tips For Finding The Best Deals Between Agoda And Booking.com?

First, it is important to compare prices between the two platforms to ensure you are getting the best deal. Additionally, utilizing price comparison tools can be helpful in finding the lowest prices available. Signing up for loyalty programs on both platforms can also provide access to exclusive deals and discounts. 

Checking for promotions and deals on both Agoda and Booking.com can help save money on accommodations. 

Being flexible with travel dates can also lead to finding better deals, as prices may vary depending on the time of year. 

Lastly, considering alternative accommodations such as guesthouses or vacation rentals can sometimes offer better prices and unique experiences.

Are There Any Potential Drawbacks To Booking With Agoda Due To The Lower Prices?

Are There Any Potential Drawbacks To Booking With Agoda Due To The Lower Prices?
Photo by Behnam Norouzi on Unsplash

One of the drawbacks is the cancellation policies. Agoda may have stricter cancellation policies compared to other booking platforms, which can be inconvenient if you need to change or cancel your reservation. Another potential drawback is the possibility of hidden fees. 

While Agoda offers lower prices, there may be additional fees that are not clearly stated upfront, leading to unexpected costs. 

Currency exchange rates can also be a concern when booking with Agoda. 

The rates used for currency conversion may not be favorable, resulting in higher costs for international travelers. 

Additionally, Agoda may have limited options compared to other booking platforms. 

This means that you may have less variety and availability when searching for accommodations. 

Lastly, changes to reservations can be challenging with Agoda.

It may be difficult to make changes to your booking once it has been confirmed, leading to inconvenience and potential complications.

Do Agoda And Booking.com Offer The Same Accommodations?

They do not offer the exact same accommodation options. Booking.com provides a wide range of accommodations including hotels, motels, villas, hostels, flight, and home options. On the other hand, Agoda offers discounted rates at millions of hotels and private homes worldwide, ranging from budget options to luxury stays. 

Additionally, Agoda also allows users to book discounted flights, rental cars, and hotel and resort packages. 

Agoda’s range of accommodation types is diverse, including everything from tents to treehouses to tropical villas, and they also list over 1.5 million private homes. 

Agoda vs. Booking.com – How Do They Compare?

Agoda focuses more on Asian destinations and offers a wider range of accommodations in that region. On the other hand, Booking.com has a global presence and offers a broader selection of accommodations worldwide. Both platforms have user-friendly interfaces and competitive pricing.

However, the choice ultimately depends on the traveler’s specific needs and preferences.

A detailed comparison between Agoda and Booking.com is given below:

Pricing And Fees

When it comes to pricing and fees, both Agoda and Booking.com offer competitive rates with no hidden fees. 

However, Agoda does have a slightly better price guarantee policy than Booking.comif you find a lower rate for the same hotel, Agoda will match it and even give you an additional 10% discount.


Agoda offers more than one million hotel listings in over 200 countries, while Booking.com has an inventory of over 1.5 million hotels across 224 countries. 

In addition to hotels, Agoda also provides rentals for apartments and villas, as well as unique experiences such as tours and activities. 

On the other hand, Booking.com only offers hotel bookings and does not offer any other rental services.

Features & Loyalty Programs

Agoda offers various features such as mobile booking, price guarantee, and a loyalty program called Rewards Points, which gives customers points for their bookings that can be used to earn discounts on future stays. 

Booking.com also has a loyalty program called Genius, but it is only available to select customers who meet certain criteria.

Here’s a table comparing the loyalty programs offered by Agoda and Booking.com:

Loyalty Program Agoda Booking.com
Name Agoda Rewards Genius
Description Earn points with each booking that can be used to unlock discounts. Access to Genius Level 1 after 2 bookings, with potential for upgrades to higher levels for more benefits.
Benefits Discounts, exclusive deals, and access to Agoda Insider Deals. Discounts, free room upgrades, and other perks.
Tier System Points determine membership level: Silver, Gold, Platinum, and Diamond. Levels within Genius program offer increasing benefits.
Global Reach Available worldwide. Available worldwide.
Membership Fee Free to join. Free to join.
Additional Info Points earned within a 12-month period determine your membership level. Progressively earn rewards and benefits with each booking.

User Experience & Customer Support

User Experience & Customer Support
Photo by Tim van der Kuip on Unsplash

Both Agoda and Booking.com offer a simple and easy-to-use user interface that makes it easy to navigate the site and find the perfect accommodation for your trip. 

In terms of customer support, both sites offer 24/7 support via email or phone, but Agoda is known for its more personalized approach to customer service.

Payment Methods

Both sites accept a variety of payment methods, including credit and debit cards, PayPal, and more. 

However, Agoda does have an advantage in terms of payment choices – it offers support for over 30 different currencies from around the world.

Dynamic Pricing Algorithm

Agoda uses a dynamic pricing algorithm to adjust prices based on the demand and availability of hotel rooms in real time. This helps customers get the best price for their stay without having to worry about changing rates. 

Booking.com also has a dynamic pricing algorithm in place, but it is not as sophisticated as Agoda’s and does not offer customers the same level of savings.

Here’s a table comparing the advantages and disadvantages of Agoda and Booking.com:

Aspects Agoda Booking.com
Advantages – Strong in Asian markets – Global presence
  – Loyalty program (Agoda Rewards) – Genius loyalty program
  – Exclusive deals and promotions – Best Price Guarantee
  – Mobile app with mobile-only deals – Wide variety of accommodations
  – User-friendly interface – Detailed guest reviews and photos
Disadvantages – Potential hidden fees – Higher prices in some cases
  – Limited customer support – Less emphasis on Asian markets
  – Fewer accommodation options in some regions – Less straightforward cancellation policies
  – Possibly fewer reviews in certain areas – Less focus on exclusive member benefits
  – Not as well-known globally – Varied quality of customer service


Why Is Agoda So Cheap?

Firstly, they have a large network of hotel partners, allowing them to negotiate discounted rates. Additionally, they leverage technology and data to optimize pricing and identify the best deals. Agoda also operates in a highly competitive market, which drives them to offer competitive prices to attract customers. 

Finally, they may also offer promotional deals and discounts to further lower prices.

Is Agoda Trustworthy?

Agoda is a well-established online travel agency that offers a wide range of accommodation options worldwide. Agoda has a large customer base and positive reviews from many users. However, as with any online platform, there may be occasional issues or negative experiences reported by some users. 

Are Agoda Prices Per Night?

Yes, Agoda prices are typically per night. When searching for accommodations on Agoda, the prices displayed are usually for one night’s stay. This allows travelers to easily compare the cost of staying at different hotels for a specific duration of their trip. 

Is There A Catch To The Lower Prices On Agoda?

Firstly, the lower prices may be for specific room types or non-refundable bookings, meaning you may have less flexibility in case of changes or cancellations. Additionally, there could be hidden fees or charges that are not immediately apparent when booking, such as resort fees or taxes. 


In conclusion, Agoda’s lower prices compared to Booking.com stem from diverse factors. Negotiations with hotels, distinct commission models, and dynamic pricing allow Agoda to offer competitive rates. 

While tempting, travelers should be cautious of potential drawbacks like stricter cancellation policies. Conducting thorough research ensures that affordability doesn’t compromise quality. 

Swati Jaiswal

Swati Jaiswal is a dedicated traveler and an even dedicated individual who specializes in travel, digital marketing, & health and fitness niches. Passport stamps and coffee stains are her badges of honor.

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