Many consumers use the internet to research vacations and hotels. It is convenient for people to browse the internet at their leisure and to find all the information about potential hotels and compare before making a decision. A good website can make or break a hotel. People are opting against using travel agents more and more and instead are doing their own research and booking. Most consumers have specific ideas about what qualities they desire in a hotel and it is crucial that they are able to view descriptions, features, and photographs online.

Online booking tools are simple for consumers to use. After viewing the hotel's information, the consumer is able to check the availability of the desired type of room and then reserve it in the same moment. They input their personal information, select the desired room features such as bed type and view, and then they enter their payment information so the hotel can charge them. Most people feel more secure entering their credit card information themselves onto a secured website instead of reading their credit card number to a person on the telephone. The consumer then receives printable confirmation of their booking. This is done at no cost to the consumer, whereas booking by telephone often incurs a long distance charge. The information entered by the client is instantly available to the hotel and their room availability is automatically updated. The hotel can also verify the credit card in the same moment.

Implementing an online booking tool can increase a hotel's profits exponentially. The startup and maintenance cost is low and the benefits are far-reaching. A well-presented and properly promoted website with an online booking tool is one of the best investments a hotel can make. If a traveler visits a hotel's website and is impressed with what they see, they can book the hotel in the same moment. If the potential customer is not able to book online and instead has to write down the phone number to book via telephone, there is always the chance they may change their mind, forget, or find something they like better in the meantime. A convincing website will ensure the client books the hotel before leaving the website.

An online booking system is very cost-efficient for hotels. Generally, there is a setup fee involved but this is only paid once. The hotel saves money by needing less employees. In the past, hotels rooms were traditionally booked via telephone, which meant the hotel needed to have enough employees available to answer the phone at all hours, as well as people who could speak other languages. Online booking tools that are translated into other languages make the hotel easily booked by people from all over the world. Further, booking phone calls take up a lot of time. When a client books a room online, the hotel employees do not lose any time. All of the personal information is entered by the client, freeing up the hotel employees to focus on more pressing tasks and reducing the number of employees the hotel is forced to employ, and thus increasing their profits.

Booking hotel rooms online benefits both the hotel and the client. Online booking is becoming so prevalent that many consumers will only reserve a room by this method. A hotel that does not offer this service is essentially hurting its business.