Travel question of the day: Simon Calder on hotel pricing

Have a travel question that needs answering? Ask our expert Simon Calder

Q As you know, when one flies the cost rises the closer one gets to the departure date. This is normal and encourages one to book early. Some months ago, as a more regular traveller than other members of my family, I was left to book several rooms at a budget hotel in Cheshire in July. At that time, the rate that allowed no-cost cancellation resulted in a total of £652; I opted to pay £606 on a non-refundable basis.

Today, the same rooms, dates, etc cost £588 for the refundable version, or £502 non-refundable.

It seems clear that it does not pay to book early. It pays to book and pay the no-cost cancellation rate of £652 in advance. I could then have booked the Saver rate of £502, saving £150.

I believe that the public must be informed of this practice. Are you aware of other hotel chains operating the same practice - and can you offer any advice?

Roger Moran, Suffolk

A As someone who has also bought too far in advance and paid too much, I sympathise. The trouble is: you just don’t know how pricing is going to behave. With hotels, as with airlines, prices are set according to the demand from other buyers. Hotels and airlines constantly tweak rates to try to maximise occupancy. And if you buy at a particularly price you are, by definition, happy with that deal.

A couple of thoughts, though.

First, a premium of 7.6 per cent for the right to cancel (ie the difference between the £652 and £606 rates) strikes me as very modest, and I would have taken it up. Next, before your next booking you may want to look at the latest disruptor in the hotel sector - a website called triprebel.com. You book a hotel through it. Then: “A high-tech search algorithm compares your existing booking with new offers coming onto the market.” If the hotel offers a better rate for the nights you want, “We cancel your old booking and book the new better rate automatically.” That's the theory, anyway.

Every day, our travel correspondent Simon Calder tackles a reader’s question. Just email yours to s@hols.tv or tweet @simoncalder