@Tropical_Willie and @SavoirFaire Thank you for the additional information. Please correct me if I am wrong…the price increase based upon computer information is only applicable to the third party sites? This isn’t applicable to the airlines’ direct sites, is it?
@SadieMartinPaul At hotels, some may drop the rate in the last minute if they know that they aren’t going to sell out, but not all do. The key is in forecasting demand and setting appropriate rates for that day based upon it. There is a long list of other factors that need to be taken into consideration as well when pricing hotel rooms. The company that I worked for (parent company for nine world-wide chains) found it much more financially strategic to set prices and stick to them, even on the day of arrival.
@chyna If you ever need a hotel room, you are much better off booking it in advance, then calling the hotel directly closer to the date to get a quote for the same stay. On occasion, they may quote a lower rate. If so, book it and cancel the original reservation. Often though, you will find that the rate is the same, has gone up, or the hotel is sold out.