How Does Hotwire Work? My Hotwire Review

I love Hotwire.com. For those of you not in the know, Hotwire does a lot of travel-related things but I use it to save money on hotels. (Particularly after quitting my job, finding a new one, trying to be better about money, etc.) The gist is that you pay in advance for an unnamed, secret hotel. Paying in advance — non-refundable, mind you — and committing to an unnamed hotel can yield big savings. Really big. (But pay attention to the risks I mention later.)

So…how does Hotwire work? When hotels have rooms that they know would otherwise go unsold, they use Hotwire to fill them. But for Hotwire to bring you these deals, they can’t let you know what exact hotel you are booking until AFTER you book. Once you book your room, they immediately confirm your reservation and show you the hotel name and address. What I think is interesting is that Hotwire GUARANTEES that you will get the lowest possible rate through them. If you book your hotel room and then find a lower rate on the same hotel elsewhere, Hotwire will refund you the difference.

I’ve used Hotwire a number of times now to save on hotels in London, New York, Chicago and Madrid and I have ALWAYS been pleased with the results. That being said, I probably spend a lot more time than other people in making my purchase decision and I stay away from the 2 and 3 star properties, which can be a bit more variable in quality. I thoroughly research all my options and do a little extra research to see if I can determine what hotel I’m actually booking. (There are always clues. Keep reading. )

How Does Hotwire Work? A Step-by-Step Guide

So if you think you are ready to take the risk, here’s how I use Hotwire to save money on hotels, with some screenshots of the app, my preferred way of using Hotwire. (The app includes user reviews. The site only includes the ratings. If you do end up just using the site, pay very close attention to the detailed rating breakdowns. But really, check the app for reviews. You might find it helpful to use a combination of both the site and the app but here, I’ll address the app mainly here.)

Step 1: Open the Hotwire App

Step 2: Insert Your Hotel Search

Step 3: Look for 4 star Hotels with a Hotwire Rating of 90% or Higher. (80% is Okay Too.)

Step 4: Review the Hotwire Mystery Hotel Results

The Wall Street area hotel looks interesting and in my price range. Given that it’s cheap and has a 90% recommended score, this could be a good fit!

Step 5: Select the Hotel and Read the Hotwire Reviews. App only! This is Why You Should Use the App

Read the reviews carefully. Pay attention to the little details you find in the reviews…now we know the hotel is on Water Street and that there are complimentary in-room snacks and beverages. Fire up Google maps to look for 4-star hotels on Water Street and then you can also do some other Google-sleuthing to see if you can find hotels with free snacks and drinks in the rooms.

Step 6: Review the Hotwire Price so You Know What’s Included

So a three night stay at this mystery hotel costs $824.68. Beware of taxes and other fees. Make sure you fully understand the total before you pay! I think that’s one downside to  Hotwire…when they initially quote you the price, they don’t include taxes and fees so if you’re comparing the figures to other publicly available hotel price data, you may not be comparing apples to applies.

How Does Hotwire Work: Hotwire Secret Hotels

By doing a little detective work on Google — as I mention above, the reviews state there’s an entrance on Water Street and there are free snacks — I determine this is the Andaz Wall Street. To make sure I am getting a good deal, I check the Andaz Wall Street website…and they want $922.77 USD for the same stay. If I book through Hotwire, that’s a $100 savings. I’ll take it. Of course, I’m leaving a whole lot of steps out of this research — it’s entirely possible I can find a hotel of similar quality for less money without paying in advance and doing the whole “no name” hotel thing. Generally I do a couple of searches first on Booking.com or Hotwire itself to see what 4- and 5-star hotels are going for in my preferred areas. Then once I’ve established a benchmark, I try to beat the system. My ultimate goal is to get the best quality hotel at the best possible price, which is why Hotwire features in my equation. Especially when I know my plans are set!

My 13 Howire Tips for to Save Money on Hotels

If you are looking at Hotwire “Secret” or “Mystery” hotels, here are some more tips to help you identify them:

1. Be picky based on location. This is the easiest way to narrow down what hotel it might be. Although generally, for cities I’m comfortable with — like New York, London, and Chicago — I am not so picky about location because I know I can take public transport anywhere I want to go. (But then again, I still wouldn’t pick a hotel in the boondocks.) Also remember…if you book a hotel in the wrong location, you could end up shelling out a ton of extra money on transportation. So…be picky about location!!! Do not gamble on an unknown hotel in a sub-prime location.
2. Create a benchmark. Once you decide on your target location, see what similar hotels are going for. Use Hotwire directly to do this via their named hotels, or consider checking Booking.com! Then, your goal becomes to beat this benchmark.
3. Check both the app and the website. If I can make anything clear to you in my Hotwire review, it’s that the app and the website contain slightly different information that will help you determine which hotel you are looking at.
4. I always filter on hotels with approval ratings greater than 90% (although I will accept 80% if need be) and with greater than 4 stars. This is partially me being picky, but partially mitigating my risk of being stuck in a crappy hotel. It also just gives you a smaller pool of hotels to investigate.
5. Read the reviews on the app!! As I’ve noted above, the reviews that appear on Hotwire will often contain little tips that you can string together to determine what hotel it is. For example, in Chicago, the Hotwire reviews for one hotel mentioned its all-white room decor. After a little Google’ing, I determined the hotel was either The James or Public. Based on the location, I was able to narrow it down to The James. In my screenshots above, I highlighted a couple of things in the reviews that helped me determine what hotel this was. Note that for some reason, I can only bring up the reviews on the mobile app. I am not able to bring up the reviews on the website.
6. See if you can find out what the last person got. If you are using the website, if you click on the results of your search, SOMETIMES Hotwire will say “The last person who booked this hotel got Hotel X.” This is a great tip off but please beware…it is not a guarantee.
7. Check the amenities. For example, indoor or outdoor pools can be very rare amenities. So if Hotwire says a hotel has a pool, that’s one way to help you identify your hotel. Like I did in Biarritz France when I booked the Radisson Blu. Also look at things like fitness centers and spa services, which not all hotels have.
8. Pay attention to the TripAdvisor Rating. Personally, I do not like to stay in properties with TA ratings under 4. (Preferably 4.5.) But more importantly….look at the TripAdvisor rating and try to line that up with the actual hotels. Then you can look at Hotwire’s own hotel listings and see which hotels line up. (Note the TripAdvisor Ratings appear on the app currently and not on the website.)
9. Watch out for Internet fees. If the reviews mention that you have to pay for Internet, I look elsewhere. These fees can ruin a good value.
10. Watch out for resort fees and items that aren’t included. Just be cognizant that some more “resort-y” hotels may charge resort fees that are not included in the price. Make sure you understand what extra fees you might be charged.
11. Use Better Bidding! Better Bidding is a great forum loaded with information about Hotwire rates. It can help you determine which hotel is which by matching up amenities. Also, people who have recently booked via  Hotwire will post their “wins.” If you’re booking at around the same time as some of the recent wins, definitely check out this info as it may be more up to date than the overall hotel list. There are other “reveal” sites but I find Better Bidding to be the most robust. The forum guests are also great sleuths and will help you figure out what a property is. Note their information is better for big cities.
12. Always check what the real hotel is going for! If it’s only $25 more expensive in total, you may want to just book directly with the hotel in case anything goes wrong. I only book with Hotwire if I am saving a significant sum.
13. Triple-check your data entry! Before you actual send through your credit card details, CHECK EVERYTHING. There are no refunds! None! That’s not how Hotwire works!

Risks in Using Hotwire to Save Money on Hotels

• Your plans could change and you really can’t get your money back once you’ve booked an unnamed hotel via Hotwire. Really, you can’t, even if you try really really hard. Even if you cry. You will not get your money back. That’s not how Hotwire works! There are many sob stories on the Internet about this.
• You could get to the hotel and totally hate it. Same deal. It’s too late to get your money back.
• If you need two beds, this will be difficult to book via Hotwire. They pretty much give you what they’ve got. So Hotwire is probably a better option for people traveling alone or people who don’t mind sharing a bed.
• Rumor has it that Hotwire guests get the crappiest rooms. This has not been my experience, but I mention it because you’ll find reviews that mention this.
• The hotel may end up overbooked and they send you somewhere else, defeating the purpose of this entire Hotwire exercise. But if you do get moved to a different hotel, chances are it will be a sister property so there’s that. But you still can’t get your money back!

So that’s my quick tutorial for anyone wondering “How does Hotwire work?” My Hotwire review is overwhelmingly positive, especially if you’re not planning too far in advance and you are open to a little uncertainty. If you’re ready to give it a spin, head on over to Hotwire and check it out!

Have you booked through Hotwire? Let me know your review! What was your experience like?

Still Asking Yourself “How Does Hotwire Work?” Check Out My Other Reviews where I Use Hotwire…

• Sleeping in New York Part I: The Thompson Guildhall
• The Waldorf Hilton London
• Using Hotwire for Hotel Rooms in London
• Staying at The Langham London
• Weekend in Biarritz
• Quick Trip to Chicago

Read My Other Travel Tips

• Solo Travel in  Your 40s
• Don’t Be Scared to Travel Alone
• My Favorite Travel Websites
• The Best Gifts for Business Travelers