Localos can publish their rates or only provide personalized offers for travellers, which are usually opaque. So in Toronto's case, only one localo has decided to publish their prices.
We do not plan to integrate hotel listings since our current focus are the long tail accommodations. Any local is able to list his/her place in our marketplace, so we think there is enough room to grow.
I think you should be looking at the large picture here. Yes the local market makes sense to start but the idea is to scale the business up to take a % of a billion dollar industry not a cottage industry with say $100 mill total market.