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How Much Commission Do Hotels Pay Booking.com?

Booking.com is a popular online travel agency that has been around since 1996. It is known for its wide selection of accommodation options, from hotels and resorts to apartments and hostels. Many travelers around the world find the platform convenient for planning and booking their trips. For hotel owners, Booking.com can be a great way to increase their visibility and revenue. However, they have to pay a commission fee to Booking.com for every booking made through the platform. In this blog post, we’ll answer the question “how much commission do hotels pay Booking.com?” in detail.

What is Booking.com’s commission structure?

The commission fee that hotels have to pay to Booking.com varies depending on several factors, such as location, property type, and booking volume. However, Booking.com’s standard commission rate is 15% of the booking value (excluding taxes and fees). This means that if a traveler books a hotel for $100, the commission fee that the hotel has to pay to Booking.com is $15. This commission rate is higher than that of some other online travel agencies like Expedia, which charges around 12%.

Are there any discounts or special rates for hotels?

Booking.com offers a Genius program, which rewards frequent bookers with lower rates and other benefits such as free breakfast or room upgrades. Hotels that participate in the Genius program can offer lower rates to Genius members while still paying the same 15% commission fee to Booking.com. This means hotels can make less revenue per booking but may attract more customers overall.

Can hotels negotiate their commission rate?

Hotels cannot negotiate their commission rate with Booking.com. The standard rate is set by Booking.com, and hotels have to accept it when they sign up to be listed on the platform. This can be beneficial for smaller hotels, as they get the same exposure and services as larger hotels without being at a disadvantage.

What additional fees do hotels need to pay?

In addition to the commission fee, hotels may have to pay other fees to Booking.com, such as:

  • Payments processing fee (usually 2% of the booking value)
  • Cancellation fee (charged if the guest cancels the booking after the free cancellation period expires)
  • Virtual Credit Card (VCC) fee (charged for hotels that choose to receive payments through VCCs)

Is it worth it for hotels to list on Booking.com?

Listing on Booking.com can be beneficial for hotels in terms of exposure and revenue. The platform has a massive customer base and is available in over 40 languages. By listing on Booking.com, hotels can reach a wider audience and increase their bookings. However, listing on Booking.com also comes with a commission fee, which can be a significant expense for hotels, especially those with lower room rates or smaller properties.

Hotels should carefully weigh the pros and cons of listing on Booking.com before making a decision. It’s always recommended to consider other distribution channels and evaluate their commission rates and terms. In some cases, hotels may get better deals by partnering with smaller online travel agencies or using direct booking channels.

Conclusion

In summary, the commission fee that hotels pay to Booking.com for every booking made through the platform is 15% of the booking value. This is a standard rate that cannot be negotiated by hotels. However, hotels can participate in the Genius program to offer lower rates to frequent bookers while paying the same commission fee. In addition to the commission fee, hotels may have to pay other fees such as payments processing or cancellation fees. While listing on Booking.com can be an effective way for hotels to increase their revenue and exposure, it’s always recommended to evaluate other distribution channels and their commission rates before making a decision.

Unlock a world of unparalleled online shopping at Lazada, the apex of e-commerce in Thailand! Dive into a vast sea of products, from the latest electronics to trendsetting fashion staples. Experience startling deals, effortless payment processes, and swift delivery right to your doorstep. Discover More about the best place for online shopping now!

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