What booking sites charge hotels in commission
A booking site keeps a share of each booking it brings you, agreed in your contract with it. Most don't publish one rate: it depends on the country, the kind of property and the programmes you join, and some programmes raise it in return for a higher place in the site's search. Here is what each site says about its own commission, with the page that says it, and how to work out what a booking really costs you.
Also called: OTA commission, Booking.com commission, MakeMyTrip commission, online travel agency fees.
A OneHorizyn guide. Updated .
How commission works
Commission is a share of the booking's value that the site keeps. It is collected in one of two ways, and many sites offer both:
- The guest pays you at the hotel, and the site sends you an invoice for its commission, usually once a month.
- The guest pays the site when booking, and the site pays you the price less its commission.
Either way, the rate is set in your contract with the site. Your own contract is the first place to look, before any average.
What each site says about its commission
- Booking.com doesn't publish one rate. Its commission depends on the country, the kind of property and your agreement, and yours is in the agreement and in the extranet under Finance. It is charged on the whole booking, the room and any fees you charge through Booking.com, once the guest has checked out, on one invoice a month.
- Expedia Group doesn't publish its rate either. It says the percentage varies around the world, is shared for your market when you sign up, and is paid only on bookings.
- Agoda's commission depends on where the property is, and sometimes on how the guest pays. Yours is in the Agoda extranet, under Finance.
- MakeMyTrip and Goibibo don't publish theirs.
Airbnb's single fee for hosts, taken from the payout, for most hosts. Hotels and serviced apartments must use this fee; for other hosts it is usually between 14% and 16%.
What the hotels that complained to India's competition regulator said MakeMyTrip-Goibibo charged standalone hotels, as the regulator's order of 19 October 2022 records it: their complaint, not a finding.
What raises it
Each site sells a higher place in its search, paid for with more commission or a discount:
- Booking.com's Preferred Partner Programme, and Preferred Plus above it, cost a higher commission, which Booking.com doesn't put a figure on.
- Booking.com's Visibility Booster raises your commission on the dates you choose, and for travellers from a country you choose, to put you higher on those dates.
- Booking.com's Genius programme costs a discount for its members rather than commission.
- Agoda's Growth Express lets you raise your commission to come higher in its search, without a new contract.
More bookings, on average, that Booking.com says its Preferred partners get, with 65% more views in its search.
The least discount Booking.com's Genius programme asks of a hotel, for Genius members. Booking.com says Genius partners get, on average, 45% more bookings.
Tax, and the bookings that don't happen
- Booking.com charges no commission on local taxes such as a city tax, but in most countries it does charge commission on the GST or VAT in the price.
- On non-refundable and partly refundable bookings, Booking.com charges commission whether or not the guest arrives.
- Mark each no-show and cancellation in the Booking.com extranet within 48 hours of check-out, or you pay full commission on the original booking.
GST on a room night in India: 5% up to ₹7,500 a night and 18% above, as Booking.com tells its Indian partners. For a hotel not registered for GST, Booking.com collects and pays it.
What a booking really costs you
- 1Take the price the guest paid for the room, without tax.
- 2Take off the site's commission at your contract's rate, and the extra for any programme you are in.
- 3Take off any discount you paid for, such as a price for the site's members, that brought the price down.
- 4Take off the tax on the commission and any charge for taking the payment.
- 5Compare what is left with what the same room brings when it is booked on your own website, after your booking engine's and payment charges.
The difference, for each booking from a guest who already knew your name, is what a direct booking is worth to you.
Sources
- Airbnb Help Centre: service fees, read
- Competition Commission of India, order of 19 October 2022, read
- Booking.com Partner Hub: the Preferred Partner Programme, read
- Booking.com Partner Hub: the Genius programme, read
- Booking.com Partner Hub: tax in India, read
- Booking.com Partner Hub: understanding your commission, read
- Expedia Group: its page for hotels, read
- Agoda Partner Hub: what commission do I pay?, read
- Booking.com Partner Hub: the Visibility Booster, read