Reducing Booking.com Commissions for Your Hotel
In this article, we’ll discuss some tips to help you reduce the commissions charged by Booking.com for your hotel.
Option 1: Disable Flexible Pricing Without Prepayment
When you first list your property on Booking.com, it’s crucial to disable the flexible pricing option without prepayment. This setting can attract visitors who are looking for short-term rentals mainly to get a visa.
These individuals will make reservations but have no intention of staying at your property. By disabling this option, you can avoid receiving false bookings that block future reservations from genuine travelers.
Option 2: Understand Billing and Commission Structure
Booking.com charges a commission for each booking, ranging between 15% and 22%, depending on the property type and its location. To calculate your commission, subtract the commission percentage from the total amount paid by the guest.
For example, if a guest pays €355.55 for a reservation, Booking.com will charge you a commission based on the percentage specified in your property’s listing. To verify this information, go to the “Establishment” section of your account and look at the commission percentage listed there.
Option 3: Adjust Pricing Strategically
By adjusting your pricing strategy, you can minimize the impact of Booking.com’s commission fees on your revenue.
- Offer competitive rates during off-peak seasons to attract more guests and generate additional revenue.
- Implement a dynamic pricing strategy that adjusts room prices based on demand, occupancy rate, and competitor prices.
- Offer discounted or promotional rates for longer stays to encourage guests to book for extended periods, thus reducing the commission percentage per night.
Option 4: Use Booking.com’s Promotions and Discounts
Take advantage of Booking.com’s promotional offers and discounts to reduce your commission fees.
- Participate in Genius program, which rewards frequent Booking.com users with exclusive discounts on your property.
- Offer last-minute deals to guests who book within a specific time frame before their intended stay.
Option 5: Negotiate with Booking.com Directly
If you have a large number of bookings through Booking.com, consider negotiating a lower commission percentage with their sales team.
Conclusion
By implementing these strategies, you can reduce the commissions charged by Booking.com for your hotel and increase your revenue. Keep in mind that every property is unique, so tailor these tips to best fit your specific situation.
