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1
Jay

New Commission Structure is ridiculous?!?

Does anyone else feel that this new commission structure is ridiculously unfair? They are now going to take a commission from our cleaning fees?!?

 

Have I misunderstood something? Is there a way around this that I'm not aware of?

 

Their 15% is already one of the highest commission rates in the industry, do they really need to be dipping into our cleaning fees as well?

 

 

11 Replies

1
Jay

Please send this message or something similar back to Booking.com:

MY RESPONSE TO BOOKING.COM EMAILS:

Please clarify how this new commission structure is more "consistent". When you take it off the nightly rate, that's pretty straight forward. How does applying a commission charge to our "additional fees" make anything more consistent?! It looks like a greedy money grab to me.

Those fees cover costs that are now mandatory to the operation of my business. My cleaning fees go straight to a service that I hire. Now you're dipping into that and I'll have to pay out of pocket to make up the difference. I can raise my cleaning fee but that reflects poorly on me and on booking.com. I try to keep things as reasonable as possible for the traveler while allowing myself to keep my business open.

I don't have an issue paying services out of my own pocket to run my business. BUT I do have an issue paying Booking.com twice! Now we will be paying Booking.com for a service that they themselves are not even offering. How is that allowed, realistic or expected?

It's so ridiculous. Your current 15% is already among the highest in the industry. I'll be blocking off the remaining dates in my Booking.com calendars and removing all my properties from Booking.com at the end of the season. Then you'll be entitled to zero of my dollars... that seems like a pretty consistent commission for you to figure out.

5 months ago
4
Captainsquarters21

READ THEY ARE CLAMPING DOWN ON THE LAS VEGAS HOTELS AS THEY CHARGE HARDLY ANYTHING TO BOOK THE HOTEL BUT THEN THE GUEST ON ARRIVAL HAS TO PAY MANDATORY RESORT FEES TO INCLUDE WIFI, GYM ETC AND SO THE HOTEL GETS TO PAY THEBOOKING AGENT NEXT TO NOTHING IN COMMISSION.

THEY HAVE TO BE SEEN TO BEING FAIR BY DOING IT ACROSS THE BOARD. MY ADVICE WOULD BE TO CONTACT THE GUESTS DIRECT WITH THE EXTRA FEE AND NOT HAVE IT POSTED ON YOUR SITE.

5 months ago
1
Jay

Captiansquarters 21:

How hotels in Vegas choose to use their booking.com account is not my problem. If booking.com feels they are abusing the system then those specific hotel accounts should be suspended.

I have tried charging guests on arrive separate fees because Airbnb does not allow every country to charge applicable sales taxes that are governed by our federal laws. I can tell you that NO ONE likes to be charged extra fees on arrival, so while that seems like an easy solution, it is not. It also created a lot of extra admin time with explanations and cancelations once they find out there are "hidden" fees associated with my properties.

There are more strategic ways to resolve the issue. On a technicality those hotels have not broken any rules, they have found a legal loophole within Booking.com's policies. I'm not saying it's right or wrong. If what you say is true, the bottom line is still that Booking.com feels they could be making more money so they are greedily charging a commission on everyone's cleaning fee. That is going to result in millions of additional revenue in their pocket and more money out of mine for doing absolutely nothing at all.

What will I get for the extra money that I'll be paying them?

5 months ago
1
Info

Thank you for voicing your opinions on these new commission fees. I find it very offensive that Booking.com now collects a commission on the cleaning fee and will be reconsidering our use of this service.

While Booking.com already charges up to 5 times the commission rate compared to other similar services (Airbnb, VRBO, FlipKey), this is an affront to small property owners who provide them business.

Most people I know pass along the same fee to the customer as to what they are charged. By applying a 15% commission rate to the cleaning fee, they are essentially charging us not for the nightly rental but for the costs of maintaining a property. I find this no different then if they decided to charge the commission fee against the TAXES we collect and the utilities we pay.

There is a BIG difference in what should be considered commission able. Nightly rates is absolutely viable, but costs of maintenance? No. This is just plain greedy.

I am going to think about this for a couple of days but right now I am extremely disappointed with this decision and expect we will discontinue our use of Booking.com.

It's good to know I am not alone in this.

Roanne Mayer

+1
5 months ago
1
Jay

Agreed, it's not fair to apply it globally. They should penalize the ones who are abusing the system.

5 months ago
7
Katerinka12

They should penalize the ones who are abusing the system. I also think the same. But practically how will they do that? And how much it will cost them?

In the end of the day the property owners will increase the total price and more guests will go to Airbnb. That is what I see now with all my properties...

5 months ago
1
Jay

Do we really care how much it costs them? They don't care how much this change costs us! lol.

If they can build a global booking platform to manage millions of properties around the world and provide security measure to collect personal and financial information, I'm quite sure they can isolate what hotels are "breaking the rules" and suspend their account until the issue is resolved. They just don't want to do it that way.

Regardless, these conversations go nowhere... Booking.com doesn't care what we think.

5 months ago
1
Gary & Lynne Franks

I agree, this is unfair practice by B.C. In our part of the world their comm is a minimum of 15%, which we increased to 18% in the beginning to improve our ranking. It worked well for  a while and we got lots of bookings from them, but gradually we have got less and less. Fortunately we have been successful in picking up the slack through our own marketing efforts, and now only about 30% of our bookings come from b.c.

If the reason for them now charging comm on cleaning fees etc is to block loopholes that some hotels have exploited, then that's very stupid since everyone is being penalised for the sake of some. Either that or it's totally greed.

Does anyone know how to adjust the commission percentage? I adjusted it long ago and now can't find it anywhere on the extranet. Have they taken control of that away?

5 months ago
1
Jay

It used to be a promotion where you could determine what increase you wanted and then you would "get more visibility" it never worked for me and I think it was a bit of a scam. 

I would check your promotions section of your Xtranet. If you don't find it call them. Their customer support is usually helpful. 

5 months ago
7
fluff

If you mean reducing your commission back to 15% (assuming that is the base commission in your country) then you need to request being taken off the Preferred Partner Programme.

I've only been doing this three years but I don't remember BDC having an actual adjustable percentage directly (other sites yes). It's all done via programmes, campaigns and boosters.....AFAIK....

 

5 months ago