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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?

 

 


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Jay 3 years ago

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.

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Glaciers Reach 8 months ago

When i work out the commission I pay over my rental rate it can some to 25-30% when booking charges fees on my cleaning fee as well. How can this make sense? 

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SWLinPHX 8 months ago

As I had stated in a previous post simply increase your Admin fee to 7% over your commission fee (so charge 22% admin fee for 15% commission or 25% admin fee for 18% commission).  Your rates will come out the same that way.  But yes, by charging these fees you may get less bookings.  That is due to Booking.com's exorbitant commission to begin with, even before they started applying it to our cleaning and admin fees as well.  But that's okay, we book solidly thru all the other sites that charge only 3-8% commission.

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Captainsquarters21 3 years ago

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.

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Jay 3 years ago

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?

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Glaciers Reach 8 months ago

Nothing - you lose more money. What a joke. I keep rooms open on airbnb and pay less fees versus more bookings on booking and pay more fees and wear and tear. Work it out! Its a scam 

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Info 3 years ago

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

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Jay 3 years ago

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

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Katerinka12 3 years ago

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...

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Barbara Biggs 1 year ago

They could put a limit of extra charges as a percentage of the rental amount. Simple. Anything over that is charged a commission.

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Jay 3 years ago

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.

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Gary & Lynne Franks 3 years ago

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?

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Jay 3 years ago

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. 

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savithree Naidoo 3 months ago

Hi, I am new with booking.com I have set my commission rate 18% as well, to pick up my ratings but a big chunk of my money is being taken,

I'm just curious to know if you managed to find a way to reduce the commission percentage and if you can please assist me by sharing the info?

Thank you so much

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Jay 3 months ago

I stopped using Booking.com completely. I pretty much do everything through Airbnb now. 

The commission rates were just too high. Airbnb only takes 3% from hosts. 

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fluff 3 years ago

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....

 

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SWLinPHX 1 year ago

You can easily up your administrative/service fee percentage.  Now that Booking takes their commission off of everything you charge (rental, cleaning fees, admin. fees, etc.) you will need to compensate by charging guests 7% more in service fees than Booking.com charges you in commission: so if you pay 15% commission then your service fee needs to be 22%.  For Preferred Partners you'll have to up it to a whopping 25%!

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Dominique Payn… 1 year ago

I’m thinking about moving on.. they are trying to rake their loss in through being greedy.. it’s been hard for us as well. 

really not happy.. 

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Jay 3 months ago

Yes, I have moved all of my listing over to Airbnb... their commission is only 3%. At first I didn't like Airbnb but it's been working quite well for us now. 

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savithree Naidoo 3 months ago

Thank you for feedback, I will probably have to look into that as well

I am South African an the lowest commission with BDC is 15% but I picked it up to 18% to pick up my rating,

I have also did some promos and getting guests through them but losing like 40 to 50%, it's just a waste of my time 

However, I appreciate your response and will try to do the same, one quick question though, how do you get more exposure from airbnb,any tips?

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Jay 3 months ago

I honestly haven't had any issues with getting exposure on Airbnb... it was a little slow at first once you start getting some reviews it really picks up on its own. Also reaching the "Super Host" status also boosts your listing performance. And that's not a hard status to reach. 

Two things that have really helped me though are using social media to promote our cottages and having direct links to our airbnb listings. 

And secondly, we have a Nordic Spa that open 15 minutes away from our cottages. It's been a huge draw for the community, so in the name of my listing in included "Close to Nordic Spa". That way anyone coming into the area for the spa will is that in their search results before they even click on our listing. That has worked really well for me... so I suggest doing the same if there is an attraction close to your rentals. 

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SWLinPHX 3 months ago

As I had stated previously, you can easily up your administrative/service fee percentage.  Now that Booking takes their commission off of everything you charge (rental, cleaning fees, admin. fees, etc.) you will need to compensate by charging guests 7% more in service fees than Booking.com charges you in commission: so if you pay 15% commission then your service fee needs to be 22%.  For Preferred Partners you'll have to up it to a whopping 25%!

 

Let me add that if you also list your vacation rental with Expedia Partners (Expedia, Travelocity, Orbitz, Hotwire, Hotels.com, trivago, etc.) you'll see they charge the same high commission, except they don't have the option to add a percentage-based admin. fee, only a flat surcharge.  Therefore you have to actually raise your nightly rates by percentage there in your accommodation/rental charge.

 

And yes, I agree.  I am so tired of being bombarded with "Opportunities", 95% of which are that we should lower our rates or minimum stay to get more bookings, and do away with a cleaning fee.  Gee, really?  Heck, for that matter why not just charge $10/nt.?  I'm sure that would get more bookings too!

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Jay 3 months ago

Yah, I used to like booking.com when I first started but once I calculated how much a year they were taking in fees, it was hard to justify. And what traveler wants to see: fee1, fee2, fee3, fee 4 tagged on to their invoice. There's pros and cons to every platform I guess. Airbnb is not perfect but it's been working ok for me the past 2 years during the pandemic. It seems to be the app that locals are using for staycations. Booking.com primarily used to bring be European guests so it didn't make sense to continue using it the past 2 years. 

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SWLinPHX 3 months ago

Oh we are filling up all our rentals just fine on other sites and don't need Booking.com.  That's why we are able to charge a one lump percentage fee to offset costs.  If people are willing to pay it so we make the same we would make on any other site or when they book directly so be it.  If not, that's okay too.  But we do get a lot of bookings (moreso now than ever).

 

And I like the variety of guests (more international) and also the way you can fine tune rates like a hotel (offering a traveler multiple rate options for the same rental for the same dates, depending on how strict/refundable the cancellation fee is for instance).  Now that we have been with Booking so long it is easier to onboard with all the Expedia sites which operate almost identically (Extranet, 15-18% commission, small discount to longtime clients, etc.).

 

We'll advertise all over if A) it is a popular site that produces bookings for us and  B) it doesn't cost us any more in subscription or commission fees that we would otherwise make.  And sometimes we make a lot more on cancellations if we offer a great rate with no cancellation refund and then they cancel --and we then go on to fill those dates to someone else anyway.

 

And of course, the advantage of being on a site people also use to book travel and hotels, etc. is more exposure than just the vacation rental demographic.