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Booking.com marketing strategy

As just one small hotel operator/manager, I do not like the latest idea of Booking.com..where they advertise your rooms at a lower price, different and lower tha that as a manager you have entered into the booking calendar.

This is essentially attracting customers to book with booking.com by using a discounted  rate that is computer generated...while the Booking.com organisation say that the virtual payment will correspond to the true calendar rate. That is Booking.com make up the difference!!  All I know personally I am getting some Booking.com guests who have been given strange rates.

Personally I think its a step too far from Booking.com, I don't like it, I think its a form of corp fraud. It also encourages some mutual guests to make contact with the hotel and bargain to get a hotel price below the phoney made up Booking.com price.

8 Replies
645 Views

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Le Petit Hotel

Who is really the loser when you chose to run with a marketing channel like Booking.com?

Its certainly not the hosting hotel, BnB, or what ever you call yourself.

Look at how it works...first Booking.com take 15% off your calendar price for their commission, then they offer a Genius discount to the customer, then they take the Country discount off.... there ain't much left after a total price reduction of say 42%. Then if you deduct VAT or GST of a further 15%, then the 2.9% to 3.5% overseas/foreign bank interchange credit card charges....the only entity making money is not you, the host.

8 months ago
10
M Adamopoulou

Dear Partner you don’t have to use all of the promotions at the same time...You can choose what suits you better and stuck with the them... 

Booking.com offers many promotions  to boost your property but you don’t have to use them.

The Commission is high...with that I agree!!!

Booking.com is a leader... See the bright side...

Wish you a good day...

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8 months ago
2
Le Petit Hotel

Hi there M Adamopoulou, thanks for your views. Yes I would agree that you can refuse the Genius promotion, etc. however it was interesting that recently some Chinese guests had a 12% discount applied which we never signed up for, and to-date, Booking.com have not responded to my questions about this. Also the concept of Booking.com advertising a tariff lower than that which you have entered in the booking calendar, is simply not a good move...as it only favours booking.com while leading to difficulties for the host.

8 months ago
8
pibomarco

Booking.com is sometimes advertising lower tariff that's true. I see it as a "battle" between other OTA's such as Expedia which uses a similar practice. Every agency wants to motivate the guest to book through their platform. But it is from their pocket, which is fine by me in that case.

 

Contact your account manager regarding your active promotions. Or double check in extranet what promos are active. 

 

My strategy:

 

I personally use only Preffered program (18% commission) & Genius program (level 1 and level 2) thats additional 10 - 15% discount and offering a free room upgrade. For regular bookers i don't have any active promotions and the base rate is 20% higher. 

 

Regular guests usually are searching around for cheaper rates, so if they look-up our property (our website) they can receive a discount of up to 15% - 20%. Most bookers that have a Genius status are BDC trusted bookers and they will not look elsewhere. Basicly regular guests that books directly with us receive a discount as genius level 2 bookers, with the difference that I don't have to pay additional commission for those bookings. :)

 

 

 

+1
8 months ago
10
M Adamopoulou

I also don’t mind when BDC lowers tariffs as long as they pay the difference, it’s ok with me.

Cheers!!!

8 months ago
2
Le Petit Hotel

Your country and business circumstances maybe be a bit different....however the issue remains that would - be guests can phone direct & quote the fake Booking.com rate for your hotel, and then use that fake value to request accommodation at or below this tariff..which really is just a nonsense. We know now to simply advise them to book using the fake price...but then we have to ensure that the virtual payment corresponds to the true calendar pricing. 

I maintain that at best its not a good business strategy on the part of booking.com and at worst it is fraudulent. Interestingly we have asked guests their opinion of Booking.com doing this fancy bookwork , and the general view is ..they are not impressed.

+1
8 months ago
8
pibomarco

It may be... I am just sharing my business model that works for me.

My rates are 20% higher on all online travel agencies (except AirBnB little less). So either way if BDC is lowering the tariff (usually around up to 5%?), guest can still get a cheaper rate when booked directly. 

 

Also more than 3/4 of my bookers are Genius guests that get 10% - 15% discount and a free room upgrade if available. In some cases they even get a better deal then regular guests that book directly with us. But they can't know it because they are not in Genius program and those perks are not visible to them. 

 

Also from the other perspective, is it "fair" that a potential guest is using and looking for properties on Booking.com and then asking for a cheaper price directly? 

 

For example your minimum rate is 100€, Booking.com lowers the tariff to 95€, you can still offer the rate for 90€. You eitherway get 85€ from the 100€ once the comission is deducted. 

 

The point is if you are receiving many calls directly, your rates should be higher on booking portals. If you receive a very small percentage of those, then it's basicly pointless and should be focused to acumulate as many bookings on BDC.

 

 

8 months ago
10
M Adamopoulou

Dear Partner, you have a point about lower rates...but as far as I know BDC lowers tariffs during low seasons...

If a guest contacts directly us, we just explain to them very politely that we cannot lower prices since these rates are only for low seasons and no further reduction is possible.

Wish you all the best and please don’t forget to introduce yourself.

 

 

8 months ago