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Agoda have raised their commission rates

As there does not seem to be a discussion section on Agoda's partner hub, I shall vent here.

 

As the title says, Agoda who already have the highest commission rate at the basic setting, have decided the current climate of business is a great time to raise their commission rate.

Un-expletive-believable! 17% for our area was already bad but now up to 20%.

Quite scandalous, especially for an area that is still really struggling tourism wise, as a destination we remain way under 5% of normal levels. 

 

We have  closed all direct rooms to Agoda in protest and total disgust, they can only pull from BDC now.

The decision makers at Agoda need a bullet for sure, how can they think 20% of nothing is better than 17% of $$$$.

 

Total madness.

Anyone here who has a direct Agoda account should check out the commission rate setting.


5
Fluff (new account)

p.s.

Some may be thinking, why not just raise your prices to absorb  the raise.

Well, it's just not that simple. Most of the OTAs will price-match any other price their Bots find, therefore, no matter what rate we put on Agoda they will price match to the lowest they find on the web.

Keeping rate parity also becomes a joke, plus we dare not raise prices across the board in such a highly competitive market where only a couple of $s per night difference can change your fortunes.

We have always been at odds with Agoda and their "different" practices but enough is enough.

5
Fluff (new account)

A campaign, amongst the self-help property groups, is just getting started here to boycott Agoda.

Smaller businesses are particularly up in arms as the 20% commission rate seems to be aimed solely at us, with larger hotels etc. enjoying a lower rate, although even that is not the whole story with some small properties still on the 17% for unknown reasons but Agoda is in total denial.

 

Agoda claim many things in their own defense of their action, none of which hold water and none of which are across the board as they claim.

Agoda are predominantly Asia based so any loss in this region would hopefully hurt enough for them to take notice...