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Booking Commission, How to reduce it?

booking commission
17 czerwca 2020

Many hoteliers use a strategy based on having a presence in a Booking Portal. Certainly, many types of accommodation facilities are found on a Booking Portal. One can get the impression that the presence there is an obligation. Sure, there is nothing wrong with that. However, you have a problem when the fee for the Booking Portal starts to grow dangerously high. In addition, your hotel might still have a position that is not satisfactory. Hotels competitively increase the money that they pay to the Booking Portal. You have to match them or risk losing your listing position and consequently hotel guests. What is the solution to this?


Booking Commission, what is it like?

Let’s just say it frankly; to achieve a higher position, hoteliers often pay a higher commission to the Booking Portal. Speaking with the hoteliers myself, I have come across a situation where the fee reached 20%, 30% or even 50%! This is a pretty dangerous situation.

Why? When you calculate yourself what percentage of profits you missed out on during your entire presence on the Booking Portal, then the amounts start to stimulate your imagination. As you can see, just knowing how to add a hotel to the Booking Portal is not enough.

The easiest way to improve your position in the Booking Portal search engine is to increase the payment. But who wants to pay more? This is not what you intended. Of course, at first glance, it’s not a bad solution. In the end, you will be higher in the listing, and this will ensure a lot of reservations.

However, it must also be remembered that the direct profit for the hotel will be lower. Some will say: “Okay, it’s low, but I still have a lot of guests, and the profits are ok despite the commission, so what are they talking about?” But what if I tell you that you do not have to pay more to the Booking Portal to be higher in the search results?

Quite the opposite, the commission for a Booking may be lower!


Not everything depends solely on Booking Portal

Hoteliers often feel that just being on the Booking Portal is enough to start earning money. If t happens the other way round, it is because the OTA portal has it in for them. If, on the ot her hand, another hotel occupies a higherposition this is because it pays a higher commission, and probably in most cases it looks like that.

The hotel facility, after all, chooses what commission they want to pay, ofcourse above the set minimum. OTA, in turn, tells you what payment the hotelier should pay to be on the given search page. Every now and then, the reservations portal offers to increase the fee in exchange for certain benefits . Hoteliers of ten do not see the flaws of their offer.

It is much easier for them to pay a higher commi ssion and have a guarantee of being on the higher page. However , this is not the only way and it does not have to be like that. What can you do?


Presentation of the hotel, image on the OTA

Just setting up an account on the portal and adding your hotel there is not enough now. It is important that the materials and content added there are of adequate quality. If you want to describe your hotel, pay attention to all the details and the compatibility of the descriptions with the actual conditions.

It is not difficult, but when browsing facilities on a Booking Portal, then you can see that many of them have a problem with their presentation, or do not pay much attention to it. The descriptions should be true, but at the same time as interesting as possible. Of course, ultimately, the Booking Portal edits what you want to enter, but you can negotiate if you really care about it.

Remember, they get a commission from you, so you have the right to demand certain things. You can say the same about displaying more rooms on the OTA portal. Yes, it also promotes your facility because OTAs look favourably at hotels that provide them with a greater number of rooms. Remember not to overdo it. You do not want a situation where you only sell through OTA’s, do you?

So even if you intend to make additional accommodation available on the Booking Portal, give the guests an incentive to make a reservation directly with you in your facility, omitting intermediaries.


The world will learn, what they say about you.

Hotel business is definitely not the one in which the principle prevails: “No matter what they say, it is important that they speak.” Online Travel Agency (OTA) portals are no exception. This is the place where guest reviews play a key role, because it is on their review that the given OTA generates the average rating of your facility.

Therefore, take care that the opinions written by your guests are positive and contain the highest ratings. The frequency and form of all your responses will significantly affect this. Since you create the image of the hotel on the Online Travel Agency, do it effectively.

Obviously, what counts is the highest standard of services offered by the hotel. A satisfied guest means a positive opinion. But only if you skilfully encourage them to provide it. Managers of hotel facilities often think that if everything went according to the contract, then it is enough to give a positive opinion.

Unfortunately, today, without encouragement, guests will forget to leave a review. Besides, it’s much easier to write a negative review rather than a positive opinion about someone, isn’t it? The most important thing is to balance your offer; firstly, the number of available rooms, and secondly, all those things that can entice the guest.

I mean the possibility of a free cancellation of the reservation or no requirements as to providing credit card details. This will positively affect the purchasing decisions of potential guests. Effective use of all of the possibilities offered by the Booking Portal can significantly affect the effectiveness of the hotel’s offer.


Lower commission – the Booking Portal will not help. Take care yourself of the pictures and descriptions.

Here, hoteliers make a lot of mistakes. Pay attention to what you show in the pictures on the Booking Portal and whether it presents the right quality and impression. Simply, check if it shows the hotel from the best aspect.

What about the competition?

You want to be better than them and be higher in the Accommodation Search Engine Results. So pay more attention to what you want to offer your guests. See what and how your competitors show on their web pages, and then show it on your website in more detail and with a better impression.

The majority of potential customers buy with their eyes and tend to pay a larger amount if something simply makes the impression of being more attractive. So, do everything to make the guests feel the same about your hotel after seeing the photos.

Stand in their shoes and think whether you would choose your hotel or a competitor when selecting accommodation. As regards the descriptions, the more details, the better. First of all, for guests. Secondly, for the position on the booking portal.

The more precisely described the amenities and the surroundings of the facility, then the better for you. The description should be as attractive as the photos, and certainly it should be of comparable quality. There are so many places where you can find accommodation, so details are the key to everything.

Some of these things may seem insignificant to you. However, I can assure you, that from the customer’s perspective, i.e. your potential guest, then there is no such thing as unimportant details. Speak the language of benefits to your potential guests.

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