Understanding Booking.com fees
Considering that every rentals website has a different fee structure, understanding how pricing works on each one can be a bit of a headache when it comes to renting out your vacation rental property. Booking.com fees are amongst the most complicated to understand. With variation in fees depending on location, cancellation policy and more, it can be a challenge to get your head around the different permutations of Booking.com fees.
If you’re looking to simplify your property management, listing your property on multiple sites via Your Rentals will help keep things simple by using straightforward pricing no matter what platform you connect to. With the super-easy to use listings builder, and the added advantage of expert feedback to allow you to gauge the quality of your listing, you’ll soon be advertised with a professional look on as many sites as you want with a simple pricing structure. Using the expert service of Your Rentals will take the confusion and difficulty of advertising your holiday rental property.
Of course, you might already be working with a channel directly. It is important to make an informed decision as to which rental sites you would like to work with, and which would be better connected via a channel manager. To accomplish this you should have a basic understanding of what the different sites will charge you for advertising your holiday property with them directly. Let’s look and see exactly how things work with Booking.com fees.
Commission based platform
For property hosts, Booking.com uses a commission based platform to charge fees. This basically means that the host pays a certain percentage of the reservation everytime a reservation is made through the Booking.com app or webpage.These percentages vary from anywhere between 10% and 20% depending on the location of your property.
The hotel base fee also stands at 15%, and this can also rise to a 18% commission charge, if the host prefers to use the member service that Booking.com recommend. As you can see, Booking.com fees can vary a lot depending on how you set up your account and what the guest chooses when they book, so if you do want to list with them directly you need to be quite thorough in your research.
To make sure you’re charged the right amount of commission, it’s important that all your reservations are correctly registered in the (somewhat fiddly) Booking.com extranet. You need to mark no-shows, modify dates and update prices yourself from their ‘Reservations’ tab. If you need to make any changes you’ve got a limited window in which to do this, and it has to be done through the extranet otherwise you might find you get slapped with a higher commission than you were expecting.
There are a few things to bear in mind if you choose to list with Booking.com. One of them, which is quite important, is how to set up your cancellation policy. Many property managers understandably prefer to offer non-refundable bookings. However, with Booking.com it’s worth knowing with these bookings that in the case that guests do not stay in your property for whatever reason – even if they simply change their minds – then you, as the host, will still be charged the commission rate as part of the Booking.com fees.
There is, however, a loophole at the time of writing. If you are unable to charge a no-show guest then you’re able to waive their fee when marking them as a no-show in the extranet. This means you won’t be accidentally charged commission on that booking.
After the coronavirus outbreak, many travellers are hesitant to book holiday rentals since the travel restrictions are very unstable. It is well known that the short-term rental industry is one of those that has suffered the most from the coronavirus effects. Although there is a way to save your bookings. The latest trends show that properties with flexible cancellation policies have a lot more chances to get bookings. If we look at the data, we can see that 80% of all new bookings had fully refundable cancellation policies.
There is more positive news to learn regarding the trends during the current and upcoming coronavirus situation. We explain everything about it in our Webinar hosted by industry experts who share insights about how to adapt when booking demand starts to pick up based on research.
Avoid reservation fees through Direct Booking
When listing your properties on Booking.com you expose your listings to a very large number of potential guests. Although there is the alternative of getting direct bookings through your business website, Facebook or over the phone. This allows property managers to receive direct bookings and dodge the fees from big platforms like Booking.com or Airbnb.
The process is very easy, you just need to install a plugin on your business website and guests will be able to book directly from your site, and it will be synchronised with Your.Rentals calendar with all the different platforms.
In case that your vacation rental business doesn’t have a website yet, Your.Rentals offer the option to create your own site where you can receive bookings and display all the information needed. You can find here more information about direct bookings or you can contact us for more information.
Keeping things under control
Unlike some of the other big online reservation services available, Booking.com is an agency model that is not used as a contracting party, which means you are responsible for controlling when your property is available and the rates you wish to charge your guests. If you’re juggling multiple listings on different accounts on different websites, this can soon get pretty complicated. However, as we have already highlighted earlier in this article, the best way to stay in control is to use a platform like Your.Rentals to connect to whichever major websites that you wish to advertise with on one simple-to-use platform. You won’t need to deal with the hassle of Booking.com fees either – you just pay one simple percentage whenever you receive a booking from any site so you always know how much you’ll earn.