Booking’s commissions for b&b or are Airbnb and Expedia better…?

What are Booking’s commissions for b&b? Perhaps it is easier to answer questions like Do aliens exist? or What is the most effective weight loss diet? But if you are reading this article you are probably more interested in knowing the costs to pay for the most important OTA in the travel & hospitality sector, rather than the rest.

To be useful (and given that there are still 5 months to go to the costume test) we have tried to clarify the commissions for bed & breakfasts applied by Booking, but also from Airbnb, Expedia and other operators on which you could agree to sell your cozy rooms.

Commissions or disintermediation?

Here is another question that is difficult to answer. There are supporters of total disintermediation, those who believe it is impossible to emancipate themselves from OTA and metasearch. Finally those for whom it is necessary to use a mix of sales channels, with more or less important investments depending on the type of structure and target:

  • telephone reservations
  • reservations by e-mail
  • booking engine on the site
  • OTA and metasearch
  • digital marketing

 

How to disintermediate from OTA thanks to a digital concierge app

 

Also, do not underestimate the opportunities offered by the latest technological innovations. For example, you can use our digital concierge app to reduce brokerage from OTA and metamotors. Because if you use Edgar Smart Concierge your guest can re-book your property directly from your personalized app, which connects it to the booking engine with one click.

In this way you immediately retain the satisfied customer who has just stayed in your bed & breakfast and who already knows that he must return. For example, it is a business customer who travels several times a year near you or a person who periodically has to visit family and friends. Have you ever wondered if you can really exploit this type of clientele? Discover the strategies to increase your b & b reservations thanks to:

Our technology doesn’t just help you disintermediate! In fact, Edgar is the app for bed & breakfasts, extra-hotel facilities and hotels that supports the host in customer assistance and in the management of the structure. Its cost is a subscription proportional to the number of rooms / apartments. The smaller your property is the less you pay, starting from 5 euros a month.

Furthermore, Edgar allows you to increase your earnings. It allows you to collect a commission every time your guest buys an external service on the personalized app. The commission ranges from 2% to 10% on the amount spent by the guest depending on the service purchased: for example car rental, private transfers, tours and experiences.

 

 

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Booking’s commissions for b&b

Commissions

The Booking percentage is a fixed commission of between 10% and 25% on the sale price of the stay, which varies according to the type of structure and location. For example, the Booking commission for a small bed & breakfast located in a not-so-famous seaside resort is around 15%.

It takes less than 15 minutes to calculate the commission. You must register for free on the portal, enter the details about your accommodation or non-hotel. At the end you will discover how much of your proceeds will end up in the pockets of the giant holding company born of a Dutch startup.

The commission is calculated on the total number of bookings of the previous month. To these you must subtract the missed reservations but not the non-refundable ones, regardless of whether the customer has stayed in your facility or not. The most famous OTA of the web applies the commission only to the host, unlike other online operators who share it between host and guest.

Terms of payment

The customer pays you directly or Booking can manage your payments. In the first case, at the beginning of each month you will receive an invoice with all the reservations of the previous month and the total commission to be paid with a single payment. Or it will be Booking to withdraw the commissions before accrediting you the sum paid by your guest.

pros and cons

The advantage of promoting your B&B on Booking is above all one: great online visibility. More or less all operators provide assistance and useful insights to learn more about your target. But Booking is the 1st OTA in the industry, present not only on Google but also Bing and Yahoo, with ads in 43 languages, 175,000 partner sites, tens of millions of monthly visitors. In contrast, to avoid surprises and at the end of the month, you need to know the mechanism of tariffs, cancellation policies, promotions.

Airbnb commissions for accommodation and experiences

Accommodation’s commissions

On Airbnb you can promote both your b & b, apartment, holiday home but also the experiences to do in your area to fill the guest’s stay with emotions. Airbnb accommodation fees are around 3%. Unfortunately the percentage tends to rise in Italy or if you apply very strict cancellation terms.

The Airbnb costs for the host are calculated on the booking subtotal:

(daily price + cleaning costs + eventual additional costs for the guest) – (Airbnb + tax costs, or VAT).

Airbnb, unlike Booking, also applies a commission to the guest. This cost is between 0% and 20% of the booking subtotal.

Experience’s commissions

Airbnb Experiences fees are only for the host and are 20%.

Terms of payment

Airbnb automatically deducts the service costs for the host, directly from the payment paid by the future guest.

pros and cons

The Airbnb commission is for small, non-professional accommodations. But the price increase for the end customer, even up to 20%, has a considerable impact on the price, reducing its competitiveness.

Commissions on Expedia

Commissions

The commissions on Expedia range between 10 and 30%, applicable only if the guests are actually staying in your facility. Registration for the portal is free and in the final contract you will find the exact amount of the commission to be paid to the OTA.

Terms of payment

Customers can pay at the hotel or at the time of booking. So depending on the option chosen, the OTA will credit you the amount you deserve or you will pay the commissions to Expedia, calculated based on the date of booking, or after the end of the stay or trip.

pros and cons

Like Booking, Expedia also guarantees wide visibility with over 675 million online visits, 75 countries reached, ads translated into 35 languages ​​and a network of dozens of partners. Expedia is also opening up more and more to the vacation rental sector, as its competitors are doing. In this regard, read also the words of Cyril Ranque, president of Expedia Group’s Lodging Partner Services.

Despite this, at least for now, Expedia remains more suited to hotels and agencies, to which it offers a special program (TAAP) that allows you to earn a commission, rather than pay it.

Commissions for HomeAway

Commissions

Immediately after Expedia, we want to tell you about a subsidiary, a direct competitor of Airbnb. HomeAway’s commission for hosts is around 8.5% and includes a 5% service charge plus a 3.5% credit card fee. Instead the commission for the guest is between 8% and 10%. Alternatively, you can choose ads with an annual subscription at a cost of around € 229.

Terms of payment

Property managers, holiday home owners and apartments receive the customer’s payment net of the commission.

pros and cons

Among the pros, there is certainly the global network, specializing in holiday homes. But as in the case of Expedia, also HomeAway is more suitable for complex clients such as real estate agencies and has not reached yet Airbnb in terms of visibility.

Tripadvisor’s costs

Commissions

Registration on TripAdvisor Rentals is free. For free ads, all bookings are made online on TripAdvisor and the owners pay a 3% transaction (plus VAT) per booking. 3% is applied to the total rent including mandatory and optional rates, such as cleaning service. Ditto for annual announcements, in the case of payments received through the portal.

Even TripAdvisor charges part of the commissions to the guest. Booking fees for travelers range from 8% to 16% and are automatically added to the rental cost.

Terms of payment

TripAdvisor will credit you with payments received by customers 24 hours after the start of the stay, or within 3/5 working days if you have chosen bank transfer as the transfer method.

pros and cons

TripAdvisor boasts a specialized network in the non-hotel sector, which includes Holiday Lettings, FlipKey, Niumba, HouseTrip and Vacation Home Rentals. It is also considered particularly reliable by travelers around the world, thanks to over 535 million reviews. The portal has 415 million unique visitors per month and reaches 190 countries. But as in the case of Airbnb, the booking fees charged to the user are high and inflate the price of your property.

Bed-and-breakfast.it costs

Commissions

The portal does not charge a booking fee. The cost for B&B owners and other non-hotel professionals is € 189.10 per year, including VAT.

Terms of payment

The customer pays directly to the structure. Currently bed-and-breakfast.it provides customers with a Virtual Pos, to allow you to request payment online quickly and securely via Stripe.

pros and cons

The portal hosts both bed & breakfasts and holiday homes. It is also Italian. As there is no commission, the owner retains 100% of what he earns and you can more easily manage the rates between the various sites. On the other hand, visibility is certainly lower than that which giants like Booking and Airbnb can guarantee.

 

We recommend that you read carefully the contracts that you will enter into with the OTAs, the metamotors and the other online intermediaries to check at best the additional costs, cancellation conditions and all the other multiple cases that may arise during a stay even of one single night. If you need more information about Edgar, just write a message in the chat at the bottom right of the page.

 

 

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Edgar Smart Concierge

Edagr Smart Concierge is a Guest Management platform. It enables Hosts to customized their own Concierge App to better assist Guests and increase revenues.

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