Many hosts are looking for alternatives to Airbnb, but the fees charged by Booking.com are sometimes disincentive. However, if hosts want to remain competitive, they must educate themselves on how Booking.com operates.
Also, if you assume the site is solely for hotel rooms, you’re mistaken. House and apartment-style lodgings account for more than 40% of all nights booked on Booking.com. It has over 6 million listings, making it one of the largest online travel agencies in the world. Beginner hosts, as well as well-known companies, are now included on this platform.
Travelers love Booking.com as much as they do Expedia. Its website has over 100 million monthly visits! This implies that you’ll get a lot of attention if you can get beyond the more complicated pricing structure.
So, if you’re looking to offer your home on Booking.com, keep these tips in mind. Continue reading to learn how to make money with this OTA, from cancellation rules to credit card concerns.
What are the costs charged by Booking.com to hosts?
When hosts utilize Booking.com, they must pay a portion of each reservation’s commission to the platform. The costs charged by Booking.com might vary based on variables such as your cancellation policy and location.
What is the commission charged by Booking.com?
Booking.com is a commission-based business, so keep that in mind. It implies that hosts will be charged a certain amount anytime a booking is made via the site, which might vary from 10% to 25%. While commission rates vary, on average, they are about 15%.
Which technique for determining the Booking.com commission in my area is the most accurate?
You may use their commission calculator to figure out how much commission you’ll have to pay.
You may simply go to your Accommodation Agreement if you already have a listing on Booking.com and need further information regarding its pricing. More information regarding the commission you pay may be found here.
Alternatively, go to the Finance tab on the Booking.com Extranet to discover how much commission has been paid or is still owed. You may view all the information, including the commission, in your invoice by choosing your Reservation statements.
It’s also worth noting that the site will send you a monthly invoice for the unpaid commission. As a consequence, you must verify that you have enough money in your account to cover the commission cost. You’ll be prohibited if you don’t, which will cost you new reservations.
If a reservation is canceled, is there a fee?
You must pay a commission on confirmed and non-refundable reservations when:
- You charge guests for non-refundable or partly non-refundable no-shows and cancellations.
- Guests who cancel after the free cancellation time has passed are charged.
However, there are times when no charges are imposed, when you choose to ignore a non-refundable booking’s cancellation cost, for example.
- You note that a visitor did not show up, but you decide to waive the cancellation charge.
- Because you could not charge the visitor, you signal that the credit card is invalid.
Are there any hidden costs on Booking.com?
There are no hidden costs with Booking.com. Only the commission rate will be charged to hosts.
On Booking.com, how do hosts get paid?
Booking.com allows you to make and receive money using external payment systems, a significant distinction between Airbnb and Booking.com. Guests may pay hosts using various online payment options, including a conventional or virtual credit card, PayPal, AliPay, and others.
A large number of Booking.com hosts accept credit card payments. The approved payment method that a host chooses will determine how he or she is compensated. If you use this payment method, you’ll need to enter into the virtual credit card (VCC) system and charge the outstanding amount to the guest’s card.
Stripe may also be used by hosts to take payments on Booking.com. This is a terrific alternative for hosts currently using Lodgable to work smarter since they can link their Stripe accounts to Lodgable. They will get full or partial reimbursements and generate invoices for all of their bookings this way.
You may also take cash or bank transfers as an alternative. If you prefer that your visitors pay you with cash, just remind them of the payment arrangement ahead of time. If you want to accept bank transfers, you’ll need to fill out the Finance page with your bank account information.
Finally, hosts will be compensated on a weekly or monthly basis. However, some of these payment alternatives may not be accessible for your kind of lodging or location.
What is the difference between Booking.com and Airbnb?
Aside from costs, there are several additional ways in which Booking.com varies from Airbnb. The following are some of the most common questions to help you grasp the fundamental distinctions between these two platforms.
1. Is Booking.com or Airbnb more expensive?
Airbnb changed its price structure significantly towards the end of 2020. Depending on their region, most hosts will now be charged a host-only fee. In other words, these hosts will be required to pay the whole service charge, which amounts to around 15% of their rental revenue.
The split-fee system will still be available to Airbnb hosts who have most of their listings in Canada, the United States, Mexico, Argentina, Uruguay, the Bahamas, or Taiwan. The service cost is shared between the host and the guests under the split-fee model (you pay 3 percent commission as a host, and a guest pays around 14 percent of the booking subtotal).
While it may seem that using the split fee would save you money, with the appropriate pricing plan, Airbnb hosts earn, and visitors pay the same amount in total, regardless of the charge structure. The advantage of the host-only cost is that visitors can see your price since they just pay the nightly rate.
While the costs charged by Booking.com vary, on average, hosts must pay roughly 15%. Aside from the cost of their stay, the platform does not charge visitors any further fees. Given that hosts will have to deduct the same 15% from their net profits on Airbnb, no matter which pricing model is used, a listing on Booking.com will typically be just as costly.
2. How do the cancellation policies of Booking.com and Airbnb compare?
Airbnb provides hosts with a choice of three cancellation policies from which to choose. Only two cancellation policies are available on Booking.com: flexible and customized. You may also use various rules for different rooms, such as prepayment and deposit policies. All you have to do is go to the Booking.com Extranet and complete a few questions to specify your preferred policies.
Your visitors will only pay after being at your property if you choose the flexible arrangement. They may cancel without penalty before checking in as long as it is within your specified time limit. If you choose the customized policy, you may pick how much they will be charged if they cancel their reservation after a specified date.
If guests cancel, change their plans, or just do not show up, they will still be charged the entire amount. A non-refundable rate may also be put up. You can reduce cancellations and obtain payments for bookings if you use this method.
2.1 How can a non-refundable property be made more appealing to visitors?
It is preferable to have a more flexible cancellation policy in the present atmosphere. When travelers know they may cancel or reschedule their dates if their travel limitations change, they are more likely to reserve a property.
However, if you choose non-refundable pricing, you may provide incentives to encourage additional reservations for these properties. You may create many sorts of discounts and promotions on Booking.com. You may give a free night, a last-minute discount, an early-bird special, or a limited-time promotion in addition to a standard deal. The Extranet makes it simple to set up all of these transactions.
3. Airbnb compared. Booking.com: Book Immediately
When you use Booking.com, all reservations are made immediately. In other words, hosts do not have the option of approving or declining a booking request beforehand.
Instant Book is a feature that Airbnb allows hosts to switch on and off. Because visitors will not reserve your property automatically if you turn it off, you must first authorize a booking request.
4. How does Airbnb compare to Booking.com?
Some hosts prefer Airbnb over Booking.com, while others find Booking.com more successful. Ultimately, it is determined by the kind of property and its location.
You may offer your house on Airbnb and Booking.com to get more exposure and make more money since they are the two largest and most popular OTAs.
On Booking.com, how can I put up cleaning and damage deposit fees?
Booking.com makes setting up a cleaning charge and damage deposit more difficult than Airbnb. On the other hand, the platform provides greater freedom regarding these additional fees. Go to the Policies section of the Property tab to put them up. You’ll find the ability to add extra fees here.
How can I prevent problems with bogus payment cards on Booking.com?
Unfortunately, there is always the possibility that a visitor would use a fraudulent payment card while using Booking.com. It is highly advised that you charge a deposit to minimize the chances of experiencing fraudulent reservations. Alternatively, you may use a payment processor like Stripe to ensure that the credit card data given by the visitor are correct.
What can I do to reduce the chances of obtaining a double booking?
Due to customers’ ease with booking homes on Booking.com, duplicate bookings can be a serious issue. As a result, it’s critical that your available dates and pricing on Booking.com are up to date and correct. If a duplicate booking occurs, it will be your obligation to provide alternate accommodations and extra transportation expenses to your visitors. This might be pricey.
Fortunately, you can utilize a channel manager to minimize overbooking. With Lodgable, you can keep your booking calendar consistent across all of your channels with its powerful channel management. As a result, it’s advisable to go with channel management with a direct Booking.com connection.
Should I sign up for Genius Freebies?
Booking.com’s Genius Freebies program is a form of loyalty program for visitors. A visitor must have completed at least two stays within the last two years to be eligible for this program. The good news is that once a visitor qualifies for this program, they will be a member for life.
There are also many levels to the curriculum. A guest staying at level 1 will get a 10% discount on their hotel room. On selected choices, Level 2 gives a 15% discount and complimentary breakfast and/or a hotel upgrade. A visitor will move to Level 2 after completing five stays within two years.
You may also join the Genius program as a host. As a result, your item will have a Genius tag and be more visible. This will help you get more bookings and improve your ranking. According to Booking.com, hosts who have joined the program have witnessed a nearly 20% increase in reservations.