Laterooms responds to hotelier’s enquiries about unfair business practices

Thanks to those of you that have contacted Laterooms enquiring about their high commission rates and unfair practices. To keep our followers up to date, find below extracts of responses from Laterooms to one Perth hotelier’s inital requests for reduced commission and stopping PPC adverts followed by our interpretations.

Laterooms says:

“LateRooms works with over 1500 affiliate partners, most of which we commission share with at a rate above 5%, and as such a commission rate as low as 5% would make bookings via these channels commercially unviable.”

How fairer fees translates this:

At Laterooms we occasionally have to give 5% to affiliates but most of the time bookings come directly via Laterooms.com and we pocket all 15% which is great for us.

Laterooms says:

“LateRooms spends on your behalf a great deal of money promoting on the search engines and is very successful at doing this. Indeed we are the top placed in the natural search listings for Perth and the ability to reach such a premium spot on the search engine does come at a cost.”

How fairer fees translates this:

Laterooms spend money trying to get our listing of your hotel above your own so that people book via us and pay us 15%, we are top of the natural listings on Perth so we really clean up here when someone searches for hotels in Perth and it cost all you guys a fortune in commission making us happy.

Laterooms says:

“Finally we recently went live with a national advertising campaign at considerable cost including TV advertising, the result of which has been an exceptional upsurge in customers coming directly to our website

How fairer fees translates this:

We are spending hundreds of thousands of pounds to try and get the public to book via us and make us yet more money, taking it away from the local communities. We know people are going to stay in Perth anyway we just try to get them to think of us when doing this so we can make more 15% commissions.

Published on May 11th, 2010 Uncategorized  |  2 Comments

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2 Responses to “Laterooms responds to hotelier’s enquiries about unfair business practices”

  1. anonymous says:

    LateRooms offer really poor support for their affiliates….direct traffic is what they obviously prefer so they retain all of the 15% commission. Why would they offer help & advise to their affiliates to improve the conversion & content of their sites? Simple. they don’t

  2. anonymous says:

    According to accounts filed at Companies House then Late Rooms made a GBP 9.2 Million net profit of a GPB 23.0 sale. This is a whopping 38%!!!! All of this is taken by TUI, the German parent company, which posted a GBP 417 Million loss today.

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