Why have commission fees become a problem?
Travel agencies have been around for a very long time, and the majority of agents offer a valid contribution to the industry for the customer and accommodation businesses alike. But, while ‘offline’ travel agents charge around 8% commission for every booking they pass on, online travel booking companies are now charging almost double that, with further plans to take an even greater cut of hotel and accommodation industry earnings.
Up, Up and Away…
When first introduced, Booking.com, Expedia et al charged around 8% to 10%, then 12%. Today we are faced with a whopping commission fee of 15% + VAT for every booking made gaining millions of Pounds/Euro’s/Dollar’s in commission that a few years ago was not there.
These are challenging economic times. We must all consider our costs – and identify potential cut backs. We say the time has come to cut Commission Fees. If bricks-and-mortar agencies can survive on 8% commission despite their greater overheads, there is no reason why the cheaper-to-run online agencies can’t price match this rate – or perhaps even cut out commission altogether and offer a fixed fee instead!
We can all benefit from this one very simple change in the way we do business. A change that will achieve realistic savings which, in turn, will benefit the customer and local communities. How?
Do you want lower fees and a fairer deal for the accommodation sector: