{"id":22492,"date":"2020-04-08T08:18:54","date_gmt":"2020-04-08T08:18:54","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/commission\/"},"modified":"2024-12-23T09:22:08","modified_gmt":"2024-12-23T09:22:08","slug":"commission","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/commission","title":{"rendered":"Commission"},"content":{"rendered":"

What is the meaning \/ definition of Commission in the hospitality industry<\/a>?<\/p>\n

Commission is a charge that a hotel<\/a> pays to third parties (travel agents, OTAs<\/a>) for selling their hotel rooms. It is usually a fix percentage of the room rate.
\nThe commission ranges from 10% to 30% depending of the OTA (how influential it is), on the size of the hotel and also on the popularity of the destination.
\nLarge hotel chains usually have more negotiation power.<\/p>\n

The most common commission is 15%. It is also the average commission Bookings.com charges the hotels. In certain locations where the market is stronger, they have introduced a \u2018preferred property\u2019 scheme with a higher % for more exposure \/ a spot in the top 10 properties for that location.<\/p>\n

Booking.com also works with a performance model, so that you pay higher comissions as a hotelier more visibility you get.<\/p>\n

See also:<\/strong><\/p>\n