How to Reduce Commissions on Booking.com: Practical Strategies to Save

How much do you really pay at Booking.com?

Let's start with the basics: Booking.com withholds a percentage on every booking, which in Italy is usually around around 15 percent. But this figure can go up to 18% in large tourist cities, where competition is higher.

What does this commission include?

• It is calculated on the price of the room plus any additional services (breakfast, housekeeping, etc.).
• It does not apply on local taxes (such as the tourist tax), at least since 2023.
• VAT at 22% (on the commission, not on the total price) should be added to this percentage.

Let's take a concrete example: if a guest pays 100 euros for one night, Booking.com retains 15 euros commission, plus 3.30 euros VAT (22% of 15 euros). In total, then, you pay 18.30 euros for that reservation.

If you multiply this figure by all annual bookings, you quickly see why reducing Booking.com commissions can save you thousands annually.

Why aren't all committees the same?

Not all facilities pay the same rate. There are several factors that affect Booking.com commissions, and knowing them helps you understand where you can take action.

1. Geographic location makes a difference

   As anticipated in the previous paragraph, in more tourist cities, where demand is high and there are many hotels, Booking.com tends to charge higher fees. In Milan or Rome, for example, it can go up to the 18%, while in less-traveled areas it even goes down to the 10-12%.

2. The type of structure affects the percentage

   Traditional hotels often pay higher commissions than apartments or B&Bs. This is because Booking.com considers several factors, such as booking volume and the type of services offered.

3. Cancellation policies can be costly

   If a guest cancels the reservation and you don't collect the expected penalty, Booking.com may Still charge you the commission. To avoid this waste, it is essential to report correctly cancellations in the Extranet, especially in case of invalid credit cards or no-shows.

4. Participating in special programs can increase costs

   Some tools, such as the Visibility Booster or the Genius Program, improve the visibility of your facility, but often raise commissions. If you use them, do it strategically, only when it is really worth it.

Effective strategies to reduce commissions on Booking.com without losing bookings

Now that we've clarified how commissions work and what they depend on, it's time to get down to the practical side. Here are some proven strategies you can start implementing right away to cut costs without compromising your booking flow.

Targeting direct bookings: the queen strategy

Without a doubt, the most effective way to reduce dependence on Booking.com and cut commissions is to increase direct bookings. But how to convince customers to choose this path?

First, it is essential to have a professional website that is optimized for reservations. A simple page with pictures of rooms and a phone number is not enough. You should integrate a real-time booking system that is easy to use and reliable. There are several booking engines on the market, some specifically for small facilities, that you can link to your site with a small investment.

Don't forget to harness the power of remarketing. Many people visit your page on Booking.com but then leave the site without completing a reservation. With targeted ads on Facebook and Google, you can re-engage these potential customers and direct them to your direct channel. It's a strategy that requires a small initial investment but can pay off handsomely over time.

Carefully manage cancellations and no-shows

As mentioned earlier, cancellations can become a hidden cost if you don't handle them properly. Booking.com expects you to pay commission even on cancelled reservations unless you report specific exceptions. Here are some tricks that can save you a lot of money:

First, learn how to use the Booking.com extranet well. When a guest cancels and you are entitled to withhold the penalty, be sure to report it correctly in the system. The same goes for no-shows or when the credit card provided by the guest turns out to be invalid. These simple steps can save you commissions on reservations that later fail to materialize.

Booking.com also offers an automatic penalty collection service, which can be very useful in reducing the risk of lost revenue. By activating it, the platform will directly take care of charging cancellation penalties to guests, freeing you from this task and ensuring that they are applied correctly.

Using paid tools judiciously

Booking.com offers several tools to increase your property's visibility, such as the Visibility Booster or the Genius Program. These services can actually help you get more bookings, but beware: they often result in increased commissions.

The key is to use them strategically and purposefully. For example, you could activate the Visibility Booster only during off-season periods, when you really need to fill rooms. Or you could limit participation in the Genius Program to certain room types or specific price ranges.

Remember that the goal is not necessarily to eliminate these tools completely, but to balance their costs with the actual benefits they bring to your facility.

Improve organic positioning on the platform

Another way to reduce dependence on paid tools is to work on the organic positioning of your property within Booking.com. The more optimized and attractive your tab is, the higher it will appear in search results without needing to spend extra..

Positive reviews are another crucial factor for ranking.

Gently invite satisfied guests to leave a rating, perhaps offering a small incentive such as a free coffee at the bar or a late check-out for the next time they return.

The secret to reducing commissions on Booking.com? Integrated strategy

Investing in your website, direct bookings and a more personal relationship with guests will not only save you money on commissions, but also build a stronger, more recognizable brand. Guests who book directly tend to be more loyal and return more willingly, creating a virtuous cycle that ultimately reduces your dependence on any single platform.