Yeah, new Booking.com income strategy...

Last week, the small world of French hospitality was the scene of a truly extraordinary earthquake: Booking.com decided to charge its commission on the crumbs that represent no-shows and cancellations, and only when the hotel has indeed cashed. As nearly said Corneille in Le Cid “N’avons-nous donc tant vécu que pour cette infamie ? ”

Crumbs, really?

Let’s be serious: the vast majority of the hotel’s revenue is made up of real turnover, no cancellation fees.

If a hotel is doing more business on these “crumbs” than on its regular business, then there is a real problem. Unless its manager happily bills the rooms he has relet … #chuuut

In practice

Some hotels routinely charge late no-shows and cancellations. Others act with the necessary humanity.

Finally, a minority of hoteliers have an optimistic view of the world around them and do not charge for them or few, unless they are better organized and therefore more able to eliminate many.

Not possible ? You JUST need to engage the conversation with your customers! Still, it must be done in the right way and especially at the right time.

Has a service been delivered?

Euh… no. In fact, the hotel that has not delivered a service to the customer cannot bill as such.

Instead, he cashes an amount equal to the room reservation, which is intended to cover the loss of turnover: this is a compensatory indemnity accounted as exceptional profit, ie this is not turnover, and therefore no VAT applies.

Is Booking.com doing right?

Booking.com has rendered a service to the hotel and on a common sense, Booking.com’s service deserves to be paid as soon as the hotel receives a sum covering part or all of the reservation.

If a hotel does not agree with this principle, does this mean that a guest can “forget” to pay for his room? Oh yes but no it’s not the same. #dowahtIsaynotwhatIdo

One could argue that Booking.com decides alone, but which legitimate reason could prevent Booking.com from doing so?

Read rest of the article at HospitalityNet