How does Expedia charge commission to your hotel?
December 2, 2019|Hotel Marketing
Listing your hotel on Expedia or other similar OTAs truly drives your business and gives you a leg up on your competition.
If you are considering listing your hotel on any of these platforms, or if you are already listed on one, you might be wondering how they are charging a commission to your hotel.
For example, if your rate is at $100 a night, but the reservation from Expedia on your property management system shows a rate of $70 a night, does it mean that Expedia is selling your room at a much lower rate than what you are offering on your own website? No, it does not.
When Expedia or other similar OTAs send a reservation to your property management system, they commonly subtract beforehand the commission amount from your nightly rate, so that if the rate on your own website is at $100 a night, and the rate on the reservation is only $70 a night, a 30% commission rate was already subtracted. You will receive a virtual credit card which would pay the exact amount you should be getting.
Thus, if you compare the rates for specific dates on your brand website and on the Expedia website, they are the same if you set them up that way.
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