NAVIGATING THE ONLINE BOOKING PLATFORM MAZE: A Guide for Accommodation Owners
Welcome to the world of online booking platforms. It can be very daunting for the beginner! It is where the small print can be a maze of potential pitfalls for accommodation owners.
In this blog, we'll delve into the intricacies of Booking.com, one of the most popular platforms for property listings. However, many of the points listed will be relevant for all booking platforms. As an accommodation owner, understanding the fine print is crucial to maximising your profits and avoiding common traps that can adversely impact your business.
1. Commission Structures
Booking.com operates on a commission-based model, typically charging a percentage for each reservation. While this is a common practice in the industry, it's essential to carefully examine the commission structure. Be aware of any hidden fees or additional charges that may apply under certain circumstances.
2. Cancellation Policies
The devil is in the details when it comes to cancellation policies. Booking.com allows property owners to set their own policies, but it's crucial to strike a balance between flexibility for guests and protecting your revenue. Examine the implications of different cancellation policies and choose one that aligns with your business goals.
3. Guest Reviews and Ratings
Booking.com places a significant emphasis on guest reviews and ratings, which can directly impact your property's visibility. However, be cautious about potential manipulation and fake reviews. Ensure you are familiar with the platform's policies on reviews and address any issues promptly to maintain a positive online reputation.
4. Overbooking Risks
Managing inventory across multiple platforms can lead to the risk of overbooking. Booking.com has tools to synchronize calendars, but glitches can occur. Familiarise yourself with these tools and regularly update your availability to minimize the risk of double bookings. Invest in an online booking calendar that is based on real time.
5. Payment Processes
Understanding the payment process is crucial for accommodation owners. Be aware of the timeline for receiving payments and any associated fees. Some owners may find themselves waiting longer than expected for funds to be transferred, impacting cash flow.
6. Rate Parity and Best Price Guarantee
Booking.com enforces rate parity in many parts of the world. What this means is the prices you offer on their platform should be consistent with or lower than those on other channels. While this ensures fair competition, it's important to monitor and adjust prices accordingly. Falling afoul of rate parity rules can lead to penalties or removal from the platform.
However, in New Zealand, this clause has been amended. Accommodation providers can offer lower rates or tailor special deals for walk-ins, telephone bookings or loyalty members that are separate to the prices they advertise online.
To understand more about this clause in New Zealand, read the link below.
7. Unforeseen Policy Changes
Booking.com, like any platform, can introduce policy changes that may affect accommodation owners. Regularly check for updates and be prepared to adapt your business strategy accordingly. Failure to comply with new policies can result in penalties or even removal from the platform.
CONCLUSION
Navigating the intricacies of Booking.com as an accommodation owner requires a keen eye for detail and a proactive approach. By understanding the small print and being aware of potential traps, you can optimize your listing, protect your business, and provide a seamless experience for your guests. Stay informed, stay vigilant, and make the most of your presence on Booking.com.