Industry insights
How do Booking.com fees work for vacation rental hosts?
5 Feb 2025
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By Sophie Eminson
For vacation rental hosts and property managers, listing your property on Booking.com can be a game-changer for reaching a global audience. However, understanding the fee structure is essential to ensure profitability and avoid surprises when working with the platform. This guide breaks down how Booking.com fees work, what they mean for your business, and how you can manage them effectively. Whether you're a seasoned or new vacation rental host, this post has everything you need to know.
How Booking.com Fees Work
Booking.com uses a commission-based model, which means you pay a percentage of each booking you receive through their platform. Simply put, you set the price for your property, and the platform takes a commission from the total amount when a guest books.
What is the Commission Percentage?
The commission rate typically ranges between 10% and 25% depending on factors like:
Your property's location: Local legislation may impact the rates.
The type of property: Different accommodation types might have varying rates.
Negotiated deals for specific circumstances.
On average, most vacation rental hosts pay a commission of 15%, which is comparable to competitors like Airbnb. However, understanding how this percentage applies to your bookings is key to managing costs effectively.
For example, imagine a guest books your property for £100. If the commission is 15%, you’ll pay £15 to Booking.com.
When Do Hosts Pay Fees?
Booking.com fees are charged after each booking is completed. This includes a variety of scenarios:
A guest books and completes their stay.
The guest cancels after the free cancellation period (if applicable).
You charge the guest for a non-refundable booking, whether or not they stay.
What About No-Shows?
Booking.com commissions are applied differently in no-show scenarios:
If a guest booked a non-refundable stay and you charge them despite their absence, commission still applies.
If a guest fails to show for a refundable booking and you're not charging them, then no commission will be charged.
Staying on top of your cancellation and no-show policies is critical to ensure you’re not incurring unexpected fees.
What Happens with Overbookings?
If an overbooking occurs, Booking.com may charge a fee and could also require you to relocate the guest to an alternative accommodation. Avoiding overbookings is crucial—check out our guide on preventing overbookings and streamlining your listing management.
Can You Avoid Booking.com Fees?
While Booking.com commissions are largely unavoidable, there are specific scenarios where fees might not apply:
Waived cancellations for non-refundable bookings.
If you flag a guest’s credit card as invalid and don’t charge them.
If you report a guest as a no-show and decide not to charge any cancellation fees.
Additionally, while direct bookings through your own website (using a channel manager like Travelnest) can circumvent platform fees, it’s worth noting that the increased exposure and visibility on Booking.com often outweigh the commission costs.
How Booking.com Empowers Hosts
Despite the fees, it's essential to recognise the value Booking.com provides. Their platform connects you to millions of travellers worldwide, complete with robust marketing tools, verified guest reviews, and top-notch customer support.
Furthermore, Booking.com allows you to customise policies for your property, ensuring you remain in control of your business.
Some advantages include:
Effortless promotion: Achieve global reach without additional advertising costs.
Streamlined booking process: Secure reservations with ease.
Enhanced trust: Guests see verified reviews and ratings, boosting confidence in your property.
Simplify Your Hosting Journey
Understanding Booking.com’s fee structure is essential for running a profitable vacation rental business. By factoring in fees when setting your prices and leveraging additional tools offered by Booking.com, you can ensure your listing thrives on one of the most popular travel platforms.
Want to simplify property management across multiple platforms? Travelnest helps property owners make the most of their vacation rentals by listing their properties on 30+ major websites, including Booking.com.
