As the world’s largest online travel agency (OTA), Booking.com serves as a primary booking channel for countless hotels and accommodations. When it comes to payment, there are two main options for reservations made through Booking.com: payments can either be handled directly by the guest (after which you pay a commission to Booking.com) or processed through the platform itself.
Booking.com simplifies payment processing by offering a secure and reliable service, allowing guests to choose from various methods including credit cards, GooglePay, ApplePay, PayPal, and Buy Now Pay Later (BNPL) options. This service reduces administrative hassle for hotels, while providing flexible payment choices for guests.
Why Understanding Payment Options Matters for Hosts
Knowing your payment options on Booking.com helps you choose the one that best fits your business. Some hotels prefer the control of handling payments directly, while others value the simplicity of letting Booking.com take care of everything. The decision ultimately depends on your preferences and circumstances.
How Does Booking.com Charge for Payments?
When you opt to handle payments yourself, Booking.com charges a commission fee, typically between 15-25%, for each booking made through the platform. This commission is collected through a monthly invoice that you can pay via direct debit, bank transfer, or an online payment service provider (PSP).
If you choose to let Booking.com manage payments, the platform deducts the commission automatically and transfers the remaining balance to you.
Comprehensive Payment Options for Guests
Allowing Booking.com to handle payments opens up a wide range of payment methods for guests, which can help boost bookings, especially from international travelers. Here are the payment methods Booking.com accepts:
- PayPal: Guests can pay through PayPal, one of the earliest online payment options available.
- ApplePay: A popular digital wallet option for iOS users.
- GooglePay: Booking.com also supports this payment method for Android users.
- Local Payment Methods: Booking.com caters to regional needs with methods like iDeal, Trustly, Blik, Vipps, Venmo, and WeChat.
- Buy Now, Pay Later (BNPL): Klarna, Affirm, and other BNPL methods are accepted, varying by location.
- Credit Cards: All major credit cards are supported, ensuring a smooth booking experience.
Common Booking.com Payment Issues and Solutions
Although Booking.com’s payment system is generally reliable, issues may occasionally arise. Here are some common challenges and tips on how to resolve them:
- Delayed Payments: Payments can be scheduled daily, weekly, or monthly via the Booking.com Extranet. Delays are often due to banking processes, so check your Extranet for updates or contact support if needed.
- Payment Method Errors: If a guest experiences an error, it’s usually related to their bank, card, or PSP. Guests should contact Booking.com directly to resolve the issue.
- Cancellation Fees: Booking.com charges commission for all confirmed bookings, but if you refund a guest, you generally won’t be charged a commission.
- Chargebacks: When Booking.com handles your payments, they manage all chargeback issues, including covering refund costs.
By understanding these options and potential issues, you can choose the best approach for handling payments on Booking.com and ensure a smooth booking experience for both you and your guests.
Tools like PMS (Property Management System) and CM (Channel Manager) only assist lodging establishments in operating more simply, saving time, and being more efficient compared to not using them. However, that is not the root of growth or the challenges faced in the accommodation business. If you want to effectively manage OTA channels and create stable growth, you should have a clear understanding of how OTA platforms operate, such as their nature, operational models, and how they display, calculate displayed prices, and collect prices (after deducting commissions). Of course, larger hotels that want to approach it systematically will do it synchronously from the beginning, but smaller lodging establishments wanting to reduce operational costs should overlook it and focus on optimizing display and providing outstanding customer care.
Synthesized by: OTA Lyst
