How Much Commission Does Airbnb, Expedia and Booking Take?

As the popularity of online booking platforms grows, more and more people are turning to sites like Airbnb, Expedia, and Booking to book their travel accommodations.

But how much of the total cost of a booking do these platforms take as commission?

If you’re short on time, here’s a quick answer to your question: Airbnb takes a commission of 3% from hosts and a fee of up to 14.2% from guests, Expedia takes a commission of around 15-20%, and Booking takes a commission of between 10-25%.

In this article, we’ll take a closer look at the commission rates of each platform and how they impact both hosts and guests.

Airbnb Commission Rates

As an online marketplace, Airbnb charges both hosts and guests for using their platform. The company makes money by taking a commission from each booking made through their site. It’s important for both hosts and guests to understand the commission rates they will be charged when using Airbnb.

Host Commission Rates

Airbnb hosts are charged a commission fee on each booking they receive. The commission rate varies depending on the type of reservation, the location, and the host’s cancellation policy. Airbnb’s standard host commission rate is 3% of the booking subtotal, which excludes taxes and fees. However, hosts are also given the option to choose a higher commission rate in exchange for additional benefits, such as access to Airbnb’s professional photography services.

It’s important for hosts to factor in the commission fee when setting their nightly rate. For example, if a host sets their nightly rate at $100 and Airbnb’s commission rate is 3%, they will only receive $97 from each booking made through the site.

Guest Service Fees

In addition to the commission fee charged to hosts, Airbnb also charges guests a service fee for using their platform. The guest service fee is calculated based on the total cost of the reservation, including the nightly rate, cleaning fee, and any additional fees or taxes. The service fee is typically around 14% of the total cost of the reservation.

It’s important for guests to be aware of the service fee when booking accommodations on Airbnb. However, it’s worth noting that Airbnb’s service fee is often lower than the commission fees charged by traditional hotels and travel agencies.

It’s important for both hosts and guests to understand the commission rates and service fees charged by online travel platforms like Airbnb, Expedia, and Booking.com. By knowing what you’re paying for, you can make informed decisions when booking accommodations and ensure that you’re getting the best value for your money.

Expedia Commission Rates

Expedia is one of the largest online travel agencies (OTA) in the world, offering a wide range of booking options for flights, hotels, car rentals, and vacation packages. As an OTA, Expedia charges a commission fee to its partners for each booking made through their platform.

Standard Commission Rates

The standard commission rate for Expedia varies depending on the type of property and location. Generally, the commission rate ranges from 10% to 25% of the booking total.

For example, if you are a hotel owner in Paris and your nightly rate is $200, and a guest books through Expedia for a three-night stay, Expedia will charge a commission fee of 15% of the total booking cost. In this case, the commission fee would be $90 (15% of $600).

Preferred Partner Program

Expedia also offers a Preferred Partner Program for hotels and properties that meet certain criteria, such as offering competitive rates and availability, providing good customer service, and having positive guest reviews. The commission rate for Preferred Partners is typically lower than the standard commission rate.

According to Expedia, Preferred Partners can save up to 10% on commission fees. However, it’s important to note that there are additional requirements and fees associated with becoming a Preferred Partner.

Benefits of Using Expedia

Despite the commission fees charged by Expedia, there are many benefits to using the platform for hotels and other properties. Expedia has a large customer base and can help properties reach a wider audience, increase bookings, and improve their online visibility.

Additionally, Expedia offers a range of tools and services to help partners manage their bookings, track performance, and improve their online presence. These include analytics tools, marketing resources, and customer support services.

Comparison with Other OTAs

When compared to other online travel agencies like Airbnb and Booking.com, Expedia’s commission rates are generally similar. However, it’s important for properties to compare commission rates and other fees across different platforms to determine which OTA is the best fit for their business.

Booking Commission Rates

Booking.com is one of the most popular online travel agencies (OTAs) that allow travelers to book accommodations worldwide. However, it’s important to understand the commission rates that Booking.com takes from the hosts for every booking made through their platform.

Booking.com Commission Rates for Hosts

Booking.com charges a commission fee to the hosts for every booking made through their platform. The commission fee varies depending on the type of accommodation and the location of the property. On average, the commission rate ranges from 15% to 25% per booking.

For example, if you rent out a vacation home that costs $100 per night and you receive a booking through Booking.com, you will receive $75 to $85 per night after the commission fee is deducted.

Benefits of Using Booking.com

Despite the commission fee, many hosts still choose to list their properties on Booking.com because of its wide reach and popularity among travelers. Booking.com has over 28 million listings worldwide and attracts millions of travelers every month.

Booking.com also offers a range of tools and features to help hosts manage their listings, such as a channel manager, pricing tools, and guest communication tools. Additionally, Booking.com invests heavily in marketing and advertising to attract more travelers to their platform, which can help increase the visibility of your property.

Comparing Booking.com with Other OTAs

It’s important to note that Booking.com is not the only OTA that charges commission fees to hosts. Other popular OTAs such as Airbnb and Expedia also charge commission fees to hosts.

As you can see from the table above, Airbnb charges a lower commission rate compared to Booking.com and Expedia. However, it’s important to consider other factors such as the target audience, the type of accommodation, and the location of your property before deciding which OTA to use.

Factors that Affect Commission Rates

When it comes to listing your property on Airbnb, Expedia, or Booking, one of the most important things to consider is the commission rate. After all, this is the percentage of your rental income that the platform will take as their fee. While the commission rates vary depending on the platform, there are several factors that can affect how much you’ll end up paying.

Location

The location of your property can have a big impact on the commission rate you’ll pay. For example, if your property is located in a popular tourist destination, you may end up paying a higher commission rate than if your property is in a less desirable location. This is because platforms like Airbnb, Expedia, and Booking know that properties in popular destinations are in high demand, so they can charge a higher commission rate.

Property Type

The type of property you’re listing can also affect the commission rate. For example, if you’re listing a luxury villa with all the bells and whistles, you may end up paying a higher commission rate than if you’re listing a more modest apartment. This is because the platform knows that luxury properties can command higher rental rates, so they can charge a higher commission rate.

Length of Stay

The length of stay can also impact the commission rate you’ll pay. If you’re renting out your property for a longer period of time, you may be able to negotiate a lower commission rate with the platform. This is because the platform knows that longer stays are more stable and predictable, so they may be willing to lower their commission in order to secure your business.

Cancellation Policies

Your cancellation policy can also play a role in the commission rate you’ll pay. If you have a more flexible cancellation policy, you may end up paying a higher commission rate than if you have a stricter cancellation policy. This is because platforms like Airbnb, Expedia, and Booking know that more flexible cancellation policies are more attractive to renters, so they can charge a higher commission rate.

It’s important to keep in mind that commission rates can vary widely depending on the platform and the specific circumstances of your rental. To get a better sense of what commission rates you can expect to pay, it’s a good idea to do some research and compare the different platforms. You can also reach out to the platforms directly to negotiate a lower commission rate.

Impact of Commission Rates on Hosts

With the rise of home-sharing platforms like Airbnb, Expedia, and Booking, more and more people are opening up their homes to guests in exchange for extra income. However, hosts must also consider the commission rates charged by these platforms, as they can have a significant impact on their earnings.

Airbnb Commission Rates

Airbnb charges hosts a service fee of 3% for each booking, while guests pay a separate service fee of up to 14.2%. However, hosts can also choose to participate in Airbnb’s “host-only fee” program, which allows them to set their own service fee for guests. This can be a way for hosts to offset the commission rates charged by Airbnb and keep more of their earnings.

Expedia Commission Rates

Expedia charges hosts a commission rate of 15% for each booking, which is higher than Airbnb’s commission rate. However, Expedia offers hosts the option to participate in their “Partner Central” program, which allows hosts to set their own rates and receive additional benefits such as marketing tools and analytics.

Booking Commission Rates

Booking.com charges hosts a commission rate of 15-25% for each booking, depending on the property type and location. However, hosts can also choose to participate in Booking’s “Genius” program, which offers discounts to frequent bookers and can help hosts attract more guests.

Comparing Commission Rates

While commission rates vary between platforms, hosts should also consider the overall benefits and features offered by each platform. For example, Airbnb and Booking both offer extensive booking protection and customer support, while Expedia offers a more personalized approach with their Partner Central program.

Ultimately, hosts should carefully consider their options and choose the platform that best fits their needs and goals. By understanding commission rates and additional programs, hosts can maximize their earnings and provide a great experience for their guests.

Impact of Commission Rates on Guests

When booking accommodations through online travel agencies (OTAs) like Airbnb, Expedia, and Booking.com, guests may not realize that they are paying a commission fee on top of the actual rental costs. These fees can vary depending on the platform and the host’s pricing, but typically range from 5-15% of the total booking cost.

How Commission Rates Affect Guest Prices

Commission rates can have a direct impact on the prices guests pay for their accommodations. Hosts may increase their rental rates to offset the commission fee, ultimately resulting in higher prices for guests. In some cases, hosts may also be less willing to negotiate on rental rates due to the commission fee they have to pay to the OTA.

However, some hosts may offer lower rates for direct bookings through their own websites or social media channels, as they can avoid paying commission fees to OTAs. Guests can also search for alternative accommodations through other platforms or directly with hosts to potentially find lower rates.

Comparison of Commission Rates

As shown in the table above, commission rates can vary between different OTAs. It’s important for guests to be aware of these fees when comparing prices across platforms.

Conclusion

While commission fees may lead to higher prices for guests, they can also provide benefits such as access to a wider range of accommodations and added security measures. Guests should weigh the pros and cons of booking through an OTA and consider alternative options before making a final decision.

Alternatives to Online Booking Platforms

Online booking platforms such as Airbnb, Expedia, and Booking.com have revolutionized the way people book accommodations. However, these platforms come with a commission cost that can significantly impact both the hosts and guests. In this article, we will explore some alternatives to these online booking platforms.

Direct Booking

One of the most straightforward alternatives to online booking platforms is to book directly with the host or property management company. Direct booking allows guests to avoid paying commission fees, which can save them money. Hosts can also save money by not paying the commission fees charged by the online booking platforms. Additionally, direct booking allows hosts and guests to establish a personal connection, which can lead to better communication and a more enjoyable stay.

Using a Travel Agent

Another alternative to online booking platforms is to use a travel agent. Travel agents can provide personalized service and help guests find accommodations that suit their needs and preferences. They can also help guests save money by finding deals and discounts that may not be available online. Travel agents can also provide valuable advice and recommendations for things to do and see in the area.

Vacation Rental Management Companies

Vacation rental management companies can also provide an alternative to online booking platforms. These companies manage multiple properties and can provide guests with a range of options to choose from. They can also provide personalized service and help guests find accommodations that suit their needs and preferences. Vacation rental management companies can also handle the booking process, cleaning, and maintenance, which can be convenient for hosts who do not want to deal with these tasks themselves.

Overall, there are several alternatives to online booking platforms that can provide guests with a more personalized experience and help hosts save money. It’s worth exploring these alternatives to see what works best for your travel needs.

Conclusion

While online booking platforms like Airbnb, Expedia, and Booking offer convenience and ease of use, it’s important for both hosts and guests to be aware of the commission rates and fees associated with using these platforms.

By understanding the impact of commission rates on their bottom line, hosts can make more informed decisions about how to price and market their properties.

Likewise, by understanding the fees associated with booking through these platforms, guests can make more informed decisions about where to stay and how to save money on their travel accommodations.

Ultimately, whether you choose to book through an online platform or explore other options, it pays to do your research and stay informed about the costs and benefits of each option.