Booking.com has been the only distribution channel where we have been showing Gross Revenue and then deducting commission invoices from property owner accounts. This causes some issues, as it is not clear to owners what revenue they can expect, and the charges against reservation income, come in the following month, so income and costs are not aligned.
We allocate a 23% allowance for Booking.com commission and credit card merchant fees. We therefore deduct 23% off the rate the guests pay, to pay Booking.com their commission (between 17.25% and 20.70% plus our banking merchant fees of 2.70%).
The majority of our Agents receive a maximum of 20% commission from us, so to account for the difference, we uplift the rates to Booking.com by 3% to ensure our Partners receive the same nett rate as if they had done via a different 3rd party Agency.
It’s important to note that Nox Rentals will receive no financial benefit from this change.