Hotel Bonanza is launching on June 27th. It's not a moment too soon because it's time for change. We will give everybody a fair deal by charging accommodation providers less commission and offering our members a discount on every booking.
What makes you choose one website over another? For many of us, it's price, but the reality is that there is very little variation.
The most popular online travel agents (OTAs) like Booking.com or Hotels.com charge properties at least 15% per booking, but this can be as high as 30%.
This has serious knock-on effects for us guests:
Properties are forced to raise their room prices because they're struggling to pay the commissions. The OTA is the only winner here.
Price competition is effectively banned by the OTAs because they have sneaky rate parity clauses that tell their properties they cannot sell cheaper on their own websites. This is to ensure that we book with them as much as possible.
The search results are probably not what we asked for because the properties at the top are paying more to be there.
At Hotel Bonanza, we are committed to offering everybody a fairer and cheaper alternative:
- We will charge properties just 8% commission per booking, and will give 5% of that commission back to you. We will do this by offering a membership that gives a 5% discount on every booking.
- We will not charge properties more to be featured prominently in the search results. We will use a fairer algorithm that is a combination of location and price. This means you get what you ask for and accommodation providers don't have to battle against each other for the top spot.
- We don't ask for rate parity. Properties can sell at whatever price they like on their own website or any other website. However, the likes of Booking.com and Hotels.com do ask for rate parity and unfortunately the majority of properties have to respect it, regardless of whether it's fair or not. For that reason, we will only show our discounted member prices when you are signed in.
- We will encourage properties to give our members further perks and discounts so you will get even more out of your stay and our properties will still make huge savings.
Accommodation providers are only too aware of how the online booking industry works, but their hands are tied. We want to give them an alternative. Most of us don't know the truth and we think it's about time you did.