Agoda charges 51-80 % commission

[Captain Monday]

On 12/30/2023 at 2:56 PM, itsari said:

To find people to book your accomodation and make business. 

Still confused ?

Yes, but I can understand an appeal to the ”debit card” milieu.

The same dullards who purchase air tickets from third party sites and agents

[South]

Having had a couple of resorts and dealing with all the booking companies, most of whom seem to be part of just one group. 18% commission is / was the base rate. To get higher on their pages you, the hotelier could increase the amount of commission you paid. A lot of the big 4/5* places pay commission believe it or not of up to 50%

[arick]

On 12/30/2023 at 10:48 AM, itsari said:

Commissions charged are to owners / Hosts are nothing to ask about as Agoda are open with what they charge .

I avoid using Agoda as they are slow to pay out money owing . Airbnb send payment within 24 hours of the guest arrival . . Agoda pay out at least a week and often longer after the guest has checked out .

Airbnb are a better company to deal with regarding all aspects of hosting guests in my opinion . 

That said the price that Airbnb is charging for there service to the guests has increased considerably the last 18 months .

Yet we still have a good occupancy rate thanks to Airbnb .

Yes Agoda is 50% commission if your signed up to their AGX programme.  They are taking 7 days to pay out. I have received over 12 emails relating to just one room.  I gave to say booking.com is the smoothiest.  How we their verification process is a pain   but much better now for customers. They had hundreds of fake properties. Booking.com went down hill since their dutch owner sold it seems like it getting better.  

[Bassosa]

Every hotel owner/operator should make efforts to become less dependent on the thugs at Booking and Agoda. Unbelievably how disrespectful and scummy they are. Treat their "partners" like cattle. I have some stories....

 

Us hotel owners also need to play ball and offer a seamless booking experience on our own websites. We should offer lower direct rates as well but for some bizarre reason Thai hotel operators rather pay hefty commissions to these goons and be treated like dirt instead of setting up direct booking/payment and train their staff in using it. Is it laziness?

 

BTW Not surprised the consumers also get treated like crap. The rot must have really set in.

Edited January 5 by Bassosa

[CartagenaWarlock]

On 12/27/2023 at 5:54 PM, flyingtlger said:

Get the rates from Agoda then call the hotel directly or go directly to the hotel website. Often times you'll get a better rate.

My experience is the opposite. Direct hotel site rates are exorbitant compared to agoda, booking, hotels, etc. 

[Gekko888]

Agoda we have to remember is run by foreign owners they are charging predatory commissions even Thai people complaign about this. The best is to negotiate directly with the owner... I am living in Chiang Mai from time to time. Can help if anyone need help cheers ! 

[Gekko888]

On 1/5/2024 at 6:01 AM, South said:

the big 4/5* places pay commission believe it or not of up to 50%

Why people can not book directly when they call you? Would you give better prices for myself for example when I would like to book directly from you? 

[pomchop]

On 1/5/2024 at 5:05 PM, Bassosa said:

Every hotel owner/operator should make efforts to become less dependent on the thugs at Booking and Agoda. Unbelievably how disrespectful and scummy they are. Treat their "partners" like cattle. I have some stories....

 

Us hotel owners also need to play ball and offer a seamless booking experience on our own websites. We should offer lower direct rates as well but for some bizarre reason Thai hotel operators rather pay hefty commissions to these goons and be treated like dirt instead of setting up direct booking/payment and train their staff in using it. Is it laziness?

 

BTW Not surprised the consumers also get treated like crap. The rot must have really set in.

The big fees that agoda and the like charge could more accurately be described as "marketing fees"...the massive advantage they have is a lot of eyeballs on their platforms.  (in addition to a good res system that provides small hotels with accurate reports/accounting/ etc)  A small Thai hotel likely has close to zero in marketing expertise and very little if any marketing dollars.  So they list with the big boys and the number of eyeballs and possible bookings goes up exponentially.  Many of the smaller hotels barely have a website much less an online booking engine.

 

As for what hotels should do, Hilton Hotels no less has been trying for years to get customers to book direct with them rather than go through the big OTCs as Hilton was tired of being subject to the OTC demands...even with Hiltons very well known brand and marketing bucks and expertise  it is still a struggle as consumers  like to go to a site that offers multiple brands and quick easy comparison as well as booking.

 

Of course any hotel is free to not participate with the big OTCs and set their own rates and go it alone.  But for most that is really not a very good option so they pay the exorbitant fees as they have calculated it will ultimately bring them more business and profit than trying to do it themselves.  Sadly the big OTCs have become "bullies" and can literally drop a hotel down so far in the listings that nobody is likely to even see them or drop them completely if they dare not play by the OTC rules.

 

Remember the big OTC own not a single hotel room, airline seat, rental car as they have figured out how to let other people deal with the massive $$ required to actually operate the hotel, airlines, etc.  They instead became marketing companies and love em or hate em it has been hugely profitable for the expedias, agodas, booking.com bunch.

[Yellowtail]

6 minutes ago, pomchop said:

The big fees that agoda and the like charge could more accurately be described as "marketing fees"...the massive advantage they have is a lot of eyeballs on their platforms.  (in addition to a good res system that provides small hotels with accurate reports/accounting/ etc)  A small Thai hotel likely has close to zero in marketing expertise and very little if any marketing dollars.  So they list with the big boys and the number of eyeballs and possible bookings goes up exponentially.  Many of the smaller hotels barely have a website much less an online booking engine.

 

As for what hotels should do, Hilton Hotels no less has been trying for years to get customers to book direct with them rather than go through the big OTCs as Hilton was tired of being subject to the OTC demands...even with Hiltons very well known brand and marketing bucks and expertise  it is still a struggle as consumers  like to go to a site that offers multiple brands and quick easy comparison as well as booking.

 

Of course any hotel is free to not participate with the big OTCs and set their own rates and go it alone.  But for most that is really not a very good option so they pay the exorbitant fees as they have calculated it will ultimately bring them more business and profit than trying to do it themselves.  Sadly the big OTCs have become "bullies" and can literally drop a hotel down so far in the listings that nobody is likely to even see them or drop them completely if they dare not play by the OTC rules.

 

Remember the big OTC own not a single hotel room, airline seat, rental car as they have figured out how to let other people deal with the massive $$ required to actually operate the hotel, airlines, etc.  They instead became marketing companies and love em or hate em it has been hugely profitable for the expedias, agodas, booking.com bunch.

 

So Agoda and the like getting rich on the backs of small hotel owners, good. 

 

And Starbucks getting rich selling coffee to people that like it, bad. 

 

Got it. 

[Bassosa]

5 hours ago, pomchop said:

The big fees that agoda and the like charge could more accurately be described as "marketing fees"...the massive advantage they have is a lot of eyeballs on their platforms.  (in addition to a good res system that provides small hotels with accurate reports/accounting/ etc)  A small Thai hotel likely has close to zero in marketing expertise and very little if any marketing dollars.  So they list with the big boys and the number of eyeballs and possible bookings goes up exponentially.  Many of the smaller hotels barely have a website much less an online booking engine.

 

As for what hotels should do, Hilton Hotels no less has been trying for years to get customers to book direct with them rather than go through the big OTCs as Hilton was tired of being subject to the OTC demands...even with Hiltons very well known brand and marketing bucks and expertise  it is still a struggle as consumers  like to go to a site that offers multiple brands and quick easy comparison as well as booking.

 

Of course any hotel is free to not participate with the big OTCs and set their own rates and go it alone.  But for most that is really not a very good option so they pay the exorbitant fees as they have calculated it will ultimately bring them more business and profit than trying to do it themselves.  Sadly the big OTCs have become "bullies" and can literally drop a hotel down so far in the listings that nobody is likely to even see them or drop them completely if they dare not play by the OTC rules.

 

Remember the big OTC own not a single hotel room, airline seat, rental car as they have figured out how to let other people deal with the massive $$ required to actually operate the hotel, airlines, etc.  They instead became marketing companies and love em or hate em it has been hugely profitable for the expedias, agodas, booking.com bunch.

At my hotel direct bookings now account for 35% of all revenue. Used to be 0%. Airbnb is also becoming more important. A hefty 15% commission but they at least respect you as a host.

I agree that the small mom & pop hotels and guesthouses have zero marketing knowledge but it would be good to at least see some intent to start accepting their own bookings. It's not that hard tbh. I've offered my services to other Thai hotel operators (friends of my partner) and no one was interested.

In the meantime I guess we'll just let Booking & Agoda bully us into submission.
 

Edited January 8 by Bassosa

[pomchop]

Seems to me that agoda and booking bullies have established themselves so strongly with lots and lots of hotels worldwide that it will take some major force to replace them.  If you look at the profits they have made they certainly are doing something right.

I don't especially like the bully tactics which i suspect will only get more and more powerful but i really do not see anything on the horizon that would replace them.  The horse has left the barn so to speak.

 

Does agoda threaten to remove you if you confirm direct bookings at lower rates? I believe that was one of the bully tactics used before....that and other things like dropping your listing to the bottom of the last page etc?

 

I have stayed at many hotels in thailand and asia...booking via bully...go to front desk to extend my stay and might think the hotel would be happy about a direct booking but tell me oh no go to agoda to extend which seems weird as i am standing at the front desk ready to book and pay direct and save the hotel a commission...but told no can do.  Makes no sense so i think likely they fear some repercussion from the bullies?

[Bassosa]

On 1/9/2024 at 1:05 PM, pomchop said:

Seems to me that agoda and booking bullies have established themselves so strongly with lots and lots of hotels worldwide that it will take some major force to replace them.  If you look at the profits they have made they certainly are doing something right.

I don't especially like the bully tactics which i suspect will only get more and more powerful but i really do not see anything on the horizon that would replace them.  The horse has left the barn so to speak.

 

Does agoda threaten to remove you if you confirm direct bookings at lower rates? I believe that was one of the bully tactics used before....that and other things like dropping your listing to the bottom of the last page etc?

 

I have stayed at many hotels in thailand and asia...booking via bully...go to front desk to extend my stay and might think the hotel would be happy about a direct booking but tell me oh no go to agoda to extend which seems weird as i am standing at the front desk ready to book and pay direct and save the hotel a commission...but told no can do.  Makes no sense so i think likely they fear some repercussion from the bullies?

Airbnb is taking market share from Booking/Agoda in Thailand. They're great to work with and we especially like the fact that we get to review our guests as well. Another plus is that Airbnb isn't widely used by sexpats so you don't get those types in your hotel.

Edited January 10 by Bassosa

[greeneking]

On 1/9/2024 at 1:05 PM, pomchop said:

Seems to me that agoda and booking bullies have established themselves so strongly with lots and lots of hotels worldwide that it will take some major force to replace them.  If you look at the profits they have made they certainly are doing something right.

I don't especially like the bully tactics which i suspect will only get more and more powerful but i really do not see anything on the horizon that would replace them.  The horse has left the barn so to speak.

 

Does agoda threaten to remove you if you confirm direct bookings at lower rates? I believe that was one of the bully tactics used before....that and other things like dropping your listing to the bottom of the last page etc?

 

I have stayed at many hotels in thailand and asia...booking via bully...go to front desk to extend my stay and might think the hotel would be happy about a direct booking but tell me oh no go to agoda to extend which seems weird as i am standing at the front desk ready to book and pay direct and save the hotel a commission...but told no can do.  Makes no sense so i think likely they fear some repercussion from the bullies?

I have heard this too.  The hotel can not give you  room at the Agoda/ Booking.com price or they will have problems.  If they all recognised they could sell at the desk or by phone and save about 20% for themselves things might change.

Instead they try to charge extra.  Often quite a lot.

[jts-khorat]

On 12/31/2023 at 4:26 AM, HuaHinNew said:

Where there is a problem, there is always an opportunity.

 

With all the cloud computing services available today and excellent software like WordPress and great plugins add-ons and many associated plugins being free.

 

A smart hotel consortium group could establish a corporate company, employ a software development team that could run up a new global scalable site, e.g "Hotels Genuine"

 

Exactly what we did in 1998, as the internet was still young in Thailand -- Phuket had only 2000 landline phones then, the big Thai hotel owners never had heard of or seen a website.

 

It worked a charm until the big guys you mention came to Thailand and it was impossible to compete.

 

But the wheel of time might really bring us back to the beginning...

[ChipButty]

On 1/8/2024 at 4:56 PM, Bassosa said:

At my hotel direct bookings now account for 35% of all revenue. Used to be 0%. Airbnb is also becoming more important. A hefty 15% commission but they at least respect you as a host.

I agree that the small mom & pop hotels and guesthouses have zero marketing knowledge but it would be good to at least see some intent to start accepting their own bookings. It's not that hard tbh. I've offered my services to other Thai hotel operators (friends of my partner) and no one was interested.

In the meantime I guess we'll just let Booking & Agoda bully us into submission.
 

In your case with Airbnb you are paying all the commission your guest pays nothing, maybe the people you were trying to help are only paying 3% to airbnb as a host, I think a small guest house setting up a web site and be able to accept online payments, is not worth it they would rather just pay the 3%. On top of that marketing their DBS, to much like hard work to some 

[arick]

I unclicked something now Agoda has charged only 10% on tomorrow booking   personally I don't know what the hell they're doing how can it be 50% for the last month and then all of a sudden tomorrow it's only 10% commission. 

[Bassosa]

On 1/11/2024 at 5:16 AM, ChipButty said:

In your case with Airbnb you are paying all the commission your guest pays nothing, maybe the people you were trying to help are only paying 3% to airbnb as a host, I think a small guest house setting up a web site and be able to accept online payments, is not worth it they would rather just pay the 3%. On top of that marketing their DBS, to much like hard work to some 

That 3% commission is a bit misleading because in the end Airbnb gets its 15% regardless. Just means your guests are footing the other 12%.

I doubt that the people I was trying to help understand that you can do really well on Airbnb as a hotel. I'm surely not going to tell them because they simply won't be interested. A farang giving business advice? We all know that <deleted>'s not going to fly.

Bottom line, there are no cheap OTAs. The only one where you have a voice as a host is Airbnb. The others Agoda/Booking have such depraved business cultures that they don't even see their partners as human beings. I suspect they treat their customers pretty bad too. I'm reading things.

Reluctance on the part of Thai hospitality to offer an alternative like a website with direct bookings (either lacking the technical knowhow or just plain laziness?) means that Booking & Agoda are here to stay, at least for a little while and we'll have to endure their unethical business practices a little longer.

 

I'm actually being bullied by Agoda as we speak. Threatened to delist us because we apparently don't offer enough rooms (allotment) to their platform (even though they share allotment with Booking and we have a ton of rooms there).

In fact, the modus operandi for Agoda is often to delist first (out of nowhere) and then they'll tell you what you need to do for the ban to be lifted.

Shoot first, talk later so to speak.

Edited January 12 by Bassosa

[arick]

16 hours ago, Bassosa said:

That 3% commission is a bit misleading because in the end Airbnb gets its 15% regardless. Just means your guests are footing the other 12%.

I doubt that the people I was trying to help understand that you can do really well on Airbnb as a hotel. I'm surely not going to tell them because they simply won't be interested. A farang giving business advice? We all know that <deleted>'s not going to fly.

Bottom line, there are no cheap OTAs. The only one where you have a voice as a host is Airbnb. The others Agoda/Booking have such depraved business cultures that they don't even see their partners as human beings. I suspect they treat their customers pretty bad too. I'm reading things.

Reluctance on the part of Thai hospitality to offer an alternative like a website with direct bookings (either lacking the technical knowhow or just plain laziness?) means that Booking & Agoda are here to stay, at least for a little while and we'll have to endure their unethical business practices a little longer.

 

I'm actually being bullied by Agoda as we speak. Threatened to delist us because we apparently don't offer enough rooms (allotment) to their platform (even though they share allotment with Booking and we have a ton of rooms there).

In fact, the modus operandi for Agoda is often to delist first (out of nowhere) and then they'll tell you what you need to do for the ban to be lifted.

Shoot first, talk later so to speak.

Two nights booking 2912.00/night my take home was , 2600.00 meaning they take over 50%  I called them and within a few minutes they changed my takings to 5990.00 so if you don't watch your booking or call them you want get.