Hotel Bonanza, a new online travel agency which launched this summer, welcomes the news that hotel booking sites are finally going to be investigated by the Competition and Markets Authority (CMA). High commissions, hidden charges and rate parity clauses insisted on by the big online travel agencies are leaving both consumers – and hotels – out of pocket.
Consumers are generally unaware that the big booking sites charge a minimum of 15% commission per booking. However, the reality is that hotels can pay a lot more than that. Many are forced to put up their prices to cover these commissions. To get a prominent search position, commissions can be as high as 30%, and that is especially misleading for consumers because they are presented with hotels that are simply paying more money, not necessarily what they searched for.
Suzie Barber, Co-Founder, Hotel Bonanza said: “The huge discounts offered to consumers are not actually discounts at all once you look more closely because the big booking sites insist on rate parity clauses which prevent hotels from selling any cheaper on their own websites. This effectively means there is no price competition and renders price comparison sites like Trivago useless because hotels generally sell at the same price everywhere. In addition to this, the cost of online advertising is now so high that properties are forced to sell via online travel agencies to gain exposure to travellers.”
Hotel Bonanza offers a fairer, cheaper way to book and sell accommodation online by charging hotels just 8% commission and offering consumers a membership that gives a discount on every booking, paid for out of our commission. Hotel Bonanza does not impose rate parity clauses, meaning hotels are free to sell at whatever price they like and do not charge hotels more for premium listings, giving the consumer what they search for.
About Hotel Bonanza
Like all the best ideas, Hotel Bonanza was born out of need. Founded by former hoteliers Suzie Barber and Bhavin Swaly, the team invested two years of research before launching this unique 8% commission model. The team explored all aspects of the travel industry including commission models and their benefits and flaws, the current market, and the changing buying habits of consumers. Motivated by positive feedback from the industry, and driven by a clear opportunity for change, the business partners launched Hotel Bonanza in summer 2017.
