Hotel booking site challenges rivals with zero commission offer
Booking site Hotel Bonanza is offering accommodation providers 0% commission if they promise not to sell cheaper on any other third party websites.
In order to benefit from zero commission, accommodation provider must also offer Bonanza Club members an additional 5% discount.
The online travel agent said the 5% discount would be based on the hotel’s room rates on other websites.
Accommodation providers will be able to offer cheaper rates on their own websites and still be eligible for Hotel Bonanza’s 0% commission.
The site, which launched last year, was originally charging hotels 8% commission, but co-founder Suzie Barber said this was much lower than established rivals like Booking.com, which charge up to 30%.
Bonanza Club members must to signed in to see the discounted prices, so Barber said rate parity clauses are never affected.
She believes that by not charging hotels commission, Hotel Bonanza will enable them to offer lower prices and perks such as complimentary drinks, spa treatments and discounted meals.
To access Hotel Bonanza prices and receive the 5% discount, users need to register an email address. After they make their first booking, they enter a 30-day trial period, at the end of which they will be charged a membership fee of £10 a year.
So far, Bonanza Club has attracted 10,000 members and signed up 14,000 properties, leading it to place a £1.35 million valuation on the company.
Hotel Bonanza plans to raise a further £4.5 million in three phases, the first of which will be £250,000.
"To reflect how much we want accommodation providers to be part of our journey, we have decided to open our round to them first offering a reduced valuation of £1m with a minimum investment of £100," added Barber.
"The industry has wrestled with the problem of high commissions for many years and this is an opportunity to make significant changes that will benefit accommodation providers and consumers in the future."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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Hotel booking site challenges rivals with zero commission offer
Booking site Hotel Bonanza is offering accommodation providers 0% commission if they promise not to sell cheaper on any other third party websites.
In order to benefit from zero commission, accommodation provider must also offer Bonanza Club members an additional 5% discount.
The online travel agent said the 5% discount would be based on the hotel’s room rates on other websites.
Accommodation providers will be able to offer cheaper rates on their own websites and still be eligible for Hotel Bonanza’s 0% commission.
The site, which launched last year, was originally charging hotels 8% commission, but co-founder Suzie Barber said this was much lower than established rivals like Booking.com, which charge up to 30%.
Bonanza Club members must to signed in to see the discounted prices, so Barber said rate parity clauses are never affected.
She believes that by not charging hotels commission, Hotel Bonanza will enable them to offer lower prices and perks such as complimentary drinks, spa treatments and discounted meals.
To access Hotel Bonanza prices and receive the 5% discount, users need to register an email address. After they make their first booking, they enter a 30-day trial period, at the end of which they will be charged a membership fee of £10 a year.
So far, Bonanza Club has attracted 10,000 members and signed up 14,000 properties, leading it to place a £1.35 million valuation on the company.
Hotel Bonanza plans to raise a further £4.5 million in three phases, the first of which will be £250,000.
"To reflect how much we want accommodation providers to be part of our journey, we have decided to open our round to them first offering a reduced valuation of £1m with a minimum investment of £100," added Barber.
"The industry has wrestled with the problem of high commissions for many years and this is an opportunity to make significant changes that will benefit accommodation providers and consumers in the future."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
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