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Our view on booking commissions...

Money manIntrinsically there is nothing wrong with commissions. If a service has been provided then it is only fair that a value should be placed on that service.

However we have seen a dramatic increase in commission based services within the hospitality industry since we started in 2001 and it seems that everyone wants a cut from the hotelier. There comes a point when this becomes untenable and the hotelier finds themselves working as much for other companies as themselves. We avoid commissions and offer a pricing structure that is clear and simple to understand.

For example, since The Crown Inn, Lanlivery started using our online booking system on their own website, they have taken more than 22,000 pounds worth of bookings with ONLY 4 rooms ** in one year! This has cost them just 499.00 for our CaterBook systems. However, if they had used an online option from a competitor who charge commissions for the same service, they would have paid a minimum of 1320.00 *. Not only that, but the charges are ongoing for all the following bookings whereas we charge them just 150.00 per year. That is a saving of at least 1990.00 over a 2 year period! We strongly believe that online bookings derived by the hotelier on their own website should be commission free- you got the business, why pay someone else a commission?

This is why we encourage people who are looking into property management systems to do the homework regarding the real overall costs.

* Figures based on 22,000 pounds worth of online bookings per year made on the hoteliers own website. Full details of competitors online charges can be found here (see page 13). UPDATE NOTICE! The data on the link has been removed... however it has been independently archived and is still available here

** The Crown Inn has since expanded the accommodation business with an additional 5 rooms which indicates just how successful they have been...

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