The Complete Guide to Hosting on Booking.com

As someone running a business in the property rental game, you know that there are many platforms where you can list your properties. Airbnb is known for being easy to use and is especially popular with first-time hosts. One of their main competitors is, of course, Booking.com. The platform offers travelers a wide variety of accommodations to choose from. But how easy is it to run a short-term rental business using this platform? 

In this guide, we’ll take you through everything you need to know before listing your property on the platform and share tips and tricks for turning your Booking.com listing into a lucrative, easy-to-manage business. 

The platform is certainly slightly more complex than the listing procedures you must go through to get your property on Airbnb. However, once you get the hang of it, you can increase your property’s online visibility and drive more guests to your listing to ensure maximum occupancy. 

An introduction to Booking.com

Booking.com is the world's largest online accommodation booking platform. It does not limit itself to guest houses and spare rooms in people’s homes. Rather, travelers can book hotels, guest houses, private homes, and other accommodation types. With big players also being allowed to list their properties on the platform, there is an element of competitiveness it brings to host. 

When talking in figures, the stats that Booking.com operates under confirm the scale of the online platform. As of 2023, there are currently a massive 28 million properties listed on Booking.com for travelers to choose from. Accommodation options extend to a total of 228 countries around the world, and the site received 511 million visits in October 2022 alone. 

The platform is hugely popular with travelers who are looking to book accommodation, given its user-friendly interface and easy booking process. There are no hidden fees for travelers, and they pay exactly as advertised on the website. This and the fact that there is more variety of accommodation available are some of the reasons the site is slightly more popular for travelers than Airbnb, for example. 

However, for hosts, other platforms are slightly easier to navigate when it comes to short-term rental homeowners listing their properties. This is mainly because much more administration is associated with listing a property on the Booking.com platform. However, once you understand the platform and how to use it effectively, you can run a very successful business on Booking.com. 

Why you should consider hosting on Booking.com

There are several benefits hosts can look forward to when listing their property on Booking.com. 

As the world’s largest online accommodation booking platform, the site has impressive traffic. More visitors visit that site than any other similar platform. 

Secondly, for those in the short-term rental business, there is an opportunity given that there are fewer of these property types on Booking.com than on Airbnb. 

Effectively, hosts get more exposure for their short-term rental properties with less competition for this type of accommodation. Other features of the platform are appealing to hosts, such as the following.

• It’s free to list any kind of accommodation property
• The platform allows hosts to set their own terms and conditions, which are mandatory for guests to agree to before they complete their booking.
• There is a support crew available to be contacted 24/7 and in over 43 languages.
• Hosts can set certain criteria as a vetting process, allowing them to be selective about who stays in their property.
• Booking.com is easy to connect with your current property management software, meaning that all administrative processes surrounding finance, occupancy, and property availability are readily available in one place.

For this reason, it’s certainly worth your time to consider listing your property on Booking.com. Although the listing system is slightly more complex to navigate, the perks you get from being a Booking.com host make the effort totally worth it. 

How much does it cost to be a host on Booking.com?

Although listing your property on Booking.com is free, they have to make money in some way. They do this by charging you a commission which they take from whatever you make off the platform. The total commission charge is 15% per reservation you receive. There is no monthly subscription fee or daily rate you must pay to have your property listed on the platform. Therefore, you are only charged as a host when you get a reservation. 

Although this commission may seem steep, there are ways that you can work around it in your listing price. The key here is to consider the 15% commission when deciding how much you want to charge guests for the property. As someone who runs a business, you would have already done the cost evaluations of how much it is to run your property and the amount you need to take home per night to make a profit. 

When you work with Booking.com, you also need to take card transaction fees into consideration as the platform does not charge guests - this is another expense that falls onto you. 

Before listing your property, you should have these numbers clearly defined. Once you have your nightly rate established, you need to remember the 15% commission charged by Booking.com. 

Based on a commission fee of 15%, the formula to calculate how much you should list your property for on Booking.com is as follows: Take home rate ÷ (1 - 0.15). For example, if you establish that you need to take home $100 per night from a reservation, then you must list your property on Booking.com for $117.65 according to the formula. 

However, one thing to note is that the platform does not allow you to list properties at prices with decimals. Therefore to cover costs, you need to list your property for $118 to ensure you cover the fees charged to you by Booking.com. 

The differences between hosting on Airbnb and Booking.com

Many people who are new to the short-term rental business often prefer to list their properties on Airbnb because the process of uploading a listing on the platform is substantially easier. It’s also an ideal platform for new hosts to try their hand at running a business in the hospitality sector. 

The listing process

Airbnb appeals to many hosts because the listing process is quick and easy. When you upload your property on Airbnb, you can complete the entire listing process and start taking guests on the same day. All you need to do is have the photos of your property ready to upload and know which tags you want to attach to your property. 

Airbnb also provides hosts with booking policy templates. There are three that hosts can choose from depending on the degree of stringency they wish to implement surrounding their cancellation and deposit policies. 

However, the Booking.com listing process does take slightly longer as you will need to wait for the platform to verify your listing before they start advertising it. In addition to the approval process, you also need to draw up your own reservation policies. While there are guides on how to do this on the Booking.com support pages, they will not do this for you. 

There are also different rate categories you can choose from when you upload your property on Booking.com. You will have to select this yourself and make sure that the rates are in line with the policy you have drawn up. 

The final step in the Booking.com listing process is setting up a portal through which you can accept payment from your guests. Booking.com does not handle the payments, unlike Airbnb, and you will need to set up an account with Stripe or someone similar in order to list your property on the platform. 

Interactions between hosts and guests

One of the key features of Airbnb is that it encourages guests and hosts to interact both prior to and during the booking process. There is a comprehensive messaging system that facilitates easy communication between the guests and the hosts. Airbnb is therefore marketed as a community-driven online travel platform. 

With Booking.com, there are little to no interactions between guests and hosts before the booking. The platform only accepts instant bookings, meaning that there are no options for guests to submit inquiries through the platform for their booking before committing. This is highly advantageous for hosts if they have the right booking and cancellation policies in place, as it means that reservations guarantee cash in the bank. There are options to have your property listed as an instant booking on Airbnb, but the responsibility falls on the host to respond promptly to guests. 

Another difference between Airbnb and Booking.com in this area is their approach to reviews. Guests are able to leave reviews about their experience on both platforms. However, Airbnb allows hosts to leave guest reviews, too, further attributing it as a community platform.  

Guest billing system

As part of the listing process hosts on Booking.com have to supply their own payment processors to accept payments for reservations made through the platform. With Airbnb, the platform handles the payments on behalf of the host and pays them once the guests have completed their stay in the property. 

Booking.com simply facilitates the booking. Therefore, when guests make a payment, it goes directly to the host. The commission for reservations is charged to the hosts at a later date. 

Implementing cleaning fees and damage deposits

Cleaning fees and damage deposits are usually added by hosts to cover any potential damage to the property made by guests and to cover the cleaning service at the end of their stay. Having these as separate charges is a good way to make sure you don't lose any money as a host. The way you charge these on Airbnb and Booking.com are different for the two platforms. 

With Booking.com, hosts have a lot more flexibility. They can choose to include cleaning fees in the listing price or not. It’s advisable to include the cleaning fees in the listing price on Booking.com as one of the things that guests like about the platform is the fact that there are no hidden fees. 

With Airbnb, guests are informed about the cleaning fee and damage deposits when they check out, meaning they end up paying more than the initial listing price. However, this is now a well-known feature of Airbnb and does not necessarily deter guests. 

Regarding damage deposits, it’s the responsibility of the host to hold the deposit and return it to the guests a maximum of 7 days after their exit, provided the guests have not damaged anything on the property. With Airbnb, damage disputes are conducted after the stay, with Airbnb support often facilitating these disputes. In this case, Booking.com works more in favor of the hosts as they are more in control of what they deem as damage. Booking.com does not get involved unless it is absolutely necessary. 

How the platforms bill hosts

Booking.com charges a 15% commission. However, unlike Airbnb, this is charged monthly based on the number of reservations made through the platform. Hosts pay this commission via direct debit. Therefore they have to make sure there are sufficient funds in their account on the billing date. 

As Airbnb handles payments, the fees charged to hosts are already deducted at the end of every stay, meaning the amount paid to the hosts upon the guest’s exit is theirs to keep. There are also different fees associated with different policies on Airbnb. Therefore, the amount you pay to the platform depends on your selected policy.

Capturing the guest’s details 

Booking.com does not request the guest's contact and address details automatically. There is a separate setting you need to enable on Booking.com when setting up your property listing. This is a necessary requirement you need to take into consideration when you take credit card payments from your guests. To ensure you get the correct details, you need to correctly set up this part of the listing. Under ‘Guest Details,’ simply stipulate that guests cannot make a booking without providing a phone number or an address. 

With Airbnb, the guest’s details are captured automatically by the platform. 

Cancellation policies

Airbnb has three tiers of cancellation policies which are separated according to the policy’s level of stringency. The tiers are divided into Flexible, Moderate, and Strict.

With the Flexible policy, guests get a full refund if they cancel at least 24 hours before the check-in time, and a full refund less any of the nights already used during their stay. If guests cancel less than 24 hours before they are due to arrive, they are still charged for the first night. 

The Moderate policy entitles guests to a full refund provided they cancel 5 days before their check-in time, but only 50% if they cancel with less notice. Under Airbnb’s Strict cancellation policy, guests can only get a 50% refund if they cancel 7 days before their check-in time, and no refunds are given thereafter.

With Booking.com, hosts can set their own cancellation policies, giving them a lower flexibility with regard to refunds. However, this does mean that you need to ensure that you link your policy to your Booking.com rate and manage the costs yourself. You can do this by selecting the ‘standard rate’ when setting up your listing and by choosing the ‘manual’ option under how to manage your rates.

Common issues with Booking.com and how to avoid them

Because of the additional steps you need to take as a host on Booking.com, there are some common issues that many people encounter, often resulting in hosts feeling slightly deterred by the platform’s listing system. However, once you know your way around the platform, these issues are easy to overcome. Some of the common problems hosts encounter are as follows.

Making double-bookings 

Booking.com is simply a booking facilitator, therefore cannot prevent your property from being booked on another platform. It’s, therefore, important that you keep a close eye on the bookings and make sure that you update the availability of the platform regularly. With property management software, this becomes a lot easier. 

Something like Hospiria’s property management software enables you to keep track of bookings all in one place. You can link your Booking.com listing and other platforms to your software and program it to update these for you automatically, helping you to avoid double-bookings. 

If you cannot accommodate your guests, the responsibility falls on you to arrange alternative accommodation for them and any transport costs associated with the change in itinerary. This can end up costing you.

Guests canceling on you at short notice with no compensation

Plans can change at any point. Therefore, if your cancellation policies do not cover you, it can also result in you getting zero compensation for the booking. This is where you need to ensure that your cancellation policies are watertight when you list your property on the platform. As you can create bespoke policies on Booking.com, you can implement strict no-refund policies. This won’t prevent guests from canceling altogether, but it will ensure that you’re not out of pocket. 

When uploading your listing to Booking.com, make sure that you select the option of a ‘non-refundable’ booking. This means the guest will be charged for their reservation whether they show up or not. Because you have the flexibility of manually monitoring your bookings, you can update these policies at your discretion after considering the circumstances. 

However, for no-show scenarios, you will still be fully compensated for the reservation made through Booking.com. Guests have to agree to the terms and conditions of the booking before they complete any transactions. Therefore, you have leverage should a problem arise after the fact. Booking.com will not get involved in any disputes unless absolutely necessary. 

Differing prices advertised on Booking.com vs. what you have set

Booking.com often runs discounts and specials and offers their Genius members a 10% discount off selected bookings. This can sometimes impact the listing price of your booking and advertise it as different from what you have set. 

To prevent any surprises, pay close attention to how the promotions you set stack up. Booking.com offers, for example, Mobile promotions and Country Promotions to entice certain guests by ways of discounts. But these can stack up, and be added to Genius discounts. Deep Deals and Flash Sales may or not be added to these or to Genius, so read the notes on the platform when you're creating a new promo to understand how the discounts will add up make sure that your rates and booking policies align. It’s also not mandatory for hosts to list their properties with the Genius loyalty program. Therefore if you do not wish to offer your guests discounts, you don’t have to. 

By selecting that you will manage listings and prices daily, you can choose which rates are advertised. As long as you ensure you stay on top of the money coming in, this should not be a problem. Again, using a property management software like Hospiria’s can help with this, as it syncs your accounts and keeps track of your property’s finances for you.

Opportunities in Booking.com are not always the best options to drive your occupancy - these are generic messages based on market samples, and as a host you may feel that your property either does not require these costly promotions or that the opportunity does not reflect your case. Booking.com, as most other platforms, offers an array of options to promote and increase the occupancy of your property. As these are either discount or commission based, care is advised when using these , and ensure that you do not sign up to every opportunity that booking.com offers you as these can be expensive by way of discounts or commissions.  

If you need a hand with working out what discounts you should be using, we have a friendly, expert team, ready to assess the best and less costly yet more productive options with you.