Max asked. I replied.
Should the government regulate the commissions hotels pay to OTAs?
I am always cautious when the State intervenes in the dynamics of the private sector. History teaches us that once regulation begins, it rarely stops where it should.
That said, the Preisüberwacher’s decision to label Booking.com’s commissions as “abusively high” feels like the wrong target for the right frustration.
Yes, commissions are high. Yes, they haven’t evolved in line with the market.
But I think the real issue is not the commission percentage; it’s the algorithmic black box no one talks about.
Accelerators. Genius programs. Preferred listings. Over-commissioning schemes. These aren’t distribution tools. They are layers of gamification that silently distort visibility and margins, pushing hotels into bidding wars they never agreed to.
Take Genius, for example: if everyone is in the program, you’re not paying for extra visibility; you’re paying not to be penalized. It’s no longer a benefit; it’s protection dressed up as a marketing boost.
The abuse isn’t always in the commission percentage on the invoice. It lies in the opaque logic that determines whether your hotel gets seen or not.
So no, I don’t think governments should set commissions. But I do think we need to shine a light on how the distribution game is being played.
Read more here: https://lnkd.in/dKcRYikj
~ via Hospitality Net