How Does Booking.com Make Money?
Established in 1996, Booking.com guarantees the best prices for any type of property, ranging from small independent hotels to a five star luxury through Booking.com. The Booking.com website is available in 41 languages and offers over 300,000 hotels in 183 countries.
When you look towards building a business like booking.com it is imperative to understand how does booking.com makes money. This is important because businesses flourish only when the revenue model is pre-determined with a vision for the same.
Here are some of the major revenues which explain how does booking.com make money:
Commissions
The primary revenue stream for booking.com is the commissions generated on confirmed bookings. This is the commission charged to the hotel owners at the end of a term where booking.com charges commissions only when it brings business to the property owner. It is specified that no charges are levied on the owners other than these commissions. Booking.com does not charge any signup or listing fees from the property owners
Higher Listings:
Property owners can pay to get a higher listing on booking.com. this will act as an investment since getting a higher listing on the platform will help the property owner to get more business from the platform. This is another way how does booking.com make money
This revenue stream acts for the benefit of both parties. Since booking.com is a huge platform and lists thousands of hotels, getting a higher listing will make it easier for the property owner to get more visibility on the web.
Advertisements:
Earning revenue through advertisements is another way how does booking.com makes money. Booking.com hosts several advertisements on its website which generates revenue. However, the revenue generated from advertisement is relatively a small percentage of the total revenue generated by the business.
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SG
