A new online travel agency (OTA) Hotel Bonanza Offers Hotel Booking at 8 Percent Commission and other perks!

Source: Startup pitch: Hotel Bonanza wants to redress the shaky hotel-OTA relationship

This Blog, by Linda Fox of Tnooz, covers the Startup Hotel Bonanza, a new OTA working with hotels at only  8% commission. That’s good news for hotels for sure. It is also good news for travellers as they offers a membership that gives 5% off every booking.

As they say “Our mission is to deliver a better deal for both properties and consumers by offering a fair rate of commission and a customer loyalty scheme, all run from a single, easy to use digital platform.”

Linda wondered if its too good to be true and why would they offer so much right at the start as that it like a red flag to the existing OTAs. I suggest that’s lots more like this will happen. I know they will because i am involved with one startup right now that looking at fair and reasonable commissions and will make distribution a vital partner of tourism suppliers.  Check this blog for updates coming soon!

I did add a comment to this blog saying:

“Yes I agree ‘Good news sometimes does seem to be to good to be true’. But I think it is realistic. For some time now their has been speculation that OTAs will have to reduce fees.

For smaller hotels the startup rate is now 15% and Google hotel Ads start at 10% TripConnect for some hotels is 8%. Booking.com charges just 5% on direct booking to hotels that have their booking widget installed. So 8% is in line with where things are going.”