This is the first that I have heard about new hostels getting charged 15%. It's probably a question of the property type like John mentioned, but it could just as easily be a new policy. I do foresee WRI increasing everyone's commissions to 15% or more in the future. The costs will only go up from here on out as WRI try to convince potential buyers of the value of their company.
If you haven't already seen it, check out the New International Campaign: Book Direct and Save. There are tips there on dealing with the increased commissions in a way that reduces the impact on your hostel's revenue, and also tips on increasing your direct bookings so that you're less reliant on the booking sites.
Can you please send me the HW link where that information is, i can't find it.
I do have a guest house and 2 hostels, in the contract for one the hostels they are trying to put a 15% commission
check the contract. Any help would be appreciated.
HOSTELWORLD STANDARD SERVICES AND LICENCE AGREEMENT
This agreement is entered into between Hostelworld.com Limited (HW) and the owner of the property named in the Key Details below. HW is a company incorporated under the laws of Ireland with registered number 337103 and its registered office is at Charlemont Exchange, Charlemont Street, Dublin 2. Under this agreement, HW agrees to provide marketing, information technology and data processing services to the Licensee and to promote beds in the Licensees property for reservation via Hostelworld.com and the other Websites (as defined below) by third party customers (Customers).
This agreement takes effect when HW sends the Licensee confirmation that it has received and accepted the Licensees completed license application.
Name of property (the Property) Blue Almond Hostel Providence
Address of Property Fresh Water Bay, Providencia Island, Colombia Property type HOSTEL
Total number of bedrooms in the Property 2
Total Bed capacity in the Property 8 HW Standard Deposit (%)i.e. % amount of transaction value paid by customer online to secure booking. 15%
[X] (the Standard Deposit) or any other % as may be notified to Licensee by HW from time to time (the Varied Deposit) HW Standard Service Fee (%)i.e. % of transaction value charged by HW for its services. 15%
[X] (the Standard Service Fee) or any other % as may be agreed by HW and the Licensee from time to time (the Varied Service Fee)
Effective Date (as applicable)
Signed for and on behalf of Licensee
Name (First Name, Last Name)
Licensees email address for Contracts (to be used for future contract related correspondence)
This has been google translated, this is the answer from hostelworld.
15% for new properties it is fellows, no matter whether you are a hostel or a guest houses.
How are you ?
Thanks for your mail .
In February Hostelworld has decided to change his commission due to market requirements . This decision has been taken to improve our investment in marketing and other aspects of our website and be able to offer better service to the properties.
Depending on the differences between markets , geographical areas , and type of property the commission gained differently. We have increased 15% commission and all new properties have made the inscription having to incorporate this change.
For properties that have been listed on our website by June 2013, the change will be gradual and the commission will be increased later.
We believe that in this way we will create a long-term investment , not only for us , but especially for our employees who will benefit from this change more specifically .
I hope that the information I sent you clarify your doubts and the reasons that lead us to make our decision.
Let me know if you have any further questions and I'll help ' delighted.
So this is from the Hostelbookers changed contract
(vii) The "Standard Commission Fee" means (i) where the Booking is in respect of a "hostel" (as
determined by the Company in its sole discretion),12% of the total cost that a Client would be
charged for all nights comprising their Booking; and (ii) where the Booking is in respect of any
other type of Property, 15% of the total cost that a Client would be charged for all nights
comprising their Booking (and "Commission Fee" is more fully defined in clause 4.1).
They will push it as far as hostels let them. If hostels let them take 12% and 15%, it will eventually be 15% and 20% and then maybe even 20% for everyone except for the hostels that make special agreements with them. (The biggest hostels tend to get deals.)
I'm a keen hostel user and avid traveler. The frustrations I have seen with HB and HW along my travels have driven me to work on my on internet start up. When launched in about 6 months this will provide a booking facility for hostels/guesthouses only and I aim to charge between the 8-10% range, hopefully on the lower end dependent on my setup costs. I am currently working on what introductory offers I can provide to the first hostels who come on board.
I know it is a big competitor to face but we are going to start small, targeting specific regions that I know well, and keep to our roots by keeping the fees low and really work with the hostels we aim to service.
Is this sort of initiative you as hostel owners would support? I wouldn't be asking for any fee other than the booking commissions and the whole basis of the start up is to charge less than our big competitors. I understand it will be slow going and we won't be able to provide the levels of bookings the HWs and HBs do however we won't get off the ground without the kind support of owners like you listing on our site.
I am keen to hear any feedback or comments you have?
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