The Booking.com “Preferred Plus” program was launched in 2021 with the aim of giving greater visibility to high-performing establishments on its platform. The goal was to reward these properties with optimal positioning, which in turn would lead to an increase in bookings.
The program remains active today, and we take a closer look at the strategic implications for hotels.
Preferred Plus is the premium level of Booking.com’s Preferred Lodging program. Its objective is to help participating establishments achieve greater visibility on the online booking platform.
The program is available on Booking.com Preferred Partners, offering them a visibility boost of up to 60%, which typically results in about 30% more visits.
The commission fee for Preferred Plus partners is increased to approximately 23%.
To qualify for the Preferred Plus program, in addition to already being a member of the Preferred program, establishments must meet the following criteria:
- Performance score: A combination of your establishment’s demand and annual bookings must equal or exceed 80%.
- Feedback score: A minimum guest rating of 8 is required.
It is also worth noting that, as an added incentive, Booking.com offers users who book at your property a credit for future bookings on the platform—though not necessarily at your hotel.
In recent years, the cost of online distribution for hoteliers has steadily increased.
For example, hotels participating in Booking.com’s “Preferred” programs have seen their commission rates rise from 15% to 18%.
While Booking.com and other OTAs (Online Travel Agencies) undeniably help hotels gain international visibility and attract more guests, one might ask: is the increase in rates and commissions truly justified by the benefits hotels receive from these programs?
According to Booking.com, the Preferred programs align with its broader efforts to improve competitiveness and focus on customer loyalty. However, this raises a crucial question: who exactly is fostering customer loyalty—Booking.com or the hotel?
The answer is clear: Booking.com.
Therefore, hotels must decide whether they are willing to lose a significant portion of bookings or if paying higher commissions for enhanced visibility through programs like Preferred Plus is worth it.
At 123COMPAREME, we are clear on this: the focus should be on direct sales.
2 key reasons why hotels should focus on direct bookings
- Online distribution fees are unlikely to decrease. Across all channels, the distribution fee accounts for roughly 25% of the room rate.
- OTAs hinder customer loyalty. These platforms increasingly prevent hoteliers from establishing direct contact with guests, making it difficult to build loyalty during both the pre- and post-stay stages. As a result, guests tend to remain loyal to the OTA rather than the hotel itself.
Contact us today to develop a plan on how to strengthen your hotel’s direct booking channel!
