How Transfers Money to Hotels: A Comprehensive Guide

Introduction

is a leading online travel agency (OTA) that facilitates hotel bookings for millions of travelers around the world. One of the key aspects of this platform is its unique money transfer process to hotels. By understanding how this process works, hotels and travelers can better anticipate and manage their respective financial transactions. This article provides a detailed overview of the steps involved in the money transfer process, along with the different payment methods and terms applicable.

The Commission-Based Model

typically operates on a commission-based model for transactions with hotels. This structure means that the platform charges a commission from the hotel for each reservation made through its platform.

Reservation Confirmation

When a guest books a hotel through , the hotel receives a reservation confirmation. The payment for the reservation is usually processed at the hotel upon check-in or check-out, depending on the hotel's payment policy.

Commission Structure

takes a commission from the hotel for each reservation, which can range from 10% to 20% of the booking price. This commission is agreed upon between and the hotel and is based on the terms of their contract.

Payment Processing

The process of transferring money from to the hotel involves the following scenarios:

1. Direct Payment Handling by

For hotels that require prepayment, may handle the payment processing directly and collect the funds from the guest. Once the payment is processed, will deduct its commission and then transfer the remaining amount to the hotel.

2. Payment at the Property

For hotels that allow payment at the property, the hotel collects the payment directly from the guest upon arrival or departure. In this case, does not handle the payment processing directly.

Settlement Period

After a guest's stay, the hotel typically receives the payment minus the commission within a few days to a couple of weeks, depending on the specific terms agreed upon in the contract between and the hotel.

Reporting and Invoicing

Hotels receive detailed reports that provide insights into bookings, cancellations, and associated commissions. These reports help hotels to track their earnings and understand how much they will receive after commissions are deducted.

Alternative Payment Methods

In addition to the standard commission-based model, also offers alternative payment methods to hotels. Here are the two primary options:

Option 1: Through OTA with Monthly Breakup

Guests can book a hotel directly through and pay via the platform. then provides a monthly breakup report to the hotel, detailing all payments, cancellations, and associated commissions. Based on this report, the hotel can receive the income generated from these bookings directly.

Option 2: Via Payment Direct to Hotels

Another option is for guests to pay directly to the hotel through an online payment link provided by In such cases, the hotel collects the payment directly from the guest, bypassing 's commission structure.

Conclusion

serves as an intermediary that facilitates the booking process while managing payments and commissions. By understanding the intricacies of the money transfer process, hotels can better manage their financial expectations and improve their overall operations. Both the standard commission-based model and alternative payment options provide flexibility for hotels to choose the method that best suits their needs.

Frequently Asked Questions (FAQs)

Q: What is the typical commission rate for bookings made through

A: The commission rate for bookings made through typically ranges from 10% to 20% of the booking price, depending on the agreement between and the hotel.

Q: How often does provide settlement to hotels?

A: Settlements occur within a few days to a couple of weeks after a guest's stay, depending on the specific terms agreed upon in the contract.

Q: Can hotels choose between the standard commission-based model and alternative payment methods?

A: Yes, hotels can choose between the standard commission-based model and alternative payment methods that allow direct payments to the hotel.

Note: This information is current as of [Date]. For the most up-to-date information, please consult 's official documentation or contact their support team.