It’s true what you read. Go-MMT offers zero commission rates to its hotel partners. Here’s everything you need to know about it.
What Is Zero Commission Rate?
This is a plan introduced by Go-MMT, India’s largest online travel agent (owners of MakeMyTrip and Gobibo).
In an effort to support its hotel partners and drive greater value, the travel giant has introduced a feature that waves off their commission on last-moment bookings. These include all bookings for today and tomorrow’s check-ins. Not only does this help hotels sell their proposition at the best possible rate, but it also lowers the cost of distribution for the hotel partner.
What’s the Need?
An increasing number of consumers are booking their travel online thanks to rapid digitalization. It’s not news anymore. But, this rapid digitalization has also given rise to increased competitiveness. Properties around the world want to make their presence felt in this buzzing online space.
To stand out, hotels need to give themselves an edge over others. The zero commission rate is a way to give properties this edge, allowing properties to put out the best possible rate to their prospective customers.
Why Offer Zero Commission on Last Minute Check-Ins?
The modern traveler tends to explore multiple options before booking accommodation. In some cases, they even bid for the best hotel rates online.
These trends have prompted MakeMyTrip and Goibibo, along with the hoteliers from the industry, to try and offer the best possible price on a daily basis, which is expected to be lower than the regular rates. This rate can be run by the hotelier for up to 30 days from the date of sign-up, with a recurring feature, and is applicable only for today and tomorrow’s check-ins.
Numbers Do the Talking…
Here’s a dip into how the zero commission rate helps bring down distribution costs.
What Benefits Do Hoteliers Get to Reap?
Hotels that have used the zero commission rate feature have witnessed a tremendous upside in bookings. 22% of hotels that are using it have seen an upside of 110% in their overall room night productivity, and have also seen their overall revenue generation shoot up by a whopping 135%, on a month-on-month basis.
The biggest advantage, however, has been the reduction of effective commission by 4.5%.
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