Home » Business » Booking.com Faces Controversy Over Missed Payments to Hoteliers and Facility Managers in Italy

Booking.com Faces Controversy Over Missed Payments to Hoteliers and Facility Managers in Italy

Missed payments since August, in some cases even since July. Unaccredited figures ranging from a few hundred to thousands of euros. The case of the online platform Booking.com, which has blocked payments to some hoteliers and facility managers for months, also concerns Italy. The British newspaper The Guardian raised the case internationally in recent days. In an article, it was reported that since July the platform has blocked transactions in Thailand, Indonesia and also some European countries, citing “technical problems”. Now several testimonies have emerged from Italian merchants who complain that they have been waiting for payments for three months now and that they have not received concrete answers on what the causes are and how much longer the deadlines will be to obtain the remuneration they are entitled to. So much so that some of them decided to proceed independently through legal action, while others turned to the European Association of Independent Consumers, which presented a complaint to the Antitrust.

Late payments

The story began in July, when this message appeared in the Booking.com extranet, the space on the site reserved for property managers: «We are carrying out maintenance work on our financial system from 1 to 11 July 2023. During During this period some of our financial services will be delayed (including fee billing for the June 2023 period, delayed until after August 10).”

It’s a shame, however, that some merchants never received the payments due to them even well after this date. «The last accreditation dates back to July 27th. From that moment on, nothing else”, Cristina, who manages two holiday homes in the center of Rome, tells Corriere della Sera. Considering both structures, Cristina is waiting to receive almost 10 thousand euros from Booking.com, to be precise 9,200 euros: «Before I had a small hotel, which I had to close due to the pandemic. Now I take care of two holiday homes – he continues -, but if I don’t receive payments from Booking.com I can’t even pay the rent and bills. My family risks not eating.”
The problem has also affected Fabio Siva, who manages a hotel in Rimini. For him the last credit dates back to 9 August: «I am waiting to receive around 7 thousand euros. Every week I receive an update on the status of the transactions, but it remains unchanged. After three months nothing has changed.” Sabrina, who manages a tourist accommodation in the province of Viterbo, also complains about the same problem: «The amount is perhaps not that considerable, it is 1,700 euros. But in my case the payments have stopped since June 28th.”

Booking: Payments resumed for most partners

Booking.com, consulted by Corriere della Sera, wanted to express its position on the issue: «At the beginning of the summer we communicated to our partners that we would undertake the necessary maintenance of our financial system and that this would lead to a postponement of payments . To date we can say that for the majority of our partners, payments have resumed normally. Unfortunately for some of them unexpected technical problems arose, which caused delays in the settlement of balances. We are very sorry for the inconvenience this is causing to a minority of partners. Booking.com is working extremely hard to resolve any inadvertent technical problems.”

Assistance almost unattainable

Hoteliers and managers from all over Italy who are united by this problem have gathered virtually in a group on Telegram, where they exchange advice and useful information. But it emerges from their exchange that problems also arise when contacting customer support. Booking.com reiterates that there have been no changes to how partners can contact the portal. «Booking.com customer service is always active and can easily be contacted by telephone. Partners also have access to the Partner Extranet with which they can send their messages. Alternatively, you can always contact your account manager.” In fact, however, none of the operators seem to have received concrete answers. «I sent dozens of emails, without ever receiving a reply – continues Fabio -. I also tried calling the switchboard, but no one could say what was happening.” «Having direct contact with accounting is impossible – Cristina echoes -. The only result is the opening of a reminder ticket for the payments, which in any case do not arrive”. Sabrina «also sent communications via certified email, but I never received any type of response. Nothing”.

The node of payment methods

As anticipated, delays in payments to facility managers began in July due to technical interventions in the platform’s financial system. The problems, however, continued in the following months for some operators: in some cases, Booking.com asked to change the credit method, so as to unblock and resolve the situation. But, even in this case, the money did not arrive. «Before I received the amount on a Postepay – says Cristina -. In September, Booking.com told me to enter my bank account information as required by the new accounting program, ensuring I would receive the money within five days. I’m still waiting.”

The strategy, for her, was to change the payment option. The platform, in fact, provides three options for managing guest payments:
– through a virtual card generated within the extranet, where the credits are deposited and from which the hotelier can withdraw as much and when he wants according to needs;
– through the Booking.com portal itself: the total amount of the stay is paid by the customer by credit card at the time of booking;
– directly at the facility: the customer pays not when he books via the platform but upon arrival at the accommodation, at his choice whether in cash or by card.
To avoid accumulating further delays in accreditations, Cristina canceled all October bookings to make payment in the facility the only possible option: «The problem, however, is that many foreign guests do not understand the situation, they do not trust and cancel. So, even in this way I am making a loss.”

The complaint to the Antitrust

There are many hoteliers and facility managers who have requested the intervention of the European Independent Consumers Association

. The president, Ivan Marinelli, explains that «we started dealing with it at the beginning of July and it was immediately clear that it was an international situation. Our activity starts from reports and, in that period, we received several from merchants who noticed that we had faced problems related to Booking.com in the past too.” From the first warnings, then, the work of the association began, which moves on two tracks: the individual actions, on which the territorial offices intervene, then become a collective phenomenon, from which we proceed with initiatives at a national level. «We have opened around thirty cases, with which at the beginning of September we presented a complaint to the Antitrust in Italy. For the moment we have not received any feedback, but the issue is still unripe. In fact, we are evaluating whether to integrate with further details, because from that moment more and more reports continue to arrive. Some also from managers who warn that this is not the first experience of this type.”

Commissions up to 18%

Faced with delays, like other hosts, Sabrina also adopted the strategy of changing payment methods, choosing to have her customers pay once they reached the accommodation: «This method requires me to pay the commissions to Booking.com via bank transfer – he explains -. But I have no intention of doing so until I get what I’m owed.” Commissions are another issue that worries hosts. «Commission rates remain at a global average of 15% – explains Booking.com to Corriere della Sera -, as they have always been. We offer an optional service for partners, Preferred Partner Programme, of which the best reviewed properties can choose to be part of, receiving a “thumbs up” logo on our platform and greater visibility. Participation in the program is entirely voluntary and involves a slightly higher fee.” However, to make this withholding heavier, two costs are added: 1.23% on the amount for managing the transaction and 22% VAT on Booking.com commissions. For example, as can be seen from one of Cristina’s latest invoices (see photo above), on an amount of 2,006.58 euros, the host pays 470.94 euros in commissions made up as follows:
– 18% of the amount for the platform service, equal to 361.18;
– 1.23% of the total as transaction cost, equal to 24.84 euros;
22% VAT will then be applied to each of these two items.

2023-10-07 05:30:53
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