What is a booking fee?

When you book a room or vacation rental, you may see a booking fee added to the total cost of your reservation. A booking fee is a charge that covers the cost of processing and administering your reservation, including expenses like credit card fees, administrative costs, and third-party booking platform fees. The amount of the fee can vary and can be a flat fee, a percentage of the total booking, or a combination of both.

Some property management companies, hotels, and vacation rental platforms charge a booking fee to guests to increase revenue and cover costs associated with booking and handling reservations. In some cases, the fee can be added to the base rate. In other cases, it can be presented as a separate line item in the total cost of the reservation.

However, guests should be aware that this fee can significantly increase the overall cost of their stay, which may make the reservation less attractive. Some guests may book directly with the property or company to avoid paying a booking fee.

It’s important to check whether the booking fee is included in the advertised price of the property or presented as a separate line item. Additionally, guests should compare the booking fees charged by different platforms, as they can vary in percentage or amount. By doing so, guests can make an informed decision and choose the best value for their money.

💡 Thinking about implementing a booking fee for your vacation rental business? Download our free expense spreadsheet here.