Hoteliers in Greece React to New Booking.com Payment Policies

POX President Yannis Hatzis. Photo source: POX

Greek hoteliers have reacted to a recent decision by online travel website Booking.com which requires hosts to use a virtual card to secure reservations, precluding the option of requesting deposits.

“This unilateral directive places an undue burden on hoteliers, necessitating acceptance of the virtual card’s elevated commission rates to mitigate the risk of non-shows, in addition to the already substantial booking fees paid to Booking.com,” said the Hellenic Hoteliers Federation (POX) in a letter to the company’s area manager for Greece and Cyprus, Tasos Efthymiou, and to Greek Tourism Minister Olga Kefalogianni.

In the letter, POX Chairman of the Board Yannis Hatzis goes on to add that should Booking.com fail to enter dialogue and find “equitable solutions” that will facilitate the relationship between Booking.com and its affiliate hotel partners, the association will take legal action.

According to Greek hoteliers, the new requirement “unjustly infringes on hotels’ statutory entitlement”, as per Greek legislation, to secure reservations with deposits to safeguard against potential losses arising from last-minute cancellations and no-shows.

“The ramifications of this decision are significant, as it not only limits the autonomy of hoteliers but also undermines their financial viability and operational flexibility,” the letter adds.

Until recently, hoteliers were given alternative payment options including the use of credit card, transfer, or cash. Meanwhile, the commission rate per transaction for use of the Booking virtual card which initially stood at 1.1 percent several months ago is now at 3 percent. Additionally, hoteliers were able to collect payments on reservation which is now paid on the day of arrival.

According to media reports, POX plans to file the issue with the Hellenic Competition Commission.