As we mentioned in our analysis of Booking.com’s US strategy, the company has finally released a payment solution for vacation rental managers called Payments by Booking.com. The solution is first aimed at vacation rental managers in the US. For years, Booking.com had lacked a satisfying answer in the US vacation rental market, hindering its efforts to compete with Vrbo and Airbnb. “Payments by Booking.com” addresses recurring issues with Booking.com’s guests that made them unattractive to property managers, such as a high cancellation rate, fraudulent bookings, and many chargebacks.
Nevertheless, as is common when Booking.com introduces a new feature, there is no straightforward method to determine whether you have access to the solution. The only approach is to examine your Extranet. You might also consider contacting your account manager to have them activate the feature for you.
How Payments by Booking.com Works
The payment solution is not mandatory, and property managers must actively choose to opt in to use it.
When guests make a reservation on Booking.com, they will see a clear payment summary that shows the payment amount, payment method, and payment schedule. If guests need to modify or cancel their reservation, they can do so directly through their Booking.com account. The modified or canceled reservation will then be reflected in the payment summary.
Additionally, guests will only see Booking.com on their credit card statement, making it easier to identify the transaction.
The Payments by Booking.com solution also allows for a wider range of payment options, including major credit cards and PayPal, giving guests more choices for payment. Overall, the guest experience is streamlined and secure, increasing satisfaction and trust in Booking.com.
Benefits of Joining Payments by Booking.com
By joining Payments by Booking.com, vacation rental managers can enjoy several benefits:
- Decreased cancellations and no-shows, with a 14% decrease in cancellations and an 83% decrease in no-shows.
- Enhanced fraud and chargeback protection for secure revenue and streamlined operations.
- Increased visibility to attract new guests, resulting in a 10% increase in bookings in the US.
- Guaranteed payouts with reduced-cost transactions, with no charges for using the tool until the end of 2023.
- Improved payment convenience and security for guests.
- Removal of operational tasks around payments, how much to charge, and when to charge based on policy conditions.
- Avoidance of invalid credit cards and fraudulent payments.
Joining Payments by Booking.com
- This service is primarily available to vacation rental managers in the US but can be accessed globally.
- All properties are not guaranteed eligibility, and property managers must check their Extranet to see if they can opt in.
- Property managers can go to the finance tab in their extranet or group account to opt-in and choose the online payments option.
- Stripe processes all payments, and property managers must create a Stripe account to receive payments.
- The Know Your Partner (KYP) process must be completed to ensure compliance and accuracy of information.
- Property managers can choose which properties they want to opt-in to Payments by Booking.com.
- Old reservations will remain in the same payment process, but new reservations will be processed by Booking.com.
- Payouts are made directly to the property manager’s bank account on the check-in date, and damage deposit fees are not processed.
- While not all properties are eligible for Payments by Booking.com, Booking.com does offer other payment solutions for its partners globally, and payment solutions may vary depending on location.
According to Booking.com, their new payment solution, Payments by Booking.com, aims to address the concerns of vacation rental managers dealing with payment issues, cancellations, no-shows, fraudulent bookings, and chargebacks. The platform, which is designed to be user-friendly, is intended to help managers secure revenue, attract new guests, and reduce operational tasks. Booking.com’s solution is available in the US and globally, although eligibility for this payment solution is not guaranteed for all properties. If the platform performs as advertised, it could streamline vacation rental operations and provide managers with the advantages of secure revenue and guaranteed payouts.