I’ve seen contracts set at 12%. TWELVE.
For pushing a button, bidding on the hotel’s own name, and then never touching bids or copy again. If it weren’t real, it’d almost be funny.
Now, I get it: for Pensione Maria with five rooms and a €30 ADR, the difference between pure CPC and a commission model is marginal.
But let’s look at a different scenario—luxury properties (which, incidentally, was the case for both of these prospects).
A boutique hotel in central Rome, 30 rooms, €600 ADR, 80% occupancy. That’s over €5M a year in revenue.
Twelve percent of that is €50K per month in potential firepower across Google, Microsoft, Metasearch, Streaming, OTAs.
A figure that no commission-based agency will ever spend, because it has zero incentive to do so.
Let’s say it clearly, once and for all: pay-for-performance is not a virtuous model. It’s a dependency mechanism.
The very same one you get furious about when Booking.com asks you for 18%.
Now—prove me wrong.
See you next week,
Simone
SIMONE PUORTO
