Any knowledge of Hotel affiliate programmes

[Tom Rigden]

Hi all,

I am doing some research into affiliate activity within the hotel industry and wondered whether anyone could shed any light on how affiliates prefer to be paid commission. I have seen some offering percentages and others offering straight cash incentives. What type of commisions do you think affiliates prefer in this vertical?

Look forward to hearing your responses.

T

[quikfind]

Originally Posted by Tom Rigden Hi all, I am doing some research into affiliate activity within the hotel industry and wondered whether anyone could shed any light on how affiliates prefer to be paid commission. I have seen some offering percentages and others offering straight cash incentives. What type of commisions do you think affiliates prefer in this vertical? Look forward to hearing your responses. T

Hi Tom,
travel industry is a strange industry. The usual commissions are between 1-3% of the sales generated. incentives are also part of the affiliate game.

Personally i think the best is Pay Per Click (cause 4 out of 10 will buy a travel package - so better to get the clicks as an affiliate) and also some kind of incentives like free something or get xxx money and get a chance to win this or that
It has worked out so far us, our advertisers and affiliates.

regards
vasilis

[Keith]

Originally Posted by quikfind Hi Tom, The usual commissions are between 1-3% of the sales generated

I think you will find that hotels pay a good deal more than that, I suggest you talk to Dan Morley of Alpha Rooms or Morley Mouse as he is known on the forum.

[Azam.net]

We recently spent over 25 hours researching and writing a detailed report which addresses your precise question and if you'd like to us to share the results of our investigation for a fee you are welcome to contact us at info AT azam.biz

[quikfind]

Originally Posted by Keith I think you will find that hotels pay a good deal more than that, I suggest you talk to Dan Morley of Alpha Rooms or Morley Mouse as he is known on the forum.

Online reservation networks give around 1-5% and the commision (ex. form expedia.com worldress.com) than u can get from a hotel really depends on amount of reservations that you can send.

PS. Apart the internet businesses that we have as a company i personally have a Hotel In Kos Island Greece for the last 20 years :-)

[hirschnathan]

most pay a starting rate of 7%

[morleymouse]

hiya,

Cheers keith! Most online reservation programmes pay a %. I think it was lowcost who did try a % with one network and a fixed CPA with another, after a while they moved both to % so I guess that says something.

Working on a % though to help you get a better idea of what sort of commissions to expect you've got to know where you'r pushing and what sort of order values. For example if you target 1/2 night stays in london you might be looking at an average order value of £160. As city traffic is fairly expensive it can be tough to make it work as you rely on volume.

Target big family bookings to say Salou, Torremolinos etc and the average order values go from £600 > £1k+ giving you much better commission! How gutted would you feel if you did a £1500 booking and only got something like £25 CPA?

1-3% seems to be what the bigger tour operators offer, but their order values will be higher as flights, hotel, insurance, transfer etc are all in. So its a smaller % but of a bigger pie

For a more in depth report though have a word with Nadeem as I know he'll have put a lot of effort into it

[altyfc]

For hotels only, it is not difficult to find commissions in excess of 5%. (Where it's hotels and flights combined, commissions can be lower because there is usually far less to play with, with flights as opposed to hotels.)

And there there are some - like Travelodge - who play flat fee of £3.60, regardless of the booking value. Whilst this works out as great on a £15 booking, it's dismal when you take a booking for them for circa £400...

Personally, I think a % is the fairest way, and the method that would be most attractive to serious affiliates.

[fionam]

Hi Tom,

I know I emailed you but just remembered another tool which may come in handy for you - Affiliate Bounty (http://www.affiliatebounty.com/uk/). It's basically a directory of most affiliate programmes in the UK and you should find details of hotel programmes and their commission levels, networks etc on there. Pretty useful for any affiliate manager!

Also I would back up Morley Mouse in suggesting you get Nadeem's report - the man is a legend

Thanks!

Fi

[Tom Rigden]

Thanks for all the input guys - really helpful info!