AOT increases hotel commissions

AOT increases hotel commissions

AOT Group has announced it will increase the commissions on all rooms sold via its NeeditNow.com.au from 10% to 15%, in line with other OTA’s in the region.

According to traveltrends.biz, AOT confirmed the changes yesterday to the news site after advising key hotel suppliers of the increase, which came into effect on 1 June.

“With the consolidation of the online travel agent space, commission levels and distribution costs have increased and we wish to bring all suppliers in line with the industry standard of 15%,” AOT told suppliers, according to Travel Trends.

AOT Group is Australia’s largest inbound tour operator and wholesaler and was recently awarded the Whole of Government accommodation contract. Despite a small consumer audience, NeeditNow provides dynamic rates to government employees.

The move follows recent commission increases from Booking.com and others, highlighting the folly of the ACCC’s claims that Expedia’s acquisition of Wotif late last year would have no impact on commissions.

Per the report, the hike in commissions has upset hoteliers, however COO Cinzia Burnes said most contracted hotels had already been paying the 15%, and the increase was only to bring those paying 10% up to speed.

The move comes after Qantas’s hooroo also increased commissions last month, and follows numerous calls from accommodation bodies to the ACCC to wield its power against allowing the Expedia Wotif merger last year creating a duopoly in the OTA marketplace in the region.

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