direct booking advantages

When it comes to booking accommodation, there are compelling reasons to book directly with hotels rather than using third-party booking sites. Let’s explore the benefits of direct bookings:

  • Exclusive Membership Rates: Hotels often offer special rates to their loyal members. 
  • Free Night Stays with Membership Points: Many hotel loyalty programs reward direct bookings with points that accumulate over time
  • Increased Chance of Free Room Upgrades: When you book directly, you have a better chance of securing that coveted room upgrade.
  • Exclusive Packages Offering Discounts and Amenity Credits: Hotels create special packages that include additional amenities such as spa credits, dining vouchers, or other perks.
  • Improved Customer Service: Booking directly allows for a more personalized service.
  • Up-to-Date Listings and Hotel Announcements: When you book directly, you receive the most current information about the hotel.

When you book a hotel room through an online travel agency (OTA) in Australia, the money you pay goes through the following path:

  1. You pay the OTA the full price of your stay.
  2. The OTA takes a commission from the hotel, which is typically around 15%.
  3. The OTA then pays the hotel the remaining balance.

The OTA avoids paying tax on the commission they earn from the hotel. This is because the commission is considered to be a service fee, and service fees are not subject to GST in Australia.

In 2021, the Australian government estimated that OTAs avoided paying $130 million in GST by not declaring their commissions as taxable income.

Here is an example of how much tax an OTA might avoid by not declaring their commissions as taxable income:

  • You book a hotel room for $1,000.
  • The OTA takes a commission of $150.
  • The OTA pays the hotel $850.
  • The OTA avoids paying $13.50 in GST on the $150 commission.

If you are considering booking a hotel room through an OTA, it is important to be aware of the potential tax implications. By booking directly with the hotel, you can ensure that your money is taxed properly and that you are supporting the local economy.

Here are some tips for booking directly with a hotel in Australia:

  • Check the hotel’s website first. This is often the best place to find the best rates and special offers.
  • Be flexible with your dates. If you’re flexible with your dates, you’re more likely to find a good deal.
  • Book early. The earlier you book, the more likely you are to get a good rate.
  • Call the hotel directly. Sometimes you can get a better deal by calling the hotel directly.

By following these tips, you can save money and support the local economy by booking directly with a hotel in Australia.

Save up to 35% on your next hotel stay!

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By signing up to our free mailing list you will receive exclusive discounts and rewards when you book directly with hotels.

Not only will you save money, but you’ll also be supporting local businesses and keeping your money in Australia.

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Here are just a few of the benefits of booking directly with hotels:

  1. Save up to 35% on your stay
  2. Support local businesses
  3. Keep your money in Australia
  4. Earn exclusive rewards
  5. Enjoy a more personalized experience
  6. Don’t miss out on these amazing benefits! Sign up for our free mailing list today and start saving!