Commissions of 15% to 19% are a major reason key Australian hoteliers say they have adopted a wait and see attitude before embracing Expedia Traveler Preference (ETP), which gives customers the option of paying immediately or at the hotel instead.

Expedia, which previously required immediate payment from its customers, argues that the new commission structure is justified because ETP delivers extra value through higher booking conversion rates.

But hoteliers, especially those with a strong domestic customer base now paying Expedia 10% commission for local bookings made inside 28 days and 25% for international sales, remain wary.

With ETP Expedia is asking for 17%-19% commission from properties in primary markets (depending on scale) and 15% for regional properties.



One said: "At this stage we don't see any value or urgency in taking up their kind invitation". Another revenue manger said he would not be signing his group.

Meanwhile, Toga Hotels, which owns and manages 54 properties, said it will ensure the scheme is financially viable before proceeding.

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