Column: Simon Cotton, Managing director, HRH Group - The scourge of commissions!

​Putting aside unprecedented events like Covid, the ongoing cost of living crisis keeps taking it’s toll on businesses in our sector being able to turn a decent profit.

There’s some that don’t like to talk about profit, but for me it’s not something I’m afraid to mention; ultimately a business has to make one or it’s not in business for very much longer so let’s not shy away from it.

So, if a well-run business makes a profit, it needs a ‘very’ well run business to make a profit and enough to reinvest continually, in both it’s people and it’s product.

So why am I writing about this?

Well as I do regularly, I’ve been looking at where we spend our money in an attempt to improve that margin whilst not charging more to our customers; something that all good hospitality operators do regularly I’m sure.

And whilst I knew we paid out huge commissions to third parties to help drive the business, I’m not sure the general public know what share of their hard-earned money is being siphoned off simply by the click of a button?

Don’t get me wrong on this matter, these online agents are a necessary evil and in turn I respect that they have to make enough to reinvest and stay at the top of their game in their own sector.

But, unlike booking theatre or show tickets where you often see a booking fee added on after the ticket price (something I know makes many people mad), the same is happening for every hotel room, airline seat, train ticket and even something as simple as a restaurant booking.

Take a hotel bedroom at £150 a night.

The customer books two nights on a very well known website that does ‘bookings’.

When you click the button to confirm, I wonder how many people would expect almost £60 of that booking to be taken by them as their fee?

Similarly, most of the online table reservation booking engines charge per cover, so this can start adding up very quickly if you’re booking a larger table.

My advice is to search for your hotel or indeed local restaurant online and use it as a tool to help find what you’re looking for and then when you’ve made your choice, pick up the phone or head to their direct website and make the booking there.

It’ll not change the price you pay, but the money you spend will ultimately end up with that business and you’d be amazed at how grateful that makes them.

On many occasions, I’ve received room upgrades or better tables in restaurants just by booking direct; plus it gives you that warmer feeling of connecting with that hospitality business too.

OK, rant over…. I’m off to enjoy all that Harrogate offers.

Having been to the GYS, HIF Crime Writers and Carnival.

I hope you’re enjoying the summer and whatever you find to do, just try booking direct, but above all, have a good one and stay safe.