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Affiliate payment delays

Collecting payment for hotel bookings

         

netbabs

6:49 am on Jan 23, 2007 (gmt 0)

10+ Year Member




I signed up for one hotel affiliate program during the last quarter of 2005. My commission had accumulated to $1400 (as of dec 2006). However, their payment rate is very poor. They DONT pay me right after the guests have checked out. The merchant says it takes more time for them to collect money from each hotel. They have not even paid me for some bookings done in 2005.

Initially, I tolerated this since I was a newbie to online travel industry and assumed it would be a norm.

Why not WW members form an industry association to prevent affiliates being treated this way?

cornwall

9:11 am on Jan 23, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The only "real" money in this exercise is the money that the guest pays the hotel for a nights accommodation. The guest pays the hotel, not the affiliate program.

No way will the hotel pay a commission to the affiliate program until the guest has been and paid. The guest has the right to cancel up to a defined number of hours before booked arrival, so will not necessarily actually arrive at the hotel. This is quite a high number who cancel

After that not all hotels pay the commissions due to the affiliate program. You can do a SE search to find the industry figure for non-payment of commissions, its quite high. I get a weekly list of hotels to remove from my web sites, from my affiliate program, and these are the non-payers in many instances.

So at the end of the day you can, and will, only get paid for money that you have actually generated in the coffers of the affiliate program.

netbabs

3:36 am on Jan 24, 2007 (gmt 0)

10+ Year Member



I understand cancellation rate is high. The problem is that even after 6 or 8 months after the check-in date, affiliate stats *DONT* indicate whether booking has been cancelled or NOT and the payment also remains uncollected.

> No way will the hotel pay a commission to the affiliate program until
> the guest has been and paid. The guest has the right to cancel up to a
> defined number of hours before booked arrival, so will not necessarily
> actually arrive at the hotel. This is quite a high number who cancel
>

LifeinAsia

4:57 pm on Jan 24, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



As someone who has been in this industry for a number of years (started 1998 as an affiliate, added direct contracts with hotels in 2000), let me tell you that your experience is NOT uncommon. Some hotels, especially hotels in Asia are notoriously late in payments, and sometimes never pay at all.

Your affiliate program, if it's good, should provide some sort of "confidence" score based on the payment history of each hotel.

There are 2 main payment models in the hotel industry: commissions and pre-payment. With commissions, the guest pays the hotel, the travel agency or reservations company periodically (usually monthly) bills the hotel for commissions, the hotel pays the agency for the reservations that actually showed up. Some delay payments for several months until they are satisfied the guest isn't going to issue a chargeback. Other times, the guest is actively disputing the bill, so the hotel doesn't get payment for months (or ever). Very basic idea: until/unless the hotel gets paid, the agency doesn't get a commission, and the affiliate doesn't get his/her cut.

For pre-payment, the agency collects the money from the customer then pays the hotel. In these cases, the agency usually pays the their affiliates for these reservations at the end of the month the guest checks in.

In addition to this, of course, are instances of fraud by the hotel (the guest checks in, but the hotel says he's a no-show to avoid paying the commission).

netbabs

1:25 pm on Jan 25, 2007 (gmt 0)

10+ Year Member



> As someone who has been in this industry for a number of years
> (started 1998 as an affiliate, added direct contracts with hotels

Direct contracts with hotels is a good idea. But I think I need to do more traffic-building exercise for 2007 before entering direct contracts.

I hope affiliates form a stronger network to raise their concerns to travel associations like IATA so that hotels don't cheat or delay payment.

cornwall

10:22 pm on Jan 25, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Affiliate schemes themselves are somewhat less than clear as to what they actually pay you

[webmasterworld.com...]

This thread had a discussion on the somewhat opaque structure of HotelClub's program for affiliates.

netbabs

2:31 pm on Jan 26, 2007 (gmt 0)

10+ Year Member




Thanks to Cornwall for reminding me about hotelclub. I signed up first with hotelclub in late 2005 but switched over to allrez by dec. 2005.

I removed most of the booking links to hotelclub because they put distracting banners. I just logged in to find $46 as balance(may be due to residual links). Otherwise, Hotelclub has a nice interface.

Whereas, issues with allrez are payment schedule and mediocre booking interface.

Still hunting for a good, reliable hotel affiliate program with XML interface and datafeeds....

LifeinAsia

4:17 pm on Jan 26, 2007 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



TravelNow (IAC) has XML/data feeds. Reliable? Well... I haven't had problems with payments. However, for many months I received zero response from support through either their affiliate program or their customer support e-mail. (Not very nice when you have customers complaining to YOU about their bookings through them.) Since then, I have gotten responses and they appear to be improving things.

My other complaint is that they seem to make tweaks to their XML every few months. Some are enhancements, but some are you-must-upgrade-this-feature "enhancements." Very annoying as I don't like having to go back and tweak then retest my code every few months. I'll tweak and recheck my code due to MY enhancements and on MY time schedule, thank you very much!

netbabs

12:20 pm on Jan 28, 2007 (gmt 0)

10+ Year Member



I did signup with IAN.COM last year because they promised XML feeds. After signup, their website said the affiliate should send an email request for XML feed. However, nobody replied to my request. I found out the support team was totally inactive.

Maybe, I should try again since LifeInAsia is getting replies from the support team.

cornwall

12:28 pm on Jan 28, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I must say that I took most of my business away from Ian.com a couple of years ago because they never bothered to reply to any of my emails.

It beats me why these organisations cannot either reply or tell you by canned reply that they are too busy. If it is a void, I am afraid I loose patience.