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A&O terminates parity in online channels and partially shifts commission

19 February 2014
19 Feb 2014 -

teaser_logo_AOHostels_160x110_10_5The constant increase of commissions by Online Travel Agencies (OTA’s), recently with a 20 per cent rise of the company hostelworld, has prompted A&O to terminate the rate parity on the web.

“We feel that consumers should pay more at those intermediaries that claim higher production costs. The continuous increase of commissions cannot solely develop to the hoteliers’ detriment”, explains Oliver Winter, General Manager at A&O Hotels and Hostels.

A&O has decided to pay 10 per cent of the commission. All additional commissions will be shifted to the released rate for each hotel and hostel. Thus, the differences of commission charges of online channels also lead to price differences. The channel manager ‘Autoupdate PMS‘ has been expanded accordingly by the feature ‘automatic commission apportionment on the rate’ on behalf of A&O.

“It is up to the customer now to decide whether to accept a higher rate in a portal, because it seems to offer a respective added value, or not. We hope that this development creates more competition and sensitivity among OTA’s. The hotelier is not defenseless; he or she can counteract those permanent commission increases very well by altering availabilities and varying rates”, Winter continues.

For further information on commission transfers please contact CEO Oliver Winter directly.

About A&O HOTELS and HOSTELS:

Founded in 2000, the A&O HOTELS and HOSTELS are currently Europe’s largest, independent hostel chain with 22 locations in 14 cities and three countries (Germany, Austria and the Czech Republic). The A&O group offers travellers 15.000 beds and registered more than 2.0 million overnight stays as well as a revenue of around 53.5 million in 2012. It is currently growing at around 20 percent a year; further locations are to be opened.