The Caribbean's Biggest Hotel Group Just Pushed Back Hard Against This Online Booking Giant's New Policy
The CHTA is urging Booking.com to reverse a policy change that would apply commissions to government-imposed taxes on hotel bookings.
The Caribbean Hotel and Tourism Association is pushing back against a new Booking.com policy that hotel operators across the region say could raise their costs significantly.
In a letter sent to Booking Holdings Senior Vice President of Accommodations Matthias Schmid, CHTA objected to a policy change that would apply the platform's commissions to the total booking amount — including government-imposed taxes like VAT and GST. The change is expected to take effect in May 2026 and has already been confirmed by hotel operators in Barbados, Grenada, Jamaica, and Trinidad and Tobago.
Hotels have traditionally paid commissions to online travel agencies only on room revenue, not on taxes collected on behalf of governments. CHTA argues that taxes are statutory pass-through amounts that hotels must remit in full, and that applying commissions to those figures effectively increases Booking.com's real commission rate without changing the headline percentage.
Margin Pressure at a Tough Time
The association warned that the policy could compress margins for Caribbean hotels already facing high operating costs and heavy tax burdens. CHTA said the new structure could put upward pressure on room rates, alter the balance between direct bookings and third-party distribution, and ultimately affect tourism workers, reinvestment in properties, and destination competitiveness.
The organization also noted that similar policy changes in the past prompted some Caribbean hotels to reconsider their participation on booking platforms and adjust pricing strategies.
CHTA President Sanovnik Destang called on Booking.com to suspend implementation of the policy in the Caribbean and confirm that government-imposed taxes will remain non-commissionable. The group also requested direct talks with senior Booking.com leadership, and said it could engage regional governments and tax authorities if the issue remains unresolved.
The dispute highlights a growing tension between Caribbean hospitality operators and the large online travel agencies that control a significant share of bookings in the region.