Saturday, 18 July 2015

The new B&... Is Breakfast Included?





Is Breakfast included? That's a good question these days as more and more B&B's find it necessary to drop the Breakfast off the tariff. Why is the classic B&B under threat in the UK and how did this come about you might ask.

When guests make a reservation via Booking.com most are unaware that the hotel pays a minimum commission of 15% towards the reservation. This commission is based on the full price of the room regardless of the fact the hotel must also pay 20% VAT.

Therefore supposing a customer books a room for £100.  The B&B owner pays a VAT bill of £16.66. Then Booking.com takes a commission of 15% of the gross sale.   
So £100 x 15% = £15.

That leaves a total of £68.34 for the B&B owner to pay staff, utilities, maintenance, pick out some breakfast sausages and maybe a pint of beer.

Or as is the case skip the breakfast and keep the rest.  Thank you very little Booking.com for taking the B out of B&B.  Another fine British tradition bites the dust.

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