Caribbean Hotels Push Back Against Booking.com: Stop Charging Commissions on Government Taxes

CHTA is renewing its opposition as hotels in Jamaica and Antigua and Barbuda receive notices of a November 17 implementation date.

Caribbean hotels are renewing their challenge to a Booking.com commission policy that charges properties on money they collect for governments — adding to distribution costs without increasing hotel revenue.

The Caribbean Hotel and Tourism Association says recent notifications to hotels in Jamaica and Antigua and Barbuda have intensified concerns about the policy, which includes government-imposed taxes in the amount used to calculate commissions.

The association, representing 32 national hotel and tourism associations and their accommodation providers, has opposed the change since May. As we reported earlier this year, the dispute centers on whether taxes collected and passed along to governments should generate commission payments to the booking platform.

What Is Changing

According to CHTA, Booking.com updated its General Delivery Terms to include VAT, GST and other government-imposed taxes in its commissionable base.

The policy took effect May 15, 2026, in certain destinations. Hotels in other markets have received subsequent notices, including an implementation date for new bookings beginning November 17 in Jamaica and Antigua and Barbuda.

Booking.com describes the change as part of a “global standardization” of commission calculations, according to the association.

CHTA’s objection is straightforward: hotels must remit those taxes in full, and the money does not become hotel revenue.

“Taxes remitted to governments belong to those governments and sit outside hotel revenue,” said Sanovnik Destang, president of CHTA in a statement provided to Caribbean Journal. “Applying a commission to those funds raises the cost of distribution while hotel earnings remain unchanged. This is a matter of principle and fairness that affects accommodation providers across our region. CHTA will continue to advocate firmly for a fair and equitable resolution.”

Why Hotels Are Objecting

The additional expense comes from applying an existing commission percentage to a larger total.

In an illustration supplied by CHTA, a 15 percent commission on a room rate subject to a 12 percent government tax becomes an effective commission of 16.8 percent of the room’s pre-tax revenue. The stated commission rate remains unchanged.

The association says independent hotels and smaller properties face particular pressure because they operate with narrow margins. Hotels still owe governments the full tax amount while absorbing the additional distribution expense.

CHTA is also questioning consistency across markets. According to its review of Booking.com’s published terms, government taxes are excluded from commission calculations in the United States, with additional exclusions in Dubai and Egypt, while United Kingdom terms include taxes.

The association acknowledges that legislation and contracts differ by jurisdiction. It is seeking comparable treatment for Caribbean hotels and greater transparency about how the policy applies.

A Regional Response

National associations have begun responding through government discussions, direct engagement with Booking.com and guidance to members.

The Jamaica Hotel and Tourist Association has raised the issue with the Jamaican government, written formally to Booking.com and held an initial meeting with the company, according to CHTA.

In Barbados, the national hotel and tourism association has issued member guidance. The Turks and Caicos association has also provided guidance and publicly opposed the change.

CHTA says its earlier advocacy helped secure an exemption for destination fees in 2019, although concerns about commissions on employee tips and gratuities remained unresolved.

What Comes Next

The association is asking Booking.com to reconsider commissions on government taxes, explain differences between markets and engage with Caribbean hospitality stakeholders.

It is also reviewing legal and tax frameworks across the region and evaluating potential legislative protections for governments to consider.

“The Caribbean has been a committed and contributing partner in Booking.com’s regional growth,” said Vanessa Ledesma, CEO of CHTA. “It is because of that partnership that we are asking Booking.com to reconsider this policy and to work with Caribbean hospitality stakeholders toward a fair and equitable resolution.”