Booking.com, a popular hotel and holiday letting website, recently faced a payment glitch, which has left numerous holiday property owners unpaid. Here’s a simple breakdown:
- What Happened?
- Booking.com experienced a delay in passing payments to holiday let owners.
- This was due to an update in their system which took longer than anticipated.
- How does Booking.com Work?
- Property owners can list their accommodations on Booking.com without any initial fee.
- When guests book through the website, Booking.com handles reservations and later passes on the booking money to the owners, deducting a commission of about 15%.
- Real-world Impact:
- Many rely on this income, whether it’s small businesses or retirees.
- For instance, Becky Nicholls, an owner in St Ives, Cornwall, was owed £5,000. She had to switch her mortgage type to cope with her finances.
- Clare Parkinson, another owner in Cornwall, had to dip into her savings to meet daily expenses as she was owed the same amount.
- Chris Wiseman, who owns static caravans in Suffolk, relied on this income for retirement. Owing £5,000 since July, he’s now anxious about upcoming payments.
- Booking.com’s Communication:
- In June, Booking.com informed holiday home owners about a scheduled system maintenance from July 1-11.
- Payments from June 28 were to be processed by July 24 in one consolidated payment, with normal payouts resuming by July 27.
- However, many owners hadn’t received their payments even by mid-August.
- Affected Group:
- A Facebook group with almost 2,000 members from all over the world has formed, discussing owed payments.
- The delay affected owners not just in the UK but also in countries like Albania, Brazil, Germany, Iceland, Romania, Hungary, and Norway.
- Some owners are reportedly owed up to £70,000.
- Legal Action:
- Due to the prolonged delay, some property owners have initiated legal action against Booking.com.
- Neal Aga, a paralegal, issued a legal demand to recover £11,000 on behalf of two hotels and is offering free legal support to others affected.
- Booking.com’s Response:
- Booking.com apologized for the delay.
- They stated that while they had informed partners of the potential delay, the extended wait was unintentional.
- The company is in discussions with the affected parties to understand the impact and is looking for ways to provide support.
In short, a technical update on Booking.com’s platform inadvertently caused significant payment delays, deeply affecting many holiday let owners who rely on this income. The company is now working to resolve the issue and support affected property owners.