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Will Booking.com’s Hungarian Hosts Finally Get Paid?
06.12.2023 - 04:29 / skift.com / Dennis Schaal / Francis Davidson
Hungary’s short-term rental hosts who offer their properties on Amsterdam-based Booking.com haven’t been paid for several months, leaving some having to decide whether they’ll need to shutter their businesses, according to published reports.
Among the latest developments, regulatory authorities in Hungary initiated a complaint process against Booking, charging that a majority of hosts in the country haven’t been paid money due. Meanwhile, a member of the European Parliament, István Ujhelyi, who sits on its travel and tourism committee, said he discussed the matter with Booking.com, and that short-term rental providers would receive their payments next week, according to Daily News Hungary.
A Booking Holdings spokesperson said last week that the delayed payments had been tied to updates to the company’s payments system, and that providers had been notified that there would be a delay in payments. Press reports indicated that the payment system updates were to take place from July 1 to July 11, and that payments would resume July 24.
However, the lag in payments appears to have been more protracted than previously announced, causing financial hardship for Booking.com’s hosts in Hungary.
We reached out to Booking.com for an update on the situation but didn’t get an immediate answer.
The Hawaiian island of Oahu suspended its rule that limits short-term rentals to a 30-day minimum in a bid to assist Maui residents displaced by the wildfires, Hawaii News Now reported.
Meanwhile, Airbnb implemented its extenuating circumstances policy for Maui, enabling guests with eligible reservations to cancel their stays and get a full refund. Hosts likewise can cancel stays without incurring any fees.
During the pandemic, Sonder, like many of its peers, found itself saddled with plenty of burdensome master leases for multi-family buildings that led to lots of cash burn and hampered its flexibility. Today, the San Francisco-based company’s portfolio is roughly 60% apartment-style properties and 40% hotels, and the company sees the latter as a huge opportunity.
Sonder launched its first hotel collection, Powered by Sonder, a few weeks ago, and CEO Francis Davidson touted the upside of the business model with these independent hotels during its recent earnings call. Among the advantages is Sonder can turn these deals around and begin to operate the properties much quicker than the 2-3 years it often takes to get a multi-family building up and running.
“So Powered by Sonder allows us to operate these hotels, to bring in our technology, to bring in our operations,” Davidson said. “But without having to redesign the whole thing, if it already is really interesting and distinctive and beautiful and has its own identity.
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
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