What Is an Affiliate Program?

Often, our next-door neighbours can be our best ambassadors. How? Through an referral program! 

Let's start with the most basic program we all host on a daily basis: booking OTAs like Booking.com, Expedia or Airbnb. How does it work? We make our accommodation available on the booking platforms and pay a commission for each of them. But why don't we do the same to increase the direct booking fee?

Stop and take a look around. Probably in your area there are dozens of restaurants, shops specializing in tourism, museums, tourist offices or even other hotel units. Dozens of places that receive a lot of tourists every day. Why not create a partnership with each of them to receive these same tourists in your accommodation? In the end we all work for the same right?

How do you create an affiliate program?

There are many ways to do it, but perhaps the most common is a commission agreement: for each reservation that is sent to us by a certain partner, we pay a commission. Let's see the following example: our room costs R100,00/night. If we offer a 5% commission to the partner, we will receive a total of R95,00. The same booking as Booking.com, we pay a 15% commission (in most cases), which means R15.00. We are talking about a saving of R10,00. So it may seem like little, but think about 10 bookings in the same way, and we're already talking about R100,00 of savings. I'm sure you're already doing the math. 

You can also opt for an exchange of services or integrated packages. The decision is yours. 

And all this with a simple conversation that you can have with that particular person, with whom you probably meet every day. Can you already see the advantages? I'm sure you can. 

How can your PMS be a great ally in creating these programs?

PMS RoomRaccoon is much more than just a booking management calendar. One of the most used tools is the creation of Discount Codes that can be used for reservations made through your website. However, this tool can also work for the creation of specific codes for partners that can be used to make reservations for their customers. One of our clients, located in the Peniche area, well known for surfing, carried out an Affiliate Program with all the surf schools in the area. The increase in direct booking fees was immediately evident. Ready to take another step in the management of your business?
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