The Caribbean’s hotel sector is protesting strongly against a new Booking.com policy that regional tourism leaders say could raise hotel costs across the region.
In a sharply worded letter to Matthias Schmid, Senior Vice President of Accommodations at Booking Holdings: Caribbean Hotel and Tourism Association (CHTA) Opposed to a reported policy change that would apply a fee to the total booking amount, including government-imposed taxes such as VAT and GST.
The changes are expected to come into effect in May 2026 and have already been confirmed by hotel operators in destinations including Barbados, Grenada, Jamaica and Trinidad and Tobago, according to the letter.
Why Caribbean Hotels Are Concerned
At the heart of the dispute is a long-standing industry practice. Hotels have traditionally paid commissions to online travel agencies only on room revenue, not on taxes collected on behalf of the government.
CHTA says taxes such as VAT and GST are “statutory pass-through amounts” that hotels must pay in full and are not revenue for the hotels themselves.
The organization argues that applying the fee to that tax amount effectively increases Booking.com’s actual commission rate without formally changing the key rate hotels are charged.
In the letter, CHTA said the move could raise legal and compliance issues in jurisdictions where taxes must be calculated separately and remitted in full to the government.
Pressure on Caribbean Tourism
Local hotel groups have warned that the policy could have a significant impact on Caribbean tourism businesses, which already face high operating costs and a heavy tax burden.
According to CHTA, the new commission structure could reduce hotel margins, put upward pressure on room rates and change the balance between direct bookings and intermediary distribution channels.
The organization also said similar policy changes in the past have caused some Caribbean hotels to reconsider their participation in booking platforms and adjust their pricing strategies.
CHTA also argued that the impact would extend beyond the hotels themselves, potentially affecting tourism workers, real estate reinvestment and overall destination competitiveness.
CHTA wants the policy stopped
The association is demanding that Booking.com stop enforcing the policy in the Caribbean and keep government-imposed taxes fee-free.
The group also requested to speak directly with Booking.com senior management.
“We urge you to reconsider this approach and work with us to find solutions that are fair, transparent and sustainable for all parties,” CHTA President Sanovnik Destang wrote in the letter.
CHTA said if the issue is not yet resolved, it may engage local governments, tax authorities and other stakeholders to assess broader impacts and possible responses.
