Booking Holdings' fee structure under regulator probe as hotels pay for higher rankings

Booking Holdings and Expedia allow hotels to boost their positions in search results by paying additional commission. Booking’s "Accelerator" and "Preferred Partner" programs let properties choose extra commission for specific dates and markets, showing the expected ranking shift before payment. Expedia offers a similar slider tool. Italy’s regulator opened a new investigation in 2026, questioning whether such paid visibility makes higher‑paying hotels appear better to travelers.

Booking’s 2026 earnings report shows a rapid shift from an agency to a merchant model. Merchant revenue rose 26.7% to $3.70 billion, while agency revenue fell 2.3% to $1.53 billion. Deferred merchant bookings – money held from travelers before the company fulfills its obligations – increased to $8.2 billion, up from $6.9 billion a year earlier. This highlights how the platform holds large sums of hotel‑related funds before passing them on.