The terms 'booking fee', 'service fee', 'host fee', and 'commission' are often used loosely. This page provides clear definitions and shows how each fits into a platform's pricing model.
A booking fee (also called a guest service fee) is a charge a platform adds to the guest's total at checkout, on top of the nightly rate. It is separate from cleaning fees and taxes. A host fee, or commission, is the opposite: it is deducted from the host's payout instead.
A 'booking fee' generally refers to a charge added to the guest's total. A 'host fee' or 'commission' refers to a charge deducted from the host's payout. Some platforms use only one; others use both. The total platform revenue can be similar across both models.
Knowing which side pays which fee matters for hosts setting prices and for guests comparing platforms. A platform with no guest fee may compensate via a higher host commission, and vice versa.
BookingOnABudget.com uses host fees only: 5% commission to hosts, 0% booking fee to guests. The figures here are descriptive — outcomes on any platform depend on its current terms.