A commission is the share of each booking that a platform retains for connecting host and guest. Different platforms bill it differently — at the time of booking, at check-out, or via a monthly statement. Here's how the mechanics commonly work.
On most platforms, the commission is calculated on the gross booking value — that's nightly rate × nights, plus cleaning fees, before taxes. The platform then either deducts the commission before paying the host, or invoices the host periodically.
Whether a platform also charges the guest a service fee determines whether the model is host-only or split. In a host-only model the platform's revenue comes entirely from one side of the transaction; in a split model both sides contribute. Both models can produce similar revenue for the platform but feel different to the participants.
BookingOnABudget.com uses a host-only model: 5% of the booking total goes to the platform, 95% goes to the host (less host-side payment processing). Guests pay no service fee. This is shared as context — actual outcomes depend on each platform's current terms.