Turkey Introduces 17% Commission Cap and 5 Million TRY Requirement for Booking and Airbnb

A new regulation is on the agenda for foreign accommodation platforms operating in Turkey. The bill submitted to the Turkish Grand National Assembly (TBMM) includes rules that will reshape the activities of platforms like Booking and Airbnb. The proposal requires these platforms to obtain a permit and meet a financial requirement of 5 million TRY. Additionally, foreign platforms will be required to have a representative in Turkey. The most notable aspect of the regulation is the introduction of a cap on the commission rate that can be charged from accommodation sales. According to the proposal, the commission that these platforms can charge from hotels will be limited to 17%. This move aims to reduce the costs of hotel operators and balance competition in the sector, as current commission rates are known to be much higher. The bill also aims to guarantee hotels' freedom to set their own prices. Hotels will be able to determine their prices independently across different sales channels. This is seen as an important step in preventing platforms from applying price equalization or pressure. As a result, hotels are expected to offer more competitive prices through their own websites or direct sales channels. With the introduction of the new rules, the costs of foreign platforms' operations in Turkey may increase, and compliance processes may come into play. Sector representatives state that the regulation will protect local hoteliers and contribute to keeping tourism revenues in the country. However, the details of the implementation and the transition process have not been clarified yet. This is not an investment advice.