Commissions are a real obstacle to foster and grow a place of business at the tourism sector. They not only make the product be more expensive, but also are a great handicap concerning to competition issues, because keeping the balance between the commission and competitiveness is very difficult, specially when you have to compete with other establishments raising or lowering the percentage of commission for getting a good position in the reserve sites.
Furthermore, taxes such as VAT, or the corporation tax have to be added. At a time of economic crisis and given the current recession, the increase in these rates has been more a hindrance for tourism enterprises.
That’s why the payment of commissions is a handicap that makes it practically unfeasible sustaining this type of business. Therefore, it is essential to reduce spending on commissions to successfully thrive in, especially now when, getting it, is as difficult as important.
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