Booking.com Damage Policies: No AirCover, What Now?

When transitioning from Airbnb to Booking.com, hosts often make a critical assumption: they assume Booking.com will protect them if a guest trashes the house.

This is a dangerous misconception. Booking.com does not have AirCover. They do not provide a blanket $3 million host guarantee. If a guest breaks a $500 TV and you do not have the proper policies in place, you will pay for it out of pocket.

To protect your property on Booking.com, you must explicitly set up a Damage Policy. Here is how to do it.

Option 1: The Booking.com "Damage Policy" (Recommended)

To streamline the booking process for guests (who hate paying large upfront deposits), Booking.com introduced the "Damage Policy" feature.

How it works:

1. You log into the Extranet.
2. Go to Property > Policies > Damage Policy.
3. You set a maximum damage amount (e.g., €250).
4. The guest does not pay this upfront. They simply agree to it during checkout.
5. If the guest breaks something during their stay, you have 14 days after checkout to submit a claim through the Extranet.
6. You upload photos of the damage and a receipt for the repair/replacement.
7. Booking.com steps in and charges the guest's credit card on your behalf, and transfers the money to you.

Pros: High conversion rate because guests don't pay upfront. Booking.com handles the collection. Cons: If the guest's credit card declines when Booking.com tries to charge it for the damage, it can be difficult to recover the funds.

Option 2: The Pre-Authorized Damage Deposit (via PMS)

If you do not trust Booking.com to collect the money after the fact, you can handle the deposit yourself. However, Booking.com will not collect an upfront damage deposit for you. You must collect it yourself.

To do this efficiently, you must use a Property Management System (PMS) connected to a payment processor like Stripe.

How it works:

1. In your Extranet Policies, you state that a €250 Damage Deposit is required prior to arrival.
2. Two days before check-in, your PMS (like BookBed) uses Stripe to place a €250 "Hold" (pre-authorization) on the guest's credit card.
3. The guest checks out.
4. If there is no damage, the PMS automatically releases the hold 3 days later.
5. If there is damage, you can capture the required funds directly through Stripe before the hold expires.

Pros: You are guaranteed to get the money because the funds are secured before the guest enters the house. Cons: Requires third-party software (PMS + Stripe).

Option 3: Collecting Cash Upon Arrival (Not Recommended)

The oldest method is stating in your listing that a €200 cash deposit is required upon check-in, which you hand back to the guest when they leave.

Pros: Cash is guaranteed. Cons: This is a terrible guest experience. Guests do not travel with large amounts of cash anymore. It also requires you to do an in-person key handover, completely defeating the purpose of automated self-check-in. Do not use this method in 2026.

Commercial STR Insurance (The Ultimate Backup)

Regardless of which damage policy you use on Booking.com, neither a €250 deposit nor the Booking.com Damage Policy will cover catastrophic damage (e.g., a guest starts a fire that burns down the kitchen).

If you are operating a vacation rental, your standard homeowner's insurance policy will explicitly deny coverage if they discover you were running a commercial short-term rental business.

You must purchase a dedicated Short-Term Rental insurance policy (from companies like Proper Insurance or Safely) to cover liability and major structural damage.

Further reading

• How Booking.com Payments Work
• Booking.com vs Airbnb: Which is Better?
• The Booking.com Extranet Explained

Frequently asked questions

How much commission does Booking.com charge hosts? Booking.com charges 15% commission on the total booking value, including cleaning fees. Unlike Airbnb's split-fee model, the guest pays no platform fee — the host absorbs the full commission. This means you need to price 10–15% higher on Booking.com to maintain the same net revenue.

How do I get started on Booking.com as a vacation rental host? Create an account on the Booking.com Extranet, add your property details, upload photos, set availability and pricing, and complete verification. The onboarding process typically takes 2–5 business days including property verification.

Can I sync my Booking.com and Airbnb calendars? Yes. Use a channel manager like BookBed to sync calendars automatically via iCal every 60 seconds. You can also manually import iCal feeds between platforms, but the sync interval is slower and you lose centralized management.