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A headline commission of 15% to 22% is rarely what a holiday let costs to run. Most booking agencies add VAT to the rate, and their fee covers marketing and bookings only, so the owner still pays for cleaning, linen, maintenance and someone to deal with guests at the property. A management company such as Sea Breeze, at a flat 16% of booking revenue, takes the guests and the day-to-day running off the owner's hands, though the cleaning, linen and repairs themselves are still paid for separately. To compare fairly, add up every cost on the same assumed bookings.
Two models behind the word "agency"
A booking or marketing agency lists the property, takes bookings, collects payment and sets prices. Sykes's published standard terms describe exactly this: marketing and advertising, accepting bookings, collecting payments and managing the price, with other services at extra cost. The owner, or a housekeeper the owner pays, does the changeovers, the linen, the repairs and the call when a guest cannot open the key safe.
A management company runs the operation for the owner. With Sea Breeze that means listings on Airbnb, Booking.com, Vrbo and 20+ channels, pricing reviewed daily, guest messaging, check-ins, inspections, 24/7 guest support, and arranging and coordinating cleaning, linen and maintenance through trusted local companies that the owner pays directly.
Many management companies still charge cleaning and linen on top, Sea Breeze included. Pass the Keys, for example, publishes a management fee from 18% plus VAT of Net Booking Value and states that cleaning, linen and consumables are not included in it. The label on the company matters less than the list of what the fee covers.
What the published rates are
| Model | Published rate | VAT | |
|---|---|---|---|
| Sykes Holiday Cottages | Booking agency, managed packages extra | 18% to 22% | Plus VAT |
| Pass the Keys | Full service, cleaning and linen extra | From 18% of Net Booking Value; 20% standard in the South West | Plus VAT |
| Sea Breeze | Management; cleaning and linen paid separately to recommended companies | A flat 16% of booking revenue | Confirmed in writing before you sign |
All rates were read from each company's own pages on 30 September 2026. Both Sykes and Pass the Keys say the rate for a given property depends on location, service and owner use. The full comparisons are at Sykes vs Sea Breeze and Pass the Keys vs Sea Breeze.
Check what the percentage is taken from. Pass the Keys defines Net Booking Value as the guest payment less the booking platform's commission. Sea Breeze charges on booking revenue and confirms in writing, before you sign, exactly which figure that is. A rate on the gross guest payment costs more than the same rate on a net figure.
What sits on top of the headline rate
VAT on commission. The standard rate of VAT is 20%. An owner who is not VAT registered cannot reclaim it, so an 18% fee costs 21.6%, a 20% fee costs 24% and a 22% fee costs 26.4%.
Cleaning and linen. Under a booking agency, the owner arranges and pays for them. Under some managers they are invoiced at cost. A guest cleaning fee often covers some or all of the clean. Sea Breeze does neither itself: it recommends trusted local cleaning and linen companies, the owner pays them directly, and Sea Breeze arranges and coordinates them if the owner wants. Owners can keep their own cleaner instead.
Consumables. Pass the Keys charges a consumables fee per booking, by number of beds. Others fold them into cleaning or leave them to the owner.
Set-up and onboarding. Sykes's terms provide for a set-up fee and an annual fee; the amounts are in each owner's key terms page and are not published. Pass the Keys states an onboarding fee of typically £149, with an initial clean deducted from the first invoice. Sea Breeze's onboarding fee is one-off, not charged up front, deducted from the first month's income, and covers photography, listing creation and a set-up visit. It is quoted for the property before the owner signs.
Owner stays. Sykes's terms set a personal booking allowance; going over it can be charged at the commission Sykes would have earned. Sea Breeze owners block dates in the owner portal and pay for the clean after their stay.
Payment processing and damage cover. Neither Sykes nor Pass the Keys publishes a separate card processing charge to owners on the pages we checked, so ask. For bookings outside Airbnb, Pass the Keys uses a damage protection provider with a waiver or deposit paid by the guest. Sea Breeze uses the platforms' own screening and damage protection where it applies, such as Airbnb's AirCover for Hosts.
Exit terms. Sykes's terms ask for six months' written notice and for bookings in the following 12 months to be honoured, with an early cancellation fee that is not published. Pass the Keys asks for a six-month initial term, then one month's notice. Sea Breeze asks for 45 days, and bookings already taken are honoured or the owner pays the cancellation cost.
A worked example
Illustration only. The figures below are round numbers chosen to show the arithmetic. They are not market data, not a quote and not Sea Breeze results. Assume £30,000 of bookings in a year, 40 changeovers, a clean at £60 and linen at £15 a changeover, the same on both sides, and an owner who is not VAT registered.
| For illustration | Booking agency at 20% plus VAT | Sea Breeze at 16% |
|---|---|---|
| Commission | £6,000 | £4,800 |
| VAT on commission | £1,200 | Any VAT confirmed in writing before you sign |
| Cleaning, 40 at £60 | £2,400 | £2,400 |
| Linen, 40 at £15 | £600 | £600 |
| Guest calls, keys, call-outs | The owner's time, or a housekeeper's fee | Included |
| Total of the priced lines | £10,200 | £7,800, plus any VAT |
At the same illustrative bookings, 15% plus VAT is £5,400 of commission and VAT, and 22% plus VAT is £7,920. The platforms' own fees apply under every model: Airbnb's help centre says most hosts on its single-fee structure pay 15.5%.
The line that does not price easily is the unpriced one. Under a booking agency, the owner is still the person a guest or a cleaner calls. Our comparison of self-managing vs full service describes that work in detail.
How to compare two quotes
Ask each company for a written breakdown on the same assumed bookings, and check:
- the rate, and whether VAT is added
- what the rate is taken from: gross guest payment or a net figure
- who cleans, who supplies linen, and how both are charged
- set-up, annual and consumables fees
- charges for your own stays
- who answers guests at night and who attends the property
- the notice period and what happens to future bookings
Then compare total cost, not the headline. Our charges are set out on the pricing page, and the full scope of the service is on the holiday let management page.
When a booking agency is the right choice
A booking agency suits an owner who lives near the property, already has a reliable cleaner and wants a national brand's audience without handing over the day-to-day work. It also suits owners outside Dorset and Hampshire, where Sea Breeze does not operate. For an owner who lives away or wants the property run for them, a management company can cost less in total once the extras are counted. Run the sum above with your own quotes to find out.
