A Strategic and Practical Guide for 2026

On 1 January 2026, the VAT on accommodation in the Netherlands will increase from 9% to 21%. A significant change that affects every Dutch hotel, From small independents to larger chains. The shift is already creating movement in the sector, especially now that more hotels are reassessing their pricing structures. It has also become a hot topic in the media. 

At Smarthotel, we speak to hoteliers every day who are struggling with the same questions: 

How should we adjust our rates? What happens to OTA commissions? How do we handle existing bookings? And how do we explain the changes to guests without giving the impression that prices are being “manipulated”? 

This blog provides a clear, practical overview of what is changing, the biggest risks and opportunities, and how to prepare your hotel. 

What Exactly Is Changing? 

The VAT on accommodation will increase to 21% on 1 January 2026. Until 31 December 2025, accommodation still falls under the reduced VAT rate of 9%. 

Important: services such as breakfast, wellness, restaurants, and leisure activities remain at 9%. That explains why some hotels are shifting price components: increasing breakfast and service charges (9%) while lowering the room rate (21%). This is allowed, but only if the value allocation is commercially defensible. The Dutch Tax Authority will look closely at reasonableness. An overnight stay where breakfast suddenly costs €30 without any change in quality or offering is difficult to justify. 

The Financial Impact in Practice 

The VAT increase isn’t just an administrative change; it alters your margin structure. Below are three scenarios for different ADR levels: 

Scenario 1 – ADR €150 (incl. 9% VAT) 

Net revenue: €150 / 1.09 = €137.61 
New price to maintain net revenue: €137.61 × 1.21 = €166.51 
→ + €16.51 per night 

Scenario 2 – ADR €200 (incl. 9% VAT) 

Net revenue: €200 / 1.09 = €183.49 
New price to maintain net revenue: €183.49 × 1.21 = €222.02 
→ + €22.02 per night 

Scenario 3 – ADR €300 (incl. 9% VAT) 

Net revenue: €300 / 1.09 = €275.23 
New price to maintain net revenue: €275.23 × 1.21 = €332.03 
→ + €32.03 per night 

Many hotels hesitate to pass on the full increase. But partial adjustments immediately reduce margins. With 30 rooms and 75–80% occupancy, this can amount to thousands of euros per month. 

Why Many Hotels Are Revising Their Pricing Strategy 

The increase forces hotels to reconsider their entire pricing structure. It’s not just the room price. It’s the full package that needs rebalancing. 

Some hotels slightly reduce the room rate and increase service charges that remain at 9%. Others create new packages or restructure existing ones to present value more clearly to guests. 

While this may look like simple adjustments, it’s a strategic decision. The relationship between room rates, services, bundles, and distribution channels must be re-evaluated. 

Additionally, OTA commissions rise along with your gross room price. 
For example, with an 18% commission, a €200 room moves from €36 to nearly €40 in commission. That means a double margin impact. This makes direct bookings even more attractive and encourages hotels to rethink their distribution mix. 

Revenue managers should also consider new psychological price points. A room priced at €199 will soon become €219 or higher. The effect on conversion and occupancy varies per target group, but it requires recalibration across the board. 

Impact on Guests and the Guest Experience 

For guests, the higher room price is the first thing they’ll notice. But how you communicate the change can be the difference between understanding and frustration. 

What Will Guests Notice? 

• Higher room prices 
• A changed relationship between room rate and breakfast 
• Variations in packages or included extras 
• Differences between channels (if changes aren’t applied consistently) 

Risks 

The biggest risks lie not in the increase itself, but in perception. If the bill looks different or prices vary across channels, guests may feel confused. Front-desk teams may receive more questions such as: 

• “Why is breakfast suddenly more expensive?” 
• “Why is this different on Booking.com than on your website?” 

This can lead to discussions, extra workload, and ultimately lower review scores. 

Opportunities 

Hotels that communicate clearly and transparently can use this moment to build trust. Explaining what is changing, why, and how prices are now structured creates understanding. 

It is also a great opportunity to redesign packages. Smartly combined bundles can feel more attractive than separate components, even if the total price is higher. 

Additional Opportunity: Direct Bookings Become More Attractive 

Many hotels focus on direct costs but forget that OTA commissions also increase with the VAT rise. This creates a natural moment to steer more guests towards direct channels, for example through: 

• Exclusive packages available only when booking direct 
• Extras such as breakfast or late checkout for direct bookers 
• Clearer pricing communication on your own website 
• Renewed focus on loyalty 

Hotels that strengthen their direct booking strategy reduce the impact of rising commissions and maintain tighter control over guest relationships. 

What Hoteliers Should Do Now (November → January) 

Since it’s already late November, you don’t have months to prepare. But, the key steps still fit within the coming weeks.

November – December

• Recalculate pricing models (where do you lose margin, where do you gain?) 
• Reassess price levels based on your ADR and target audience 
• Rewrite packages and define value clearly
• Determine new gross prices for OTAs, direct, and corporate
• Check: how will we process existing bookings from 1 January onwards

December – January

• Update all systems (PMS, Channel Manager, Booking Engine, Payments) 
• Train staff—especially front desk—on explaining the new pricing 
• Prepare guest communication for January arrivals 
• Notify OTAs of updated rates and packages 

By 1 January 2026, everything must run smoothly. 

The Role of Our Software in This Transition 

The VAT increase affects how rates are transmitted and processed, but for most hotels working with Smarthotel, little will change in the technical setup. In practice, room prices sent from the PMS are, in most cases, received by Smarthotel including VAT, and we pass these prices directly through to OTA channels. As long as the prices in the PMS are correctly configured for 2026, no adjustments are required on the Smarthotel side. 

For hotels using our Smart Booking Engine, we have a date-based setting that allows us to update the VAT percentage for you from 1 January 2026. This ensures a smooth transition and accurate pricing on your booking website. 

If you do not work with VAT-inclusive prices in your PMS, or if VAT percentages are set (partially) manually in Smarthotel, then adjustments may be necessary. In that case, please contact our support team so we can check together whether your setup is ready for the new VAT structure.

If you have questions, feel free to reach out to our support team. 

Conclusion: Those Who Prepare Now Will Be Stronger in 2026 

The VAT increase on accommodation is more than a price adjustment. It affects strategy, distribution, communication, the guest experience, and your software setup. But hotels that act now will be in a stronger position in 2026. 

Use the coming weeks to run scenarios, review pricing structures, and prepare your systems. And be transparent with guests. This prevents misunderstandings and builds trust. 

If you have questions about preparing your setup for the VAT change or how to best restructure your pricing, Smarthotel’s support team is happy to advise. Reach out here.