How does Agoda booking work?

Agoda's booking process operates through two primary models: the merchant model and the agency model. These models facilitate the booking of accommodations on the Agoda platform:
Merchant Model: In the merchant model, guests pay Agoda directly for their reservation. Agoda keeps a percentage of this total payment as its commission or service fee, while the host or property owner receives the rest. As the merchant, Agoda handles the transaction. Agoda charges guests' credit cards without sharing payment information with property hosts.
Agency Model: Agoda acts as an agent between guests and hosts to book reservations. When a guest books, Agoda collects booking and payment information. Agoda gives the property host booking information instead of charging the guest. The host charges the guest up front or at checkout. Agoda makes money from property host commissions or fees.