OFFSHORE booking companies are raking in up to 18% commission on a majority of hotel and guesthouse bookings in the city.

The hospitality trade needs to find ways to cut out online intermediaries such as Expedia and Booking.com, the hotel association’s new chairman warned.

But there is no easy solution to the prevalent use of online travel agencies, which are thought to account for three quarters of all bookings in Brighton and Hove.

Hotels and guesthouses are dependent on the sites’ vast reach and marketing power to fill their rooms.

But while large hotels can afford to be flexible with rates, smaller guesthouses are suffering a significant impact on their profit margins.

Jeremy Ogden, the new chairman of the Brighton and Hove Hotels Association, said: “Business is very competitive.

“The market has changed with online pricing and people will shop around for the best deal.

“A huge amount of business now comes from online intermediaries like Expedia and for customers this might offer a cheap price.

“But for hotels it is really affecting margins.

“We need to bring in more business direct and find a way to cut out the intermediaries. Ultimately it would be good if they reduced their commission. We need to get the message out this commission is going to offshore companies. If customers want the quirkiness and individuality Brighton is famous for they need to support us.”

Another burning issue for hospitality is the rise in popularity of Airbnb, a social network which allows people to rent out rooms.

The trade is not regulated and hoteliers, who need to abide by health and safety measures, feel they are at a competitive disadvantage.

Mr Ogden explained: “We don’t object to the principle, but it’s not a level playing field, it’s about achieving parity.”

A former City lawyer who set up LimeHouse on the New Steine seven years ago, Mr Ogden also called for a relaxation of planning regulations to allow struggling guesthouses to convert into residential.

He said: “There’s not enough housing in the city. Rather than allowing small guest houses to go bust, why not allow them to go back to residential? I’m not sure it will make much money, but it offers a new income opportunity.”