OTA Commission and Direct Booking Calculator
See the yearly total of the commission you pay to online sales channels, and calculate what moving part of your bookings to your own channels would earn your hotel.
Your OTA sales
Direct booking scenario
Result
- Commission per booking—
- Net to the hotel per booking—
- OTA bookings per year—
- Annual commission—
- Annual gain if % of bookings come direct—
How is it calculated?
Annual gain = Annual bookings × Share moved × Average value × (Commission rate − Direct channel cost)
OTAs are a valuable channel for reaching new guests; the goal is not to drop them but to reduce dependency. For details, see the glossary entries for OTA, direct booking and rate parity.
Frequently asked questions
How much do OTAs charge in commission?
OTA commissions usually range from 15% to 25% of the booking value. The rate depends on the country, your contract and any visibility programs the hotel joins; check your channel contract for your own rate.
What amount is commission charged on?
It depends on the channel and the contract: some channels charge commission on the amount including taxes, others on the amount excluding taxes. In this calculator, the average booking value you enter is treated as the amount commission is charged on.
What is the direct channel cost?
When a guest books through the hotel's website, phone or WhatsApp, no OTA commission is paid, but there are other costs such as card processing fees and booking engine charges. The savings calculation deducts this cost from the OTA commission.
How can a hotel increase direct bookings?
The most effective methods are an easy, mobile-friendly booking flow on your website, fast answers to guest questions by phone and WhatsApp, special benefits for returning guests and direct contact with guests during their stay. If your channel contracts include rate parity terms, take them into account when setting prices.
How should seasonal hotels calculate?
Hotels that open only in certain months should enter the length of the season in the 'selling months' field, and use the in-season average for monthly bookings.
Turn WhatsApp questions into bookings The Zeus PMS WhatsApp bot shows guests live rates and availability and records the booking directly in the system, commission-free.
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