OTA Commission Calculator
See what channel commission actually costs you, and what a direct booking is worth.
Commission paid per month
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Commission paid per year
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Commission as share of room profit
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Annual saving if you shift that share direct
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Updates as you type. Nothing is sent anywhere — the maths runs in your browser.
Formula
Commission = Room revenue × Commission rate
Saving from going direct = Revenue shifted × (Commission rate − Direct acquisition cost)
How to read it
Commission is usually quoted as a percentage of room revenue, which makes it sound smaller than it is. Against gross operating profit rather than revenue, a 17% commission can be a third or more of what the booking actually earns you. This works out both figures, and what shifting bookings direct would be worth.
- Direct is cheaper, not free. Loyalty discounts, metasearch bids, booking engine fees and marketing all count — 3-6% is a realistic figure, not zero.
- Commission is charged on room revenue, but it eats gross operating profit. That second number is the one to take to an owners' meeting.
- Shifting 100% of bookings direct is not a plan. OTAs deliver genuine incremental demand, particularly in soft periods and unfamiliar markets.
Terms used here
Frequently asked
+What commission do OTAs charge hotels?
Typically 15% to 25% depending on the platform, market and whether the hotel buys into visibility programmes. Booking.com and Expedia sit around 15-18% as standard, rising with preferred-partner or sponsored placement. Smaller and regional channels vary widely.
+Is a direct booking really cheaper?
Usually, but not by the full commission. Once you count loyalty discounts, metasearch bidding, booking engine fees and the marketing that drove the visit, direct acquisition typically costs 3-6% of room revenue. The saving is the gap between that and commission, not the commission itself.
+How do I reduce OTA commission?
Convert repeat guests to direct, since they cost least to reach; use metasearch to intercept the price-check step; and make the direct rate genuinely better on value rather than only on price. Cutting OTA exposure outright usually loses more incremental demand than it saves.