{
  "slug": "ota-commission-vs-direct-booking",
  "title": "OTA Commission vs Direct Booking Calculator",
  "heading": "OTA Commission vs Direct Booking Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/ota-commission-vs-direct-booking",
  "summary": "See what an OTA booking really nets you versus a direct reservation.",
  "description": "Online travel agencies (Expedia, Booking.com) typically charge 15-25% commission on the gross booking rate, which means a $200 OTA booking might net the property only $155-$170 after commission, before any other cost. A direct booking at the same rate keeps the full amount minus a much smaller payment processing fee and marketing cost per booking. This calculator compares net revenue per stay across both channels and shows the effective 'discount' you're giving up by relying on OTA distribution, plus what direct-booking incentive (rate reduction or loyalty discount) you could offer and still come out ahead versus paying full OTA commission.",
  "formula": "OTA net = Rate × (1 − commission %) − payment fee. Direct net = Rate × (1 − direct discount %) × (1 − processing %) − marketing cost per booking.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=ota-commission-vs-direct-booking",
  "inputs": [
    {
      "id": "rate",
      "label": "Booking rate (per stay)",
      "kind": "number",
      "hint": null,
      "default": 450,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "otaCommission",
      "label": "OTA commission",
      "kind": "number",
      "hint": null,
      "default": 18,
      "unit": "%",
      "min": 0,
      "max": 40
    },
    {
      "id": "otaProcessing",
      "label": "OTA payment processing fee",
      "kind": "number",
      "hint": null,
      "default": 1.5,
      "unit": "%",
      "min": 0,
      "max": 10
    },
    {
      "id": "directDiscount",
      "label": "Direct-booking discount offered",
      "kind": "number",
      "hint": null,
      "default": 8,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "directProcessing",
      "label": "Direct payment processing fee",
      "kind": "number",
      "hint": null,
      "default": 2.9,
      "unit": "%",
      "min": 0,
      "max": 10
    },
    {
      "id": "marketingCost",
      "label": "Marketing cost per direct booking",
      "kind": "number",
      "hint": null,
      "default": 15,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "directNet",
      "label": "Net revenue — direct booking",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "otaNet",
      "label": "Net revenue — OTA booking",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "advantage",
      "label": "Direct booking advantage",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "advantagePct",
      "label": "Advantage as % of OTA net",
      "format": "percent",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Booking rate (per stay): 450 $",
      "OTA commission: 18 %",
      "OTA payment processing fee: 1.5 %",
      "Direct-booking discount offered: 8 %",
      "Direct payment processing fee: 2.9 %",
      "Marketing cost per direct booking: 15 $"
    ],
    "outputs": [
      "Net revenue — direct booking: $386.99",
      "Net revenue — OTA booking: $363.47",
      "Direct booking advantage: $23.53",
      "Advantage as % of OTA net: 6.5%"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter booking rate (per stay) ($).",
      "Enter ota commission (%).",
      "Enter ota payment processing fee (%).",
      "Enter direct-booking discount offered (%).",
      "Enter direct payment processing fee (%).",
      "Enter marketing cost per direct booking ($).",
      "Read your net revenue — direct booking on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "rate": 450,
        "otaCommission": 11,
        "otaProcessing": 0.8999999999999999,
        "directDiscount": 5,
        "directProcessing": 1.74,
        "marketingCost": 9
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "rate": 450,
        "otaCommission": 18,
        "otaProcessing": 1.5,
        "directDiscount": 8,
        "directProcessing": 2.9,
        "marketingCost": 15
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "rate": 450,
        "otaCommission": 29,
        "otaProcessing": 2.4000000000000004,
        "directDiscount": 13,
        "directProcessing": 4.64,
        "marketingCost": 24
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What's a typical OTA commission rate?",
      "a": "Expedia and Booking.com typically charge 15-20% for standalone hotels, though rates can run higher (20-25%) for smaller independent properties without volume leverage, and lower (10-15%) for large chains with negotiated master agreements."
    },
    {
      "q": "How much discount can I offer for direct bookings and still win?",
      "a": "As a rule of thumb, you can discount roughly half the OTA commission rate and still net more than the OTA channel, because you're also avoiding the OTA's own processing fee and any secondary commission on ancillary spend. An 18% OTA commission often supports an 8-10% 'book direct' discount profitably."
    },
    {
      "q": "Does direct booking really cost nothing beyond processing fees?",
      "a": "No — factor in your booking engine subscription, website maintenance, metasearch (Google Hotel Ads, Trivago) cost-per-click, and email/loyalty program costs. Blended, most hotels see direct acquisition cost land between $8 and $25 per booking depending on brand strength and repeat-guest mix."
    },
    {
      "q": "Should I ever accept OTA bookings if direct is more profitable?",
      "a": "Yes — OTAs bring incremental demand you likely wouldn't reach otherwise, especially for new-to-brand guests and international travelers. The right strategy isn't eliminating OTA volume, it's converting repeat guests to direct channels and using OTAs primarily for acquisition and shoulder-period fill."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/hotel-revpar-calculator",
    "https://www.revenuelab.fyi/toolbox/hotel-breakeven-occupancy",
    "https://www.revenuelab.fyi/toolbox/hotel-renovation-payback"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — OTA Commission vs Direct Booking Calculator (https://www.revenuelab.fyi/toolbox/ota-commission-vs-direct-booking)"
}