What is an OTA commission rate?
An OTA commission rate is the percentage of eligible booking revenue a hotel pays an online travel agency for distribution and booking services. Exact rates vary by hotel, market, program, and contract, so use your property's actual agreement when modeling costs.
How to calculate OTA commission
Multiply eligible OTA booking revenue by the applicable commission rate. For example, $100,000 in eligible OTA revenue at 18% produces $18,000 in modeled commission expense.
OTA commission vs. direct booking cost
Direct bookings can avoid OTA commission, but paid media, metasearch, loyalty benefits, payment processing, website and booking-engine costs, and marketing labor can all contribute to direct acquisition cost.
What can change effective OTA distribution cost?
Promotional discounts, visibility programs, cancellation treatment, rate strategy, and other commercial terms can change OTA economics beyond the headline commission percentage.