Hotel distribution calculator

OTA Commission Calculator

See how much OTA commission costs your hotel and compare it with estimated direct distribution costs.

Enter booking data

Estimated results

OTA commission expense
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Commission per booking
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Potential distribution cost difference
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OTA commission rates

How hotel OTA commission rates work

OTA commission is commonly modeled as a percentage of eligible booking revenue, while actual economics can also be affected by promotions, visibility programs, cancellation rules, and contracted terms.

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.

OTA Commission Calculator FAQ

How is OTA commission calculated?

Multiply eligible OTA booking revenue by the applicable commission rate.

Can every OTA booking be shifted direct?

No. OTA demand may be incremental, so commission savings should not assume every OTA booking would otherwise book direct.

Why compare OTA and direct distribution costs?

The comparison helps hotel teams understand channel economics and the potential value of direct demand.