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Hotel OTA Commission Blend Calculator
Distribution cost varies widely by channel — blended acquisition cost drives net ADR.
Net ADR
$179.60
Blended commission %
0.10%
Blended commission $
$20.40
How the math works
Blended % = sum(channel mix × channel cost). Net ADR = gross − blended × ADR.
30%×1% + 40%×18% + 15%×10% + 15%×8% = 10.35%. $200 − $20.70 = $179.30 net ADR.
How to Use
- Enter direct channel % of bookings.
- Enter OTA (Expedia/Booking) %.
- Enter GDS %.
- Enter group/negotiated %.
- Enter OTA commission %.
- Enter GDS cost %.
- Enter gross ADR.
- Read blended commission and net ADR.
Frequently Asked Questions
Channel commission rates?
Direct web/phone: 0-2% (merchant fees). OTAs (Expedia, Booking.com, Hotels.com): 15-25% commission on gross. Agoda/CTrip Asia: 18-25%. GDS (Amadeus, Sabre, Travelport): 8-12% including travel agent 10%. Wholesale/tour operator: 15-30%. Meta search (Google, Trivago): 6-15% CPC-based. Negotiated corporate: 0-12% depending on contract.
Why is channel mix critical?
On $200 ADR with 40% OTA at 18% = $14.40 commission × 40% = $5.76/booked room avg. On 200-key hotel at 70% occupancy × 365 = 51,100 rooms × $5.76 = $294k/year OTA cost. Direct channel: <$1/room. Shift 10 points from OTA to direct: $50-75k annual savings. Brand loyalty programs push direct. Aggregate industry trend: 55-65% OTA for limited-service independents, 25-35% for strong brands.
How to shift mix to direct?
(1) Rate parity with OTAs — no point shifting if rate is worse. (2) Best-rate guarantee with direct-book incentive (free upgrade, breakfast). (3) Loyalty program (Marriott Bonvoy, Hilton Honors drive 40-60% of branded revenue direct). (4) SEO/Google Hotel Ads to capture intent. (5) Website conversion optimization. (6) Retargeting OTA lookers. Brands typically capture 10-20 points more direct than independents.
Net ADR view?
Net ADR = gross ADR − blended commission. Revenue managers increasingly run rate strategy on net ADR, not gross. Group rate of $175 with 10% commission = $157.50 net. Direct rate $185 with 0% = $185 net. OTA $195 with 18% = $159.90 net. Direct-book lowest gross can be highest net. Distribution-aware pricing is next-gen revenue management discipline.
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