OTA Channel Cost Calculator

OTA commissions average 15-25% of revenue — significant P&L impact.

Total rooms revenue

OTA % of bookings

OTA commission %

Direct %

Total OTA cost

$990,000

Effective commission %

0.10%

Direct bookings amount

$4,500,000

How the math works

OTA cost = rooms revenue × OTA % × commission.

$10M × 55% × 18% = $990k OTA cost. 9.9% effective commission on total revenue.

How to Use

Enter total rooms revenue.
Enter OTA % of bookings.
Enter OTA commission %.
Enter direct booking %.
Read total OTA cost.

Frequently Asked Questions

OTA commissions?

Booking.com: 15-20%. Expedia: 15-25%. Airbnb: 3-5% (host-side) + 14% service fee (guest-side). Priceline: 15-20%. Total 15-22% typical. Loyalty programs at Marriott/Hilton have own commission structure.

Direct booking push?

Best rate guarantee (hotel direct vs OTA). Perks (late checkout, free breakfast) direct only. Loyalty program sign-ups drive direct bookings. Target direct booking 40-60% of total. Each 1% direct shift saves 20bps in commissions.

Mix implications?

Hotel with 70% OTA / 30% direct: 14% effective commission on revenue. Same hotel at 40/60: 6-8% commission. Massive margin difference. Strategic goal: increase direct bookings while maintaining distribution width.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.