OTA Commission Calculator

Estimate hotel OTA commission, net room revenue and effective commission rate.

Estimate OTA distribution cost

Enter room revenue booked through an OTA, the commission rate and any fixed booking fee.

OTA-booked room revenue

Commission rate (%)

Bookings

Fixed fee per booking

Commission & fixed fees—

Net revenue after entered OTA fees—

Effective fee rate—

Average fee per booking—

How the calculation works

OTA distribution cost = booked room revenue × commission rate + bookings × fixed fee. Net revenue subtracts the entered fees from booked revenue. The effective fee rate divides total modeled fees by booked revenue.

How to use the result

Use this to compare channel economics or to reconcile expected commission against settlement statements. Pair it with occupancy and rate data so lower acquisition cost is not evaluated without considering demand contribution.

Assumptions and limitations

OTA contracts can include taxes on commission, preferred-placement fees, sponsored visibility, member discounts, cancellation rules, payment processing and market-specific terms. Enter only the fees you intend to model.

Example

Fixed fees matter more when average booking value is low, while percentage commission scales directly with booked revenue.

Frequently asked questions

Does this include OTA advertising fees?

Only if you include them through an appropriate fixed fee or model them separately.

What is effective fee rate?

It is total modeled OTA fees divided by OTA-booked room revenue.

Should cancelled bookings be included?

Use the revenue and bookings that are commissionable under your actual agreement and reporting basis.

Can I compare direct versus OTA bookings?

Yes, but direct bookings also have acquisition, payment and loyalty costs that should be included for a fair comparison.