Tool · Distribution costs

OTA commission calculator

By Rank Hotelier · Published September 26, 2026

Estimate what online travel agency commissions cost your hotel each year from three numbers: annual room revenue, the share of that revenue booked through OTAs and your average commission. If you don’t know your room revenue, Help me estimate works it out from rooms, ADR and occupancy.

Your hotel

Annual room revenue

$

Rooms revenue only, before commissions. Help me estimate

OTA revenue share

%

Average OTA commission

%

Estimated annual OTA commissions

$357,500

14.3% of your room revenue goes to OTA commissions.

Estimated commission cost, not projected savings.

See which of these bookings your direct channel could compete for.

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How the estimate works

The calculator multiplies three numbers: annual room revenue × OTA revenue share × average OTA commission.

• Annual room revenue: rooms revenue only, before commissions. Help me estimate calculates it as rooms × ADR × 365 × occupancy.
• OTA revenue share: the percentage of room revenue, not of the number of bookings, that comes through online travel agencies. OTA bookings can be longer or shorter, and pricier or cheaper, than the rest, so a share of bookings would skew the result.
• Average OTA commission: a weighted average, not a simple one. Divide the commission you paid all OTAs in a year by the room revenue they delivered, or weight each OTA’s rate by its share of OTA revenue: if 70% of OTA revenue pays 18% and 30% pays 22%, the average is 0.7 × 18% + 0.3 × 22% = 19.2%. Include the extra commission of any visibility program you pay for.

What the estimate doesn’t tell you

• Estimated commission isn’t potential savings. Direct bookings have costs too; compare them per booking in Direct booking vs. OTA.
• Not every OTA booking could move direct. Some guests only find you through an OTA, and some OTA demand is worth keeping.
• Commission isn’t charged only on room revenue. Booking.com, for example, charges on the total booking amount, which can include extra fees, cancellation and no-show charges and, in most countries, VAT or GST; see OTA commissions. Applying the rate to room revenue alone can understate the cost.
• Discounts you fund aren’t included. Genius and other promotions cost you through a lower price, separately from commission.