The OTA Commission Calculator
Work out exactly what OTA commissions cost your property each year — and what recovering even 10% of those bookings direct would be worth.
What this calculator does
Commission is deducted before OTA payouts reach your account, so it never appears as a cost line in most resort P&Ls — it hides inside “revenue.” This worksheet pulls it out. Work through the four tables with your own numbers; the whole exercise takes ten minutes with figures from your PMS or channel manager.
Step 1 — Your room revenue base
Worked example: a 40-room independent resort.
| Line | Formula | Example | Your property |
|---|---|---|---|
| A. Rooms | — | 40 | |
| B. Available room nights | A × 365 | 14,600 | |
| C. Occupancy | from PMS, last 12 months | 58% | |
| D. Sold room nights | B × C | 8,468 | |
| E. Average daily rate (ADR) | room revenue ÷ D | $260 | |
| F. Annual room revenue | D × E | $2,201,680 |
Step 2 — Your OTA exposure
Independent resorts typically run 70–90% of room revenue through OTAs. Check your channel manager or PMS source report for the real figure — don't guess low.
| Line | Formula | Example | Your property |
|---|---|---|---|
| G. OTA share of revenue | OTA revenue ÷ F | 75% | |
| H. OTA-sourced revenue | F × G | $1,651,260 | |
| I. Blended commission rate | see Step 3 to derive | 18% | |
| J. Annual commission bill | H × I | $297,227 |
Step 3 — Commission rate scenarios
Your effective rate is rarely the headline 15%. Preferred-partner programmes, visibility boosters, and channel-exclusive mobile rates stack on top — each looked small when it was switched on. Find your true blended rate: total commission deducted last year ÷ OTA-sourced revenue.
| Scenario | Effective rate | Annual commission (example property) | Your property |
|---|---|---|---|
| Base commission only | 15% | $247,689 | |
| Typical blended (some programmes on) | 18% | $297,227 | |
| Preferred partner + boosters | 20% | $330,252 | |
| Everything switched on, year-round | 25% | $412,815 |
Every programme adding to your rate should be re-justified annually. Boosting visibility into a soft shoulder season can be rational; paying 24% on peak-season nights that would have sold anyway is not. Most properties that run this audit find 2–4 points of effective commission they no longer need to pay.
Step 4 — What a mix shift is worth
The goal isn't zero OTA — it's moving the bookings that would have come to you anyway (repeat guests, brand searches, long stays) onto your own site. Model the shift at your blended rate:
| Mix shift | Formula | Annual saving (example, 18%) | Your property |
|---|---|---|---|
| 5 points (75% → 70%) | F × 0.05 × I | $19,815 | |
| 10 points (75% → 65%) | F × 0.10 × I | $39,630 | |
| 15 points (75% → 60%) | F × 0.15 × I | $59,445 | |
| 20 points (75% → 55%) | F × 0.20 × I | $79,260 |
Against those savings, the machinery of a direct booking programme — booking engine ($2,000–$4,000), direct booking improvement ($3,500–$5,000), email automation ($2,500–$3,500) — pays back inside the first year at even a 5-point shift. Add 5–10% of booking value on top for the ancillary effects: direct guests give you their real email, take pre-arrival upsells more often, and can be re-marketed for the return stay without paying commission twice.
Reading your result
| Line J as % of revenue (J ÷ F) | What it usually means |
|---|---|
| Under 8% | Healthy mix — or under-distribution. Check you're not simply missing platforms entirely. |
| 8–13% | Normal for an independent. Worth optimising programme settings and repeat-guest capture. |
| Over 13% | Overdependence. A direct booking programme is likely your highest-return project this year. |
Two of the three engagements in our published results started exactly here: a Thailand property at 92% OTA dependence with zero direct bookings identified $312,000 a year in gaps; a Fijian property on 3 platforms with static pricing identified $185,000. Run your own numbers above — then, if line J surprised you, the free two-minute scorecard at vaeris.com/scorecard estimates how much of it is recoverable. The full diagnostic prices every gap, guaranteed to find $50,000 a year or it's free.