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Online travel agencies bring guests you could never reach alone, but OTA commission is often the biggest marketing cost a small hotel pays. Many owners don't know their real net rate per booking. Let's work it out.
Typical commission ranges
Base commission for Indian properties is commonly in the 15–25% range, depending on the platform, your contract and city. Then extras get added:
- Visibility programs (Preferred, Genius discounts, sponsored listings) add a few percent more or require a discount
- GST on commission is charged to you
- Payment collection fees apply on some "pay now" models
- Mandatory discounts for member deals reduce the room rate before commission
Calculate your real net rate
Example for a ₹3,000 room:
| Item | Amount |
|---|---|
| Room rate | ₹3,000 |
| Member discount (10%) | –₹300 |
| Commission 18% on ₹2,700 | –₹486 |
| GST on commission (18%) | –₹87 |
| You receive | ≈ ₹2,127 |
That is close to 30% less than your listed price. Do this calculation for every OTA you use.
When OTAs are worth it
- New properties with no reviews yet
- Weekday or off-season gaps you can't fill otherwise
- Foreign or out-of-state guests who search only on apps
How to reduce dependence
- Build a fast website with a booking engine. See hotel website features
- Offer a small direct-booking perk (breakfast, late checkout) instead of cutting price
- Collect guest WhatsApp numbers and email at checkout for repeat stays
- Strengthen your Google listing. See Google Business Profile posts and Q&A
Read your OTA contract for rate parity clauses before offering a lower price on your own site. Perks are usually safer than a lower rate.
FAQs
Can I negotiate OTA commission?
Larger or high-performing properties sometimes can. Small hotels usually get better results by improving content and reviews than by negotiating.
Should I leave OTAs completely?
Rarely. Use them as one channel while you grow direct bookings.
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