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OTA Commission Calculator: Completed-Stay Cost

Calculate hotel OTA cost from current contracts, funded discounts, payment fees, cancellations, and completed-stay contribution.

Quick answer

Calculate OTA cost from the hotel's current contract, invoices, rate stack, and payout reports. Separate commission, property-funded discounts, payment costs, programme charges, cancellations, and service costs, then divide by completed stays or completed-stay revenue. Public percentage ranges cannot establish a property's true acquisition cost.

Editorial note: Reviewed on 18 August 2026. All figures should come from the property's current documents; examples illustrate formulas and are not platform fee claims.

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ScaleMyHotel Editorial Team
· · · 8 min read
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Hotel team reconciling OTA commission and payout reports

How should a hotel calculate OTA commission cost?

Use the current signed agreement, programme terms, invoices, guest rate stack, and settlement report. Calculate on completed stays so cancelled bookings do not distort the result.

Build the input sheet

For each completed reservation, capture collected room revenue, commission, property-funded discount, payment cost, programme charge, channel-specific service cost, refund or cancellation adjustment, and variable stay cost.

Calculate three views

  1. Commission rate = commission ÷ eligible commission base
  2. Total channel cost = all attributable channel costs
  3. Completed-stay contribution = collected room revenue − total channel cost − variable stay cost

State whether taxes, fees, and ancillary revenue are included. Keep platform-funded discounts separate when funding is verified.

⚠️

Do not estimate from the guest price alone

The visible discount does not show who funded it, which base attracts commission, or how settlement adjustments apply.

Worked example

If a completed stay produces ₹10,000 of collected room revenue, ₹1,500 commission, ₹500 property-funded discount, ₹200 payment and programme costs, and ₹2,300 variable stay cost, channel cost is ₹2,200 and contribution is ₹5,500.

The figures illustrate the formula only.

Compare OTA and direct fairly

For direct bookings include media, agency, technology, booking-engine, payment, labour, discounts, cancellation, and loyalty costs. Also account for incremental demand: a costlier channel may still add valuable demand the hotel would not otherwise reach.

Limitations

Contract bases and settlement treatment vary. Reconcile calculator output with finance and the platform statement before making distribution changes.

Sources & References

  1. [1] Investor overview . MakeMyTrip Limited
  2. [2] Company overview . Booking Holdings
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About the Author

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ScaleMyHotel Editorial Team
Hospitality Growth Editorial Team

The ScaleMyHotel editorial team publishes practical guidance for independent hotels. Articles separate definitions from recommendations, label illustrative examples, and are reviewed against the cited sources and the product or platform interfaces available at the time of publication.

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