What's a good OTA commission rate?

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Short answer

A good OTA commission rate is one you have modelled against ADR, cancellation risk, visibility, and repeat-booking value. Exact rates depend on platform, contract, market, and programme participation. The bigger lever is often shifting profitable share to direct booking rather than negotiating commission in isolation.

Full answer

OTA commission rates have ranges that depend on platform, property size, market, and negotiated terms. **Booking.com:** confirm your base commission, Genius or visibility-programme costs, mobile-rate discounts, payment-processing terms, and cancellation exposure in your own contract. **Expedia and related brands:** confirm the commission model, member-rate discount, travel-agent terms, and whether the booking is merchant or agency model. **Hotels.com / Vrbo (Expedia-owned):** Similar to Expedia. **Negotiation paths (rarely worth the effort for small properties):** - **Genius/Member+ enrolment** typically lowers effective rate while requiring discount funding. Math works for properties needing visibility boost; doesn't work for properties already booked solid. - **Account manager negotiation** depends on volume, market, and strategic value. Model the savings against the time and channel concentration required. - **Channel concentration** — if you concentrate share with one OTA, they may negotiate. Cost: less channel diversification. **The real lever:** shift share from OTA to direct booking rather than fight only for 1-2 percentage points of commission. Model the value with your own ADR, occupancy, commission rate, and repeat-booking behaviour before deciding which channel work matters most. **When to push direct:** Always. Even if you can't reduce OTA commission, you can grow direct share through better booking engine, value-adds on direct (without breaking parity), past-guest mailings, brand retargeting, and a guest portal that earns repeat-direct intent.

Related questions

Yes, OTA contracts can be cancelled. Most hotels never do because OTA volume isn't easily replaced. Reducing share is usually more practical than full cancellation.

Airbnb's hotel-side commission is typically 14-16% — lower than Booking.com for hotels listing rooms there. Volume is much smaller for traditional hotels than for vacation rentals.

Smaller regional OTAs (Hostelworld for hostels, Mr & Mrs Smith for boutique) sometimes have lower commission but also much lower volume. The economics rarely justify swapping major OTAs for niche ones.

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