What's a good OTA commission rate?

Updated:

Short answer

Booking.com: 15% (Genius level top performers) to 22% (smaller properties without negotiated rates). Expedia: 18-25%. Hotels.com (Expedia-owned): similar. Below 15% on Booking.com is rare and usually requires Genius enrolment plus negotiation. The bigger lever is shifting share from OTAs to direct booking rather than negotiating commission lower.

Full answer

OTA commission rates have ranges that depend on platform, property size, market, and negotiated terms. **Booking.com (2026 standards):** - Base commission: 17-22% for most properties - Genius Level 1: 17-20% with discount funded by property (10% to Genius members) - Genius Level 2-3: 22-25% commission but premium visibility - Mobile rate: 20% additional discount on mobile-only bookings (optional) - Negotiated for high-volume properties: 15-17% in some cases **Expedia (2026 standards):** - Standard commission: 18-25% - Member+ rate: additional discount funded by property in exchange for visibility - Travel agent commission: typically separate at 10-15% **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** for properties doing €500k+/year OTA revenue can sometimes get 1-3 points off. Most independent hotels are below this threshold. - **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 for 1-2 percentage points of commission. Moving 10 percentage points from OTA to direct on a 50-room hotel running €100 ADR / 70% occupancy is worth €87,000/year in saved commission — far more than any negotiable rate cut delivers. **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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