The number on your extranet is not what you keep
When a booking arrives through an online travel agency (OTA), the rate you see is the gross rate. What reaches your account is that rate minus the commission, and the commission is the part most owners never add up over a year. Do it once, with your own numbers, and it changes how you look at every booking channel.
The simple math
OTA commissions commonly run from about 15% to 25% or more, depending on the platform, the property and the programs you join. Some programs that give you more visibility can raise the effective rate.[1][2] The calculation is just a multiplication:
For example, $40,000 a month from OTA bookings at an 18% commission is $7,200 a month, or $86,400 a year. These are example numbers: use yours.
Direct is not free, but it costs much less
A direct booking has its own costs: card processing, your booking engine or channel manager, and the time and marketing it takes to get the guest to your site. Industry analyses put the cost of a direct booking at a small fraction of an OTA commission, even after card fees and guest perks.[1] For the example below I assumed a direct cost of 3%. If yours is higher, the result shrinks, so use your real number.
What moving some bookings direct is worth
Using the same example ($40,000 a month through OTAs, 18% commission, 3% direct cost), this is what you would keep if part of that business came direct instead:
| Share moved direct | You keep per month | You keep per year |
|---|---|---|
| 10% | $600 | $7,200 |
| 20% | $1,200 | $14,400 |
| 30% | $1,800 | $21,600 |
The formula is: OTA revenue × share moved × (commission − direct cost). It assumes the same guests book at the same price, so real results vary. You can try it with your own numbers in the Direct Booking Calculator.
You do not need to leave the OTAs
OTAs bring you guests who would not have found you, and that visibility has value. The goal is not to drop them. It is to stop paying a commission on guests who would have booked with you anyway. One industry analysis points to repeat guests, loyalty members, corporate travelers and drive-market guests as the ones who should rarely be paying you through an OTA.[1]
Six practical ways to win direct bookings
1. Point every link to your own booking page
Check your Google Business Profile, your social profiles and your listings. The website and booking links should lead to your own page, not to an OTA. It is a ten-minute fix with immediate effect. The free hotel checklist includes this and 34 more checks.
2. Make the booking path fast and clear on a phone
Most guests look at your site on a phone. The Book button should be visible without scrolling, prices and policies should be easy to find, and the page should load quickly.
3. Give a reason to book direct
A better rate is not the only reason. Perks such as breakfast, late checkout, flexible cancellation or a welcome gift can tip the decision. Before you change prices or advertise an offer, read your OTA contracts, because terms about rates and promotions vary.
4. Capture repeat guests
Ask for the guest's email at check-in or checkout, with permission, and send a short, friendly “book direct next time” message. A card in the room with a QR code to your booking page also works.
5. Let your reputation do some of the selling
Guests compare reviews before they choose where to book. Reply to every review, and show recent guest comments on your site. Here is a guide with eight sample replies to negative reviews.
6. Measure it every month
Write down the share of bookings that come direct and the share that come from each OTA. If you do not measure it, you cannot tell whether anything is working.
A 30-day starter plan
- Week 1. Gather your numbers: OTA revenue, commission rates and the real cost of a direct booking.
- Week 2. Fix the booking path on your site and the links on your Google Business Profile.
- Week 3. Start collecting guest emails and add the in-room card.
- Week 4. Review the numbers and choose one next step.
Want to know where your hotel stands?
I can look at your property the way a potential guest would, and send you a one-page snapshot with the three fastest improvements. It is free and there is no obligation.
- Hotel Online, “What OTAs Actually Cost in 2026”.
- Smart Order, “The Complete Guide to OTA Commission Rates”.
The examples in this article are illustrative. Commission rates and costs depend on your property, market and agreements.
Mariano Luciani is the founder of USH Digital. He has more than 15 years of experience in customer and guest service and has collaborated with 40 hotels across the United States on photo, video and social media content.