What are OTA commissions in hospitality
Definition
OTA commissions are the percentage that online travel agencies such as Booking.com, Expedia, or Hotels.com charge a hotel for each reservation generated through their platforms. They are deducted from the value of the stay and charged only when a booking materializes.
While OTAs bring visibility and volume, their commissions significantly cut the margin per room. That is why hotels work to balance OTA presence with a more profitable direct booking channel.
Industry benchmark
Indicative commission ranges typically applied by the main OTAs (they vary by country, program, and visibility tier purchased):
| Booking.com | 15% - 18% |
| Expedia | 15% - 25% |
| Hotels.com | 15% - 25% |
| Airbnb (host) | 3% - 15% |
| Higher-visibility programs | up to 30% or more |
Best practices
- Keep rate parity but offer exclusive added value on your own site to tilt the decision toward the direct channel.
- Use OTAs as a shop window (the billboard effect) and win the guest back for their next stay through direct bookings.
- Measure the true acquisition cost per channel to decide how much inventory is worth selling on each OTA.
- Strengthen your owned channels (website, WhatsApp, phone) with instant support to capture travelers before they book on an OTA.
How WeSpeak helps with OTA Commissions
Every reservation WeSpeak helps close directly is an OTA commission your hotel no longer pays. Our AI assistant serves guests in real time on WhatsApp and your website, answers rate and availability questions, and guides them to your booking engine, shifting volume away from OTAs toward your most profitable channel.
Learn more: AI assistant for direct bookings
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