OTA commission

Definition

What the online travel agencies take from a booking, the gap between rate and revenue.

Why It Matters

A room sold at a good rate through a channel taking a fifth of it is not a good rate, and the average daily rate a seller quotes almost never nets this out. Ask for the channel mix by month with the commission paid alongside it, then compute net rate per occupied room. A property that has been buying occupancy through the channels for two years has also taught its market to book that way, which is a habit the next owner inherits.