# OTA commission

A term used when buying hotel.

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

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.

Part of: Buying a Hotel (https://searchspheresource.com/guides/buying-a-hotel)

Source: https://searchspheresource.com/guides/buying-a-hotel/terms/ota-commission
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt