About the OTA Commission Savings Simulator
Online Travel Agencies (OTAs) provide massive global reach, but their commission fees ranging from 15% to 25% take a heavy bite out of hotel margins. This tool isolates third-party channels to show hoteliers exactly how much profit is lost each month and year to acquisition fees.
How to Use This Simulator
- Input Monthly OTA Revenue: Enter the gross revenue generated strictly through third-party platforms.
- Set Your Target Direct Shift: Choose what percentage of OTA guests you aim to convert into direct bookers (via loyalty perks, best-rate guarantees, or instant web booking).
- Customize Channel Rates: Adjust commission percentages and revenue shares based on your current contracts with Booking.com, Expedia, and Airbnb.
What the Output Metrics Tell You
- Annual Capital Lost to OTA Fees: The cumulative dollar amount paid directly out of your margins to third parties every 12 months.
- Projected Annual Direct Savings: The net profit immediately returned to your bank account by shifting your targeted percentage of bookings direct.
- 5-Year Saved Revenue Accumulation: The compounding capital unlocked over 5 years that can be reinvested into property upgrades or staff.