Know Your Number
How Much Is OTA Commission Really Costing You in 2026?
Most hotel owners can tell you their room rate to the rupee — but not what OTA commission costs them across a year. That blind spot is expensive. Let's fix it in two minutes with a simple example and a calculator you can run on your own numbers.
The number nobody adds up
OTAs typically take 15–25% of each booking. It feels painless because it's deducted quietly, one booking at a time. But stack a year of bookings together and it becomes one of the largest line items a hotel never budgets for.
A quick worked example
| Assumption | Value |
|---|---|
| Average booking value | ₹5,000 |
| OTA bookings / month | 60 |
| Commission rate | 18% |
| Commission / month | ₹54,000 |
| Commission / year | ₹6,48,000 |
Illustrative. Your rate, volume and average value will differ — run the calculator below for your real figure.
Find your real yearly number
Plug in your average booking value, monthly volume and commission rate — see what OTAs cost you a year, and what shifting to direct would save.
What to do with your number
Seeing the figure is the point — it turns an abstract “commission” into a concrete target. You don't need to abandon OTAs; you need to shift the mix. Capture direct-intent and repeat guests on your own channel, and every point you move is money kept. Start with how to reduce OTA commission, then how hotels increase direct bookings and OTA commission vs direct booking.
Bottom line
You can't manage what you don't measure. Run the calculator, learn your yearly OTA cost, and set one simple goal: move a slice of it to direct. That single number will do more for your margin than any payment-fee worry.
Keep reading
Turn your number into a plan.
Frequently asked questions
How much commission do OTAs charge hotels in India?
Most OTAs take roughly 15–25% of the booking value, varying by platform, contract and visibility tier. On a ₹5,000 booking that's ₹750–₹1,250 gone before you account for any other cost. Our calculator lets you plug in your own rate and volume to see the annual figure.
Is OTA commission bigger than payment fees like UPI MDR?
By a wide margin. A possible UPI MDR or a card fee is a fraction of a percent; OTA commission is 15–25% of the whole booking. If you're worried about 2026 payment charges, OTA commission is the far bigger number to tackle first.
How do I reduce OTA commission without losing bookings?
You don't drop OTAs — you shift the mix. Use them for discovery, then convert repeat and direct-intent guests to your own booking channel with a booking engine, a fast website, and simple loyalty perks. Even a 10-point shift toward direct can be worth lakhs a year.
Share this article