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OTA Commission Leakage + Direct Booking ROI Calculator

Simple | Powerful | Actionable

Estimate how much you’re paying OTAs every month — and how much you can keep by shifting bookings to direct. Click “Generate Report”, fill the form, and your PDF downloads automatically.

Works globally • Any hotel size
Quick settings
Currency
Tip: Start with last month’s room revenue and OTA share.

Inputs

Adjust assumptions for accurate ROI.

Live
$
%
%
Shift 10%
%
%
%
%
Tip: If you don’t know cancellations, leave them at 0%.

Results

Commission leakage + savings + net ROI

Positive ROI
Monthly OTA revenue (estimated)
—
Monthly room revenue × OTA share
Monthly commission leakage
—
OTA revenue × commission rate
Shifted revenue (target)
—
min(shift, OTA share)
Commission saved (monthly)
—
Shifted revenue × commission
Net gain (monthly)
—
Saved − marketing − fees
Net gain (annual)
—
Monthly × 12
Break-even marketing spend
—
Max spend to still break even
Effective shift used
—
min(shift, OTA share)
Insight: —

What This Calculator Shows You (Outcomes)

You’ll get 6 clear results:

  • Monthly OTA Commission Leakage (what you’re paying right now)
  • Revenue You Can Shift to Direct (based on your target)
  • Commission Saved by shifting OTA → Direct
  • Net Monthly Gain (after marketing + payment fees)
  • Net Annual Gain (12-month projection)
  • Break-even Marketing Spend (the maximum you can spend without losing margin)

How It Works (Simple 3-Step)

Step 1: Enter your current hotel performance

Add your Monthly Room Revenue, OTA share %, and Avg OTA commission %.

Step 2: Set a realistic 90-day shift target

Choose your target shift to direct (typically 5%, 10%, or 15%) and add optional cost inputs.

Step 3: Instantly see savings + ROI + budget limits

The tool calculates commission leakage, savings, net profit, annual upside, and break-even spend.

Inputs Explained (Very Specific)

A) Core Inputs (Required)

1) Monthly Room Revenue (MRR)

What to enter: Your total room revenue per month.
Why it matters: Every output is calculated on this base number.
Note: Use gross or net—just be consistent.

2) OTA Share (%)

What to enter: % of your monthly room revenue coming from OTAs.
Example: 60% OTA share means OTAs control most of your revenue.

3) Average OTA Commission (%)

What to enter: Your blended commission rate across OTAs.
Typical range: 15%–25%

4) Target Shift to Direct (% in 90 days)

What to enter: How much of your overall revenue you want to move from OTA → Direct.
Example: 10% shift means you’re aiming to move 10% of total revenue away from OTAs.

Built-in logic (important):
If your OTA share is lower than your shift target, the tool automatically adjusts it.

You can’t shift more than what is currently OTA.

B) Optional Inputs (For More Accurate ROI)

5) OTA Cancellation %

OTAs often have higher cancellations/no-shows depending on policy and season. If you add this, the tool can estimate savings based on realized revenue (not just booked revenue).

6) Direct Cancellation %

Direct bookings may cancel less, especially if you enforce payment rules and improve guest intent.

7) Direct Payment Fee %

Direct booking may include gateway fees (example: 1.5%–3%). The tool subtracts this so your ROI is realistic.

8) Marketing Cost Type

Pick the model that matches how you budget:

Option 1: % of shifted revenue
Use this when spending scales with revenue.
Example: “We’ll spend 5% of shifted revenue.”

Option 2: Fixed monthly marketing spend
Use this when you invest a fixed budget.
Example: “We will spend ₹50,000/month.”

Exactly What The Tool Calculates (Step-by-Step)

1) OTA revenue (how much of your monthly revenue is OTA-driven)

OTA Revenue = MRR × OTA Share

This tells you what portion of your monthly revenue is “commissioned.”

2) Monthly OTA commission leakage (what you’re paying in commission)

OTA Commission Paid = OTA Revenue × Avg Commission

This is your monthly commission “leakage.”

3) Shifted revenue (how much revenue you move from OTA → Direct)

Shifted Revenue = MRR × Shift (capped at OTA share)

If you set shift higher than OTA share, the tool caps it automatically.

4) Commission saved from the shift

Commission Saved = Shifted Revenue × Avg Commission

This is the money you stop paying to OTAs on those bookings.

5) (Optional) Cancellation-adjusted savings (more accurate “net realized” savings)

If you enter cancellation rates, the tool adjusts for actual realized revenue:

  • OTA realization = 1 − OTA cancel %
  • Direct realization = 1 − Direct cancel %

Then uses net realized commission savings:

Commission Saved (Net) = (Shifted Revenue × OTA realization) × Avg Commission

(If cancellation inputs are not provided, it assumes 100% realization.)

6) Direct payment fees (optional)

Payment Fee = Shifted Revenue × Direct Payment Fee %

Because direct bookings aren’t free—you pay gateway fees.

7) Marketing cost (based on your chosen model)

If % model:
Marketing Cost = Shifted Revenue × Marketing Cost %

If fixed model:
Marketing Cost = Fixed Monthly Amount

8) Net monthly gain (real profit after costs)

Net Gain Monthly = Commission Saved − Marketing Cost − Payment Fee
(or uses cancellation-adjusted commission saved if provided)

This is the main number: your monthly profit impact from shifting to direct.

9) Annual gain

Net Gain Annual = Net Gain Monthly × 12

This helps you justify longer-term investments and budget approvals.

10) Break-even marketing spend (how much can you spend safely)

This is the most underrated output. It answers:
“What’s the maximum marketing budget I can spend before ROI becomes zero?”

If % model:
Break-even Marketing % = (Commission Saved − Payment Fee) ÷ Shifted Revenue

If fixed model:
Break-even Marketing (₹/$) = Commission Saved − Payment Fee

Why This Matters for Hotels & Resorts (Real Benefits)

1) Make smarter marketing decisions

Know exactly how much you can spend on:

  • Google Hotel Ads
  • Meta ads
  • Retargeting
  • SEO content
  • WhatsApp automation
  • Website + booking engine upgrades

2) Get clarity on direct booking ROI before you invest

Instead of “let’s try ads,” you know:

  • expected profit
  • break-even spend
  • annual upside

3) Set realistic 90-day goals

Even shifting 5–10% can create meaningful annual gains.
The tool shows how much impact that shift makes for your property.

4) Reduce risk and protect margin

OTAs don’t just charge commission—they control pricing, guest data, and cancellation behaviour.
Direct bookings improve:

  • margin
  • cash flow
  • guest relationship
  • repeat bookings

Who Should Use This (Use Cases)

  • You’re dependent on OTAs and want a direct booking plan
  • You’re about to start Google Hotel Ads and want ROI clarity
  • You’re investing in a website/booking engine and need justification
  • You want to decide your monthly marketing budget based on numbers
  • You want to reduce OTA commission leakage without blind spending

FAQ

1) Do I need exact numbers?

No. Even estimates give strong directional ROI. The calculator is built for planning.

2) What if my commission differs across OTAs?

Use a blended average (weighted or approximate). This tool models using an average commission %.

3) What does “shift to direct” mean?

It means revenue you move from OTAs to direct channels such as your website, phone bookings, WhatsApp, walk-ins driven by digital marketing, and repeat guests.

4) Does direct booking also have costs?

Yes. The tool includes marketing costs and payment gateway fees so the net ROI remains realistic.

5) Why include cancellation rates?

Because high-cancellation OTAs can distort ROI. Including cancellation rates improves accuracy by modeling realized revenue.

6) What’s the biggest insight from this tool?

The break-even marketing spend — it tells you exactly how much you can invest without losing money.