Cut out the booking commissions, focus on driving direct bookings through your own website and other channels, rather than relying solely on online travel agencies (OTAs) like Booking.com or Expedia. This involves making your website user-friendly, offering incentives for direct bookings i.e. offer 10 or 15% discount, and enhancing your online presence to attract guests.

Some recent Headlines putting OTA’s into the Spotlight

22 May 2025 — The Swiss Price Supervisor has ordered Booking.com to slash commission rates for Swiss hotels by approximately 25%, ruling that the current rates are “excessive.”
30 APRIL 2025 – Hoteliers across Europe are once again taking aim at Booking.com, accusing the popular online platform of exploiting its dominant position in the market. Despite a ruling from the European Court of Justice aimed at curbing the platform’s power, hoteliers claim Booking.com continues to impose unfair practices that hurt their businesses.

Standing Out in the Hospitality Industry

Choosing the right property management system can help you stand out better. Having a good hotel website is only the first step you need to take. Implementing a good management system will boost your efficiency. By automating certain tasks and spending less time on booking sites, you can ensure that you are up to speed with market demand and always ready to face your competitors. Here are some of the features that can be useful to stay ahead of the competition: A high-converting website design tailored for the hospitality industry A free booking engine that eliminates commission and hidden fees A good dynamic pricing tool to set the perfect room rates. These features collectively contribute to a more profitable and guest-centric booking experience. Reducing OTA commissions is not just about cutting costs; it’s about strategically aligning your online presence to prioritize direct bookings and guest relationships. By focusing on a high-converting website, utilizing a free booking engine, and leveraging your tools, you can significantly decrease your OTA commissions while boosting your hotel’s profitability and guest satisfaction.

FAQs About OTA Commissions

How much commission do OTAs take?

Commission rates vary widely but can range from 15% to 30% of the booking value, depending on various factors. Usually OTAs charge the owner directly, some may implement commissions that are paid by the guest in some cases, but these come with strings. There is no fix commission rates, you will need to check individually each OTA to know how much they will charge you. What is the average OTA fee? The average commission rate typically falls around 15%%, though this can vary based on the agreement and the OTA’s market position. It’s is quite a bit of money for independent hotels, so it might be worth it to invest in a website to be findable on search engines on your own and encourage guests to book directly with you.

What is an OTA?

An OTA refers to an Online Travel Agency, a platform that allows consumers to book various travel services, including hotel rooms, flights, and car rental.

What is an OTA in the hotel industry?

In the hotel industry, an OTA is a third-party booking site that hotels use to market their rooms, often at a commission fee. OTAs help hotels reach a wider audience but at the cost of commission fees. Directly addressing the needs and challenges hoteliers face, especially the impact of OTA commissions, requires a blend of strategic insight and practical solutions. By adopting the expert strategies outlined above, hoteliers can navigate the complexities of OTA commissions more effectively, ensuring a more profitable and guest-focused operation. The first step therefor to reduce your Commission Costs is to have your OWN Website where your potential Guest can book direct with you (at a discount)