By Direct booking savings calculator
- Revenue moved to direct
- €50,000
- Commission no longer paid
- €9,000
- Cost of the direct bookings
- −€1,500
- Kept per year
- €7,500
How the calculation works
The numbers we started you with are an example, not a benchmark: €500,000 of room revenue through the OTAs, an 18% average commission, 10% of those bookings moved to direct, and 3% to take a direct booking. Moving €50,000 of bookings saves €9,000 in commission and costs €1,500 to take, so you keep €7,500 a year.
Two things aren't in there because they're hard to put a number on. On the plus side, a guest who books with you is someone you can write to before they arrive, offer an upgrade and invite back. On the minus side, winning those bookings can cost money too, for example ads on search engines or metasearch.
Questions
What commission do OTAs charge hotels?
It is set in each property's contract and differs by OTA, country and visibility programme, so the calculator asks for your own rate rather than assuming one.
What counts as the cost of a direct booking?
The card or payment fee on the booking, and the booking engine's fee if it charges per booking. Add advertising if you pay for the traffic that books directly.
Is anything I enter saved?
No. The calculation runs in your browser and nothing you type is sent to Vector Guest.
Related
- Hotel glossaryPlain definitions of the terms hotels, aparthotels and serviced apartments use every day, with the formulas for ADR, RevPAR, occupancy and length of stay.
- Platform overviewOne system for your hotel or aparthotel: reservations, the OTAs, guest messages, cleaning, pricing and the money, with AI agents that can see all of it.