Understanding motel OTA commissions
Compare direct and OTA booking costs using your own agreement, not a universal commission percentage.
By Blaixin · General operational guidance
Read the agreement behind the booking
OTA means online travel agency. Commission rates and charge bases depend on your agreement, market and services. Check the partner account and contract for the particular platform. Do not use an advertised traveler rate or someone else’s percentage as evidence of your property’s cost.
Compare the same stay
Choose one room type, stay date and cancellation policy. Record the room revenue, taxes and fees under the relevant accounting rules, the commissionable base and any payment-processing or promotion charges. Compare like with like; a prepaid non-refundable rate and a flexible pay-at-property rate are not identical offers.
Direct bookings are not automatically free
A website, payment processing, marketing and staff time can all have costs. A direct booking may avoid a platform commission but still carries an acquisition and servicing cost. Separate those costs so you can understand the trade-off without assuming every direct booking is more profitable.
Review cancellation and payout exceptions
Check what happens to commissions and payouts after a cancellation, no-show, refund or disputed charge. Reconcile against the actual statement and property record. Ask the platform or your accounting adviser when a charge base or tax treatment is unclear.