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PeakRooms

Glossary

OTA commission

Definition

The percentage an Online Travel Agency charges a hotel on each booking it brings — commonly 15–20% for independents, deducted from the room revenue.

OTA commission is the fee a platform takes for selling a room. It's usually a percentage of the booking value, charged after the stay, and for most independent properties it lands somewhere around 15–20% — higher if the hotel buys into visibility or loyalty programmes that discount the rate further.

Commission is rarely negotiable for a small operator, and it compounds: the more of your bookings flow through OTAs, the larger your blended commission bill. It's also indirect — some platforms bid on a hotel's own brand name in search, so a property can pay commission on a guest who was already looking for it by name.

Why it matters for direct booking

Commission is the single biggest cost a direct channel removes. Because the rate is fixed, the practical way to reduce what you pay is to shift suitable bookings to a channel you own — every direct booking is one no commission applies to.

Put it into practice — take direct bookings

PeakRooms generates a booking website for your property from a short brief — built to bring you direct, commission-free bookings.

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