Platforms like Booking.com bring visitors, but they charge commission on every reservation. Most property owners know the percentage, but few have calculated the annual amount.
The calculation
The formula is simple:
Annual commission = channel revenue × commission percentage
The percentage varies by platform and agreement, so use yours from your invoices.
Hypothetical example: an accommodation has €60,000 in annual revenue and 70% comes from Booking.com, which is €42,000. At 15% commission, they pay €6,300.
What changes with direct bookings
If 20% of those bookings became direct, €8,400 in revenue moves and the commission you save is €1,260. Direct bookings have costs too, like card payment fees. If we assume 2%, €168 is deducted and the net benefit is €1,092 per year, without increasing the number of visitors.
There are other benefits that don’t show in the calculation: you have the guest’s contact details (with their consent), and you can suggest them another stay.
How to reduce your dependency
- Put your own booking engine on your site and social media.
- Give them a reason to book directly: perks like late check-out, welcome gift, or flexible cancellation, instead of just a discount. Always check your contracts with platforms.
- Ask previous guests to rebook directly in a post-stay email.
- Track your direct booking percentage every month. What you don’t measure doesn’t improve.
Don’t cut platforms abruptly
OTAs stay useful: they bring guests who wouldn’t find you otherwise. The goal isn’t to leave them, but not to depend on them exclusively.
At HotelPoint, direct reservations through the booking engine don’t charge a booking commission. Want to see how much you’d save on your accommodation? Book a demo and we’ll calculate it together.