OTA Commission Calculator for Hotels
Most hoteliers know their OTA commission percentage. Far fewer know what it adds up to in a year once GST on commission is included, or what a modest shift to direct bookings would put back in the bank. Enter your own numbers below. Free, no sign-up, and nothing leaves your browser.
Your OTA business
Direct booking costs
What OTAs cost you today
If you shifted some of it to direct
Why the Real Cost Is Higher Than the Headline Percentage
Commission = Annual OTA revenue × Commission %
GST on commission = Commission × 18% (a cost unless you can claim ITC)
Effective cost per booking = (Commission + unrecoverable GST) ÷ OTA room nights
The GST on commission. An OTA contract that says 20% actually invoices 20% plus 18% GST on that 20%, which is 23.6% of the room rate. A hotel whose rooms are taxed at 18% can generally claim the GST back as input credit, so its true cost stays at 20%. A hotel in the 5% room slab without input credit cannot, and pays the full 23.6%. That is why the calculator asks about ITC, and why budget hotels, which are mostly in the 5% slab, feel OTA commission more sharply than upscale ones.
The promotions on top. The headline rate is rarely the whole story. Visibility boosters, mobile-only rates, "deal of the day" participation and cash-back campaigns each add a few points. If your OTA statements show an effective rate above the contract rate, enter the effective rate here. Many Indian hotels find their blended cost across MakeMyTrip, Goibibo, Booking.com and Agoda sits closer to 22% than the 15% they remember signing.
Direct is cheap, not free. A guest who books on your own website still pays through a gateway at roughly 2%, and the booking engine, website and any advertising have a cost. The calculator deducts those before showing a saving, so the number is a net figure, not a marketing claim. Exceed's booking engine is included in the PMS rather than sold separately, which is why the default booking-engine cost is zero.
Five Ways Hotels Actually Move Bookings to Direct
| Lever | What it does | Typical effect |
|---|---|---|
| Google free booking links | Your booking engine rate appears next to the OTAs on Google Hotels at no commission. | Often the single biggest source of new direct bookings. |
| Member or repeat-guest rate | A small discount, free breakfast or late check-out for booking direct, offered by WhatsApp after every stay. | Repeat guests and corporate travellers move first. |
| Rate parity discipline | Never let an OTA show a lower price than your own site. Your channel manager keeps every channel at the same base rate. | Stops guests who found you direct from finishing on an OTA. |
| WhatsApp confirmations and pre-arrival messages | Every OTA guest gets your number, your website and a reason to book direct next time. | Turns OTA guests into direct guests on the second visit. |
| A booking engine that converts | Mobile-first, three steps, UPI and cards, real-time availability, no redirect to a third-party site. | Doubles conversion versus a "send enquiry" form. |
None of these mean leaving the OTAs. They bring guests who would never have found you, and a strong OTA listing is the billboard that drives direct traffic. The goal is to stop paying commission on guests who already know you. Our guides on reducing OTA commission with a booking engine and increasing direct bookings go into each lever in detail, and the channel manager page covers rate parity.
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Frequently Asked Questions
Common questions about OTA commission in India
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What commission do OTAs charge hotels in India?
Most Indian hotels pay between 15% and 25% of the room rate. MakeMyTrip and Goibibo contracts commonly sit in the 18% to 25% range once promotional participation is added, Booking.com starts around 15% and rises with visibility programmes, and Agoda is similar. GST at 18% is charged on top of the commission itself.
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Is GST charged on OTA commission?
Yes. The OTA raises an invoice for its commission plus 18% GST. Whether the hotel can claim that GST back as input tax credit depends on the hotel's own GST position; a hotel paying 5% GST on rooms without ITC generally cannot, so the 18% is a real cost. The calculator lets you switch ITC on or off. See our GST billing guide.
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Does a direct booking cost nothing?
No. A direct booking through your own booking engine still carries a payment-gateway fee, typically around 2%, plus whatever you spend on your website and marketing. It is still far cheaper than 18% to 25% commission, which is why the calculator compares the two honestly rather than treating direct as free.
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How much of my OTA business can realistically move to direct?
Hotels with a good booking engine, a Google free booking link, WhatsApp confirmations and a repeat-guest offer commonly shift 15% to 30% of OTA volume to direct within a year. Repeat guests and corporate travellers move first. The slider on this page lets you test any share.
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Should I stop using OTAs altogether?
No. OTAs bring guests who would never have found you, and a good OTA listing is the billboard that drives direct bookings. The goal is to stop paying commission on guests who already know you, which is what a booking engine, a loyalty offer and rate parity discipline achieve.
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