OTA commission: ₹64,800 a month
| Room-nights sold a month | 360 |
| Of which through OTAs | 180 |
| OTA room revenue | ₹3,60,000 |
| Commission a year | ₹7,77,600 |
| Kept by moving 20% direct | ₹11,520 a month |
A direct booking still pays the payment gateway, about 2%, which is taken off the saving. Keep OTAs for discovery; win the repeat stay direct.
How it is worked out
- Room-nights sold a month = rooms × 30 × occupancy.
- OTA room revenue = the share of those nights sold through OTAs × your average rate.
- Commission = OTA room revenue × the commission rate.
- A booking you win direct still pays about 2% to the payment gateway, so the saving is the commission minus 2%.
The default numbers are the example in our guide: 20 rooms at 60% occupancy, ₹2,000 a night, half sold through OTAs at 18%. That is about ₹65,000 a month in commission.
The full explanation, with sources: Cutting OTA commission.
This tool gives general information, not tax or legal advice. Check your own case with your CA or the official source.