Online travel agents in India typically charge 15–25% commission on the room rate, deducted before you are paid. On a ₹4,000 booking at 20%, the OTA keeps ₹800 and you net ₹3,200 — before your own card and tax costs. OTAs are worth it for the demand they bring, but every booking you convert to direct keeps that 15–25% in your pocket, which is why the smartest hotels use OTAs for discovery and work hard to win the repeat stay directly.
How OTA commission actually works
An online travel agent — MakeMyTrip, Goibibo, Booking.com, Agoda, Cleartrip — lists your rooms to a huge audience and takes a cut of every booking it sends you. That cut is the commission, and in India it usually lands somewhere between 15% and 25% of the room rate, depending on the platform, your contract, and whether you have bought into visibility boosters that push your listing higher for an extra few points.
There are two billing models. In the commission model, the OTA collects the full rate from the guest and pays you the rate minus commission. In the net-rate (merchant) model, you give the OTA a lower "net" rate and they mark it up to the guest — the effect is the same, the mechanics differ. Either way, the number that matters is what actually reaches your bank.
The real cost of a booking, not the headline rate
A ₹4,000 room booked through an OTA at 20% commission nets you ₹3,200. But the true cost does not stop there. Layer in the payment-gateway fee the OTA or you absorb, any promotional discount you agreed to, and the GST treatment, and the effective take can climb higher. When you compare an OTA booking to a direct one, compare net of everything — that is the only honest number, and it is what the OTA commission calculator is built to show.
When paying commission is absolutely worth it
It is tempting to see commission as pure loss. It is not. OTAs solve the hardest problem in hospitality — demand you could not reach on your own. For a new property, a room in a soft season, or a last-minute empty night, a room sold at 80% of rate beats an empty room at 100%, because an empty room earns nothing and still costs you to keep ready (the maths behind that is in our room-rate breakeven guide). The mistake is not using OTAs — it is letting them own your guest relationship forever.
Shifting the mix toward direct bookings
Every booking you win directly keeps the 15–25% you would have paid. You will not — and should not — kill OTAs, but you can steadily grow the direct share:
- Rate parity, then perks. Match the OTA price on your own site (many contracts require it) and add value the OTA cannot — free breakfast, late checkout, a welcome drink for booking direct.
- Capture the guest on-site. The OTA gives you a name; the stay gives you a relationship. Collect the guest's own contact details at check-in for the next booking.
- Make direct booking effortless. A fast, mobile-friendly booking engine on your own site removes the friction that pushes guests back to the app they trust.
- Use OTAs for discovery, win the repeat. Let the OTA earn its commission on the first stay; make sure the second one comes to you.
OTA Commission Calculator
See exactly how much of your room revenue an OTA commission cut takes, per night and across a full stay. Plan direct-booking incentives with real numbers.
Step by step
Work out what an OTA booking really nets you.
- Start with the room rate. Take the rate the guest pays through the OTA.
- Subtract the commission. Apply the platform’s commission percentage to get the amount the OTA keeps.
- Subtract other costs. Deduct any agreed promo discount, payment fees you absorb, and account for GST treatment.
- Compare to a direct booking. Put the net OTA figure beside what the same room earns booked direct to see the true cost of the channel.
Frequently asked questions
How much commission do OTAs charge in India?
Most online travel agents charge 15–25% of the room rate, deducted before you are paid. The exact figure depends on the platform, your contract, and whether you have opted into paid visibility boosters that raise your ranking for extra commission.
Is it better to sell through OTAs or direct?
Both. OTAs bring demand you cannot reach alone, which is valuable for new properties, soft seasons and last-minute nights. Direct bookings keep the 15–25% commission. The best strategy uses OTAs for discovery and works to convert repeat guests to direct booking.
What is the difference between commission and net rate models?
In the commission model the OTA collects the full guest rate and pays you the rate minus commission. In the net-rate model you give the OTA a lower rate and they mark it up. The cash you receive is similar; only the mechanics differ.
Keep reading
Room Rate Breakeven: The Lowest Rate You Can Actually Afford to Sell
How to work out the breakeven room rate for a hotel, why it falls as occupancy rises, and how to set a rate floor that stops OTA discounting from selling rooms at a loss.
RevPAR, ADR and Occupancy Explained: The Three Numbers Every Hotel Lives By
What RevPAR, ADR and occupancy mean, how to calculate each with a worked example, and why RevPAR — not occupancy — is the number that tells you how a hotel is really doing.